Advertisements
Advertisements
Question
Viswanath Furniture Ltd. invited applications for 20,000 shares of ₹ 10 each at a premium of 2 per share payable?
₹ 2 On application
₹ 5 (including premium) on the allotment
₹ 5 On the first and final call
There were oversubscription and applications were received for 30,000 shares and the excess applications were rejected by the directors. Pass the journal entries.
Solution
| Rs. | |
| Application money received (30,000 × Rs. 2) | 60,000 |
| Less: Actual application money due (20,000 × Rs. 2) | 40,000 |
| Refund on rejected application (10,000 × Rs. 2) | 20,000 |
| Date | Particulars | L.F. | Debit Rs. | Credit Rs. |
| (1) | Bank A/c (30,000 x Rs. 2) Dr. To Share Application A/c [Applicaiton money received] |
60,000 | 60,000 | |
| (2) | Share application A/c Dr. To Share capital A/c To Bank A/c [Application money tranferred & refund on rejected application] |
60,000 | 40,000 20,000 |
|
| (3) | Share Allotment A/c (20,000 x Rs.5) Dr. To share capital A/c (20,000 x Rs. 2) To Securities premium A/c (20,000 x Rs.2) [Allotment money due including premium] |
1,00,000 | 60,000 40,000 |
|
| (4) | Bank A/c Dr. To Share allotment A/c [Allotment money received] |
1,00,000 | 1,00,000 | |
| (5) | Share I & final call A/c (20,000 x Rs.5) Dr. To Share capital A/c [call money due] |
1,00,000 | 1,00,000 | |
| (6) | Bank A/c Dr. To share I & final call A/c [call money received] |
1,00,000 | 1,00,000 |
APPEARS IN
RELATED QUESTIONS
The amount received over and above the par value is credited to
Which of the following statement is false?
Write a brief note on calls in advance.
What is a reissue of forfeited shares?
Gaja Lid issued 40,000 shares of ₹ 10 each of the public payable ₹ 2 on the application, ₹ 5 on the allotment, and ₹ 3 on the first and final call. The application was received for 50,000 shares. The Directors decided to allot 40,000 shares on a pro-rata basis and a surplus of application money was utilized for allotment. Pass journal entries assuming that the amount due was received.
Lalitha Ltd. offered 30,000 equity shares ₹10 each to the public payable ₹ 2 per share on the application, ₹ 3 on share allotment, and the balance when required. Applications for 50,0 shares were received on which directors allotted as:
Applicants for 10,000 shares Full
Applicants for 35,000 shares 20,000 shares (excess money will be utilized for allotment
Applicants for 5,000 shares Nil
All the money due was received. Pass journal entries upto the receipt of allotment.
Anjali Flour Ltd. with a registered capital of ₹ 4,00,000 in equity shares of ₹ 10 each, issued 30,0 of such shares; payable ₹ 2 per share on the application, ₹ 5 per share on the allotment, and ₹ 3 shares on the first call. The issue was duly subscribed.
All the money payable was duly received but on the allotment, one shareholder paid the entire balance on his holding of 500 shares. Give journal entries to record the I transactions.
Arjun was holding 1,000 shares ₹ 10 each of Vanavill Electronics Ltd, issued at par. He paid ₹ 3 on the application, ₹ 4 on the allotment but could not pay the first and final call of ₹ 3. The directors forfeited the shares for nonpayment of call money. Give Journal entry for forfeiture of shares.
Simon Ltd issued 50,000 equity shares of ₹ 10 each at par payable on-application ₹ 1 per share, on allotment ₹ 5 per share, on first call ₹ 2 per share, and on second and final call ₹ 2 per share. The issue was fully subscribed and all the amounts were duly received with exception of 2,000 shares held by chezhian, who failed to pay the second and final call. His shares were forfeited and reissued to Elango at ₹ 8 per share. Journalise the above transactions?
United Industries Ltd. issued shares of ₹ 10 each at 10% premium payable ₹ 3 on the application, ₹ 4 on the allotment (including premium), ₹ 2 on the first call, and ₹ 2 on the final call.
Journalise the transections relating to forfeiture of shares for the following situations:
- Manoj who holds 250 shares failed to pay the second and final call and his shares were forfeited.
- Manoj who holds 250 shares field to pay the allotment money and first call and second and final call and his shares were forfeited.
- Manoj who holds 250 shares failed to pay the allotment money and first call money and his shares were forfeited after the first call.
