Advertisements
Advertisements
Question
Kishna Ltd issued 15,000 shares of Rs 100 each at a premium of Rs 10 per share, payable as follows:
|
On application |
Rs 30 |
|
On allotment |
Rs 50 (including premium) |
|
On first and final call |
Rs 30 |
All the shares subscribed and the company received all the money due, With the exception of the allotment and call money on 150 shares. These shares were forfeited and reissued to Neha as fully paid share of Rs 12 each Give journal entries in the books of the company.
Solution
Books of Krishna Ltd
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
|
Bank A/c |
Dr. |
|
4,50,000 |
|
|
|
|
|
To Share Application A/c |
|
|
|
4,50,000 |
|
|
(Share Application money received for 15,000 shares @ Rs 30 per share) |
|
|
|
||
|
|
Share Application A/c |
Dr. |
|
4,50,000 |
|
|
|
|
|
To Share Capital A/c |
|
|
|
4,50,000 |
|
|
(Share Application money of 15,000 shares transferred to Share Capital Account) |
|
|
|
||
|
|
Share Allotment A/c |
Dr. |
|
7,50,000 |
|
|
|
|
|
To Share Capital A/c |
|
|
6,00,000 |
|
|
|
|
To Securities Premium A/c |
|
|
1,50,000 |
|
|
|
(Share Allotment money on 15,000 shares @ Rs 50 per share including Rs 10 securities premium due) |
|
|
|
||
|
|
Bank A/c |
Dr. |
|
7,42,500 |
|
|
|
|
|
To Share Allotment A/c |
|
|
|
7,42,500 |
|
|
(Share Allotment received on 14,850 shares and 150 shares failed to pay the money due) |
|
|
|
||
|
|
Share First and Final Call A/c |
Dr. |
|
4,50,000 |
|
|
|
|
|
To Share Capital A/c |
|
|
|
4,50,000 |
|
|
(Share First and Final Call for 15,000 shares @ Rs 30 per share due) |
|
|
|
||
|
|
Bank A/c |
Dr. |
|
4,45,500 |
|
|
|
|
|
To Share First and Final Call A/c |
|
|
4,45,500 |
|
|
|
(Share First and Final Call received for 14,850 shares @ Rs 30 per share and 150 shares failed to pay amount due) |
|
|
|
||
|
|
Share Capital A/c (150×100) |
Dr. |
|
15,000 |
|
|
|
|
Share Premium A/c (150×10) |
Dr. |
|
1,500 |
|
|
|
|
|
To Share Allotment A/c (150×50) |
|
|
7,500 |
|
|
|
|
To Share First and Final Call A/c (150×30) |
|
|
4,500 |
|
|
|
|
To Share Forfeiture A/c (150×30) |
|
|
4,500 |
|
|
|
(150 shares forfeited for non-payment of Share Allotment and Share First and Final Call ) |
|
|
|
||
|
|
Bank A/c |
Dr. |
|
18,000 |
|
|
|
|
|
To Share Capital A/c |
|
|
|
15,000 |
|
|
|
To Securities Premium A/c |
|
|
|
3,000 |
|
|
(150 shares of Rs 100 each reissued @ Rs 120 to Neha) |
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
4,500 |
|
|
|
|
|
To Capital Reserve A/c |
|
|
|
4,500 |
|
|
(Balance of Share Forfeiture Account transferred to Capital Reserve Account) |
|
||||
Note: In the solution, the reissued price of Rs 12 has been assumed as Rs 120 per share
APPEARS IN
RELATED QUESTIONS
Mohit Glass Ltd. issued 20,000 shares of Rs 100 each at Rs 110 per share, payable Rs 30 on application, Rs 40 on allotment (including Premium), Rs 20 on first call and Rs 20 on final call. The applications were received for 24,000 shares and allotted 20,000 shares and reject 4,000 shares and amount returned thereon. The money was duly received. Give journal entries.
Eastern Company Limited, having an authorised capital of Rs 10,00,000 in shares of Rs 10 each, issued 50,000 shares at a premium of Rs 3 per share payable as follows :
|
On Application |
Rs 3 per share |
|
On Allotment (including premium) |
Rs 5 per share |
|
On first call (due three months after allotment) and the balance as and when required. |
Rs 3 per share |
Applications were received for 60,000 shares and the directors allotted the shares as follows :
(a) Applicants for 40,000 shares received shares, in full.
(b) Applicants for 15,000 shares received an allotment of 8,000 shares.
(c) Applicants for 500 shares received 200 shares on allotment, excess money being returned.
All amounts due on allotment were received.
The first call was duly made and the money was received with the exception of the call due on 100 shares.
Give journal and cash book entries to record these transactions of the company. Also prepare the Balance Sheet of the company.
Kumar Ltd. purchased assets of Rs. 6,30,000 from Bhanu Oil Ltd. Kumar Ltd. issued equity share of Rs. 100 each fully paid in consideration. What journal entries will be made, if the shares are issued, (a) at par, and (b) at premium of 20%.
Bansal Heavy machine Ltd purchased a machine worth Rs 3,80,000 from Handa Trader. Payment was made as Rs 50,000 cash and remaining amount by issue of equity share of the face value of Rs 100 each fully paid at an issue price of Rs 110 each. Give journal entries to record the above transaction.
Long Answer Question
State clearly the conditions under which a company can issue shares at a discount.
Naman Ltd issued 20,000 shares of Rs 100 each, payable Rs 25 on application, Rs 30 on allotment , Rs 25 on first call and The balance on final call. All money duly received except Anubha, who holding 200 shares did not pay allotment and calls money and Kumkum, who holding 100 shares did not pay both the calls. The directors forfeited shares of Anubha and kumkum. Give journal entries.
Raunak Cotton Ltd. issued a prospectus inviting applications for 6,000 equity shares of Rs 100 each at a premium of Rs 20 per shares, payable as follows:
|
On application |
Rs 20 |
|
On allotment |
Rs 50 (including premium) |
|
On first call |
Rs 30 |
|
On final call |
Rs 20 |
Applications were received for 10,000 shares and allotment was made Pro-rata to the applicants of 8,000 shares, the remaining applications Being refused. Money received in excess on the application was adjusted toward the amount due on allotment. Rohit, to whom 300 shares were allotted failed to pay allotment and calls money, his shares were forfeited. Itika, who applied for 600 shares, failed to pay the two calls and her share were also forfeited. All these shares were sold to Kartika as fully paid for Rs 80 per shares.
Give journal entries in the books of the company.
Ashoka Limited Company which had issued equity shares of Rs.20 each at a premium of Rs. 4 per share, forfeited 1,000 shares for non-payment of final call of Rs.2 per share. 400 of the forfeited shares were reissued at Rs.14 per share out of the remaining shares of 200 shares reissued at Rs.20 per share. Give journal entries for the forfeiture and reissue of shares and show the amount transferred to capital reserve and the balance in Share Forfeiture Account.
Amit holds 100 shares of Rs 10 each on which he has paid Re.1 per share as application money. Bimal holds 200 shares of Rs 10 each on which he has paid Re.1 and Rs 2 per share as application and allotment money, respectively. Chetan holds 300 shares of Rs 10 each and has paid Re.1 on application, Rs 2 on allotment and Rs 3 for the first call. They all fail to pay their arrears and the second call of Rs 2 per share and the directors, therefore, forfeited their shares. The shares are reissued subsequently for Rs 11 per share as fully paid. Journalise the transactions.
Gopal Ltd. was registered with an authorised capital of ₹ 50,00,000 divided into Equity Shares of ₹ 100 each . The company offered for public subscription all the shares . Public applied for 45,000 shares and allotment was made to all the applicants. All the calls were made and were duly received except the final call of ₹ 20 per share on 500 shares.
Prepare the Balance Sheet of the company showing the different types of share capital.
The authorised capital of ₹ 16,00,000 of Bharat Ltd. is divide into 1,60,000 Equity Shares of ₹ 10 each. Out of these shares, 80,000 Equity Shares were issued at par to public for subscription. The full nominal value is payable on application. All the shares were subscribed by the public and total amount was paid for. Pass necessary journal entries in the books of the company.
Hema Ltd. invited applications for 10,000 shares of ₹ 100 each payable as follows:
₹ 20 on application, ₹ 30 on allotment, ₹ 20 on first call and the balance on final call.
All the shares were applied and allotted. All the money was duly received.
You are required to Journalise these transactions.
Marigold Ltd . was registered with the authorized capital of ₹ 3,00,000 divided into 3,000 shares of ₹ 100 each, which were offered to the public . Amount payable as ₹ 30 per share on application , ₹ 40 per share on allotment and ₹ 30 per share on first and final call . These shares were fully subscribed and all money was dully received . Prepare journal and Cash Book.
Shiva Ltd . issued 1,00,000 Equity Shares of ₹ 10 each at a premium of ₹ 5 per share . The whole amount was payable on application. The issue was fully subscribed . Pass necessary Journal entries.
Authorized capital of Suhani Ltd . is ₹ 45,00,000 divided into 30,000 shares of ₹ 150 each . Out of these company issued 15,000 shares of ₹ 150 each at a premium of ₹ 10 per share . the amount was payable as follows:
₹ 50 per share on application , ₹ 40 per share on allotment (including premium ), ₹ 30 per share on firs t call and balance on final call . Public applied for 14,000 shares. All the money was duly received .
Prepare an extract of Balance Sheet of Suhani Ltd . as per Schedule III , Part I of the companies Act, 2013 disclosing the above information . Also prepare 'Notes to Accounts ' for the same.
Capital raised by issue of shares is called ______.
A company forfeited 4,000 shares of ₹ 10 each on which application money of ₹ 3 has been paid. Out of these 2,000 shares were reissued as fully paid up and ₹ 4,000 has been transferred to capital reserve. Calculate the rate at which these shares were reissued:
Gama Chemicals Ltd. is a newly formed company. How much discount per share can it allow for issuing its shares to the public?
