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Question
Seema Ltd. offered for subscription 10,000 shares of ₹ 25 each, payable ₹ 5 per share on application, ₹ 10 per share on allotment (including ₹ 5 per share as premium), ₹ 5 per share as first call on the shares and the balance in two equal amounts at intervals of three months. All the shares were applied for and allotted. All the money was received except the second call and final call on 200 and 400 shares respectively. Pass the entries in the company's Journal, Cash Book and the ledger. Also show the company's Balance Sheet on completion of the above transactions.
Solution
Issued 10,000 shares of ₹ 25 each at premium of ₹ 5
Applied 10,000 shares
Payable as:
|
Application |
₹ |
5 |
|
|
Allotment |
₹ |
10 |
(5 + 5) |
|
First Call |
₹ |
5 |
|
|
Second Call |
₹ |
5 |
|
|
Final Call |
₹ |
5 |
|
|
|
₹ |
30 |
(25 + 5) |
Books of Seema Limited
Cash Book
Dr. Cr.
|
Date |
Particulars |
L.F. |
Bank |
Date |
Particulars |
L.F. |
Bank (₹) |
|
|
|
Share Application |
|
50,000 |
|
|
|
|
|
|
|
Share Allotment |
|
1,00,000 |
|
|
|
|
|
|
|
Share First Call |
|
50,000 |
|
|
|
|
|
|
|
Share Second Call |
|
49,000 |
|
|
|
|
|
|
|
Share Final Call |
|
48,000 |
|
Balance c/d |
|
2,97,000 |
|
|
|
|
|
2,97,000 |
|
|
|
2,97,000 |
|
Journal
|
Date |
Particulars |
L.F. |
Debit |
Credit |
|
|
|
Share Application A/c |
Dr. |
|
50,000 |
|
|
|
To Share Capital A/c |
|
|
50,000 |
|
|
|
(Application money of 10,000 shares of ₹ 5 each transferred to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
1,00,000 |
|
|
|
To Share Capital A/c |
|
|
50,000 |
|
|
|
To Securities Premium A/c |
|
|
50,000 |
|
|
|
(Share allotment of 10,000 shares transferred to Share Capital at ₹ 5 each and Securities Premium at ₹ 5 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share First Call A/c |
Dr. |
|
50,000 |
|
|
|
To Share Capital A/c |
|
|
50,000 |
|
|
|
(First call due on 10,000 shares at ₹ 5 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Second Call A/c |
Dr. |
|
50,000 |
|
|
|
To Share Capital A/c |
|
|
50,000 |
|
|
|
(Second call due on 10,000 shares at 5 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Call-in-Arrears A/c |
Dr. |
|
1,000 |
|
|
|
To Share Second Call A/c |
|
|
1,000 |
|
|
|
(Second call outstanding on 200 shares at ₹ 5 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Final Call A/c |
Dr. |
|
50,000 |
|
|
|
To Shares Capital A/c |
|
|
50,000 |
|
|
|
(Final call due on 50,000 shares of ₹ to 5 per shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Calls-in-Arrears A/c |
Dr. |
|
2,000 |
|
|
|
To Shares Final Call A/c |
|
|
2,000 |
|
|
|
(Final call outstanding on 400 shares at ₹ 5 each) |
|
|
|
|
Share Application Account
Dr. Cr.
|
Date |
Particulars |
L.F. |
Amount (₹) |
Date |
Particulars |
L.F. |
Amount (₹) |
|
|
Share Capital |
|
50,000 |
|
Bank |
|
50,000 |
|
|
|
|
50,000 |
|
|
|
50,000 |
Share Allotment Account
Dr. Cr.
|
Date |
Particulars |
L.F. |
Amount (₹) |
Date |
Particulars |
L.F. |
Amount (₹) |
|
|
Share Capital |
|
50,000 |
|
Bank |
|
1,00,000 |
|
|
Securities Premium |
|
50,000 |
|
|
|
|
|
|
|
|
1,00,000 |
|
|
|
1,00,000 |
Share First Call Account
Dr. Cr.
|
Date |
Particulars |
L.F. |
Amount (₹) |
Date |
Particulars |
L.F. |
Amount (₹) |
|
|
Share Capital |
|
50,000 |
|
Bank |
|
50,000 |
|
|
|
|
50,000 |
|
|
|
50,000 |
Share Second Call Account
Dr. Cr.
|
Date |
Particulars |
L.F. |
Amount (₹) |
Date |
Particulars |
L.F. |
Amount (₹) |
|
|
Share Capital |
|
50,000 |
|
Bank |
|
49,000 |
|
|
|
|
|
|
Calls-in-Arrears |
|
1,000 |
|
|
|
|
50,000 |
|
|
|
50,000 |
Share Final Call Account
Dr. Cr.
|
Date |
Particulars |
L.F. |
Amount (₹) |
Date |
Particulars |
L.F. |
Amount (₹) |
||
|
|
Share Capital |
|
50,000 |
|
Bank |
|
48,000 |
||
|
|
|
|
|
|
Calls-in-Arrears |
|
2,000 |
||
|
|
|
|
50,000 |
|
|
|
50,000 |
||
Call-in-Arrears Account
Dr. Cr.
|
Date |
Particulars |
L.F. |
Amount (₹) |
Date |
Particulars |
L.F. |
Amount (₹) |
||
|
|
Share Second Call |
|
1,000 |
|
|
|
|
||
|
|
Share Final Call |
|
2,000 |
|
|
|
|
||
|
|
|
|
|
|
Balance c/d |
|
3,000 |
||
|
|
|
|
3,000 |
|
|
|
3,000 |
||
Share Capital Account
Dr. Cr.
|
Date |
Particulars |
L.F. |
Amount (₹) |
Date |
Particulars |
L.F. |
Amount (₹) |
||
|
|
|
|
|
|
Share Application |
|
50,000 |
||
|
|
|
|
|
|
Share Allotment |
|
50,000 |
||
|
|
|
|
|
|
Share First Call |
|
50,000 |
||
|
|
|
|
|
|
Share Second |
|
50,000 |
||
|
|
Balance c/d |
|
2,50,000 |
|
Share Final Call |
|
50,000 |
||
|
|
|
|
2,50,000 |
|
|
|
2,50,000 |
||
Securities Premium Account
Dr. Cr.
|
Date |
Particulars |
L.F. |
Amount (₹) |
Date |
Particulars |
L.F. |
Amount (₹) |
||
|
|
Balance c/d |
|
50,000 |
|
Share Allotment |
|
50,000 |
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
50,000 |
|
|
|
50,000 |
||
As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.
Balance Sheet
|
Particulars |
Note No. |
Amount (₹) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
a. Share Capital |
1 |
2,47,000 |
|
b. Reserves and Surplus |
2 |
50,000 |
|
2. Non-Current Liabilities |
|
|
|
3. Current Liabilities |
|
|
|
Total |
|
2,97,000 |
|
II. Assets |
|
|
|
1. Non-Current Assets |
|
|
|
2. Current Assets |
|
|
|
a. Cash and Cash Equivalents |
3 |
2,97,000 |
|
Total |
|
2,97,000 |
NOTES TO ACCOUNTS
|
Note No. |
Particulars |
Amount (₹) |
|
|
1 |
Share Capital |
|
|
|
|
Authorised Share Capital |
|
|
|
|
……. shares of ₹ 25 each |
… |
|
|
|
Issued Share Capital |
|
|
|
|
10,000 shares of ₹ 25 each |
2,50,000 |
|
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
|
10,000 shares of ₹ 25 each |
2,50,000 |
2,47,000 |
|
|
Less: Calls-in-Arrears |
(3,000) |
|
|
2 |
Reserves and Surplus |
|
|
|
Securities Premium |
50,000 |
||
|
3 |
Cash and Cash Equivalents |
|
|
|
|
Cash at Bank |
2,97,000 |
|
APPEARS IN
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