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Question
Z Ltd . purchased furniture costing ₹ 2,20,000 from C.D Ltd. The payment was to be made by issue of 9% Preference Shares of ₹ 100 each ata premium of ₹ 10 per share . Pass necessary Journal entries in the books of Z Ltd.
Solution
Books of Z Ltd.
Journal
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
Assets A/c |
Dr. |
|
2,20,000 |
|
|
|
To C.D Ltd. |
|
|
2,20,000 |
|
|
|
(Assets purchased from C.D Ltd.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
C.D Ltd. |
Dr. |
|
2,20,000 |
|
|
|
To 9% Preference Share Capital |
|
|
2,00,000 |
|
|
|
To Securities Premium A/c |
|
|
20,000 |
|
|
|
(2,000 9% Preference Shares of Rs 100 each issued at 10% premium to C.D Ltd.) |
|
|
|
|
Working Note:
Number of Shares issued=`220000/(100 + 10) = 2000 "Shares"`
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| Case III | If Mr. Gupta failed to pay the first call and on his subsequent failure to pay the second and final call, his shares were forfeited |
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Based on below information you are required to answer the following question:
Sangita Limited invited applications for issuing 60,000 shares of ₹ 10 each at par. The amount was payable as follows:
On Application ₹ 2 per share
On Allotment ₹ 3 per share
On First and Final Call ₹ 5 per share
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- To applicants for 40,000 shares - Full
- To applicants for 50,000 shares - 40%
- To applicants for 2,000 shares - Nil
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The directors decided to forfeit shares of those applicants to whom full allotment was made and on which allotment money was overdue.
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Based on below information you are required to answer the following question:
Sangita Limited invited applications for issuing 60,000 shares of ₹ 10 each at par. The amount was payable as follows:
On Application ₹ 2 per share
On Allotment ₹ 3 per share
On First and Final Call ₹ 5 per share
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- To applicants for 40,000 shares - Full
- To applicants for 50,000 shares - 40%
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₹ 1,08,000 was realised on account of allotment (excluding the amount carried from application money) and ₹ 2,50,000 on account of call.
The directors decided to forfeit shares of those applicants to whom full allotment was made and on which allotment money was overdue.
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