Moneyplus Company issued for public subscription 75,000 shares of the value of Rs 10 each at a discount of 10% payable as follows:
Rs 2 per share on application, Rs 3 per share on allotment and Rs 4 per share on call.
The company received applications for 1,50,000 shares. The allotment was done as under:
(a) Applicants of 15,000 shares were allotted 5,000 shares.
(b) Applicants of 70,000 shares were allotted 40,000 shares.
(c) Remaining applicants were allotted 30,000 shares.
Money in excess to allotment was returned. Hari, a shareholder who had applied for 3,500 shares out of group B failed to pay allotment and call money. Rohan, a shareholder who was allotted 3,000 shares paid the call money along with the allotment. Rohan also belonged to group B.
Pass necessary journal entries to record the above transactions in the books of the company. Show your working notes clearly.
Y Ltd. purchased furniture costing Rs. 1,35,000 from A. B. Ltd. The payment was made by issue of Equity Shares of Rs. 10 each at a discount of Rs. 1 per share. Pass necessary Journal entries in the books of Y Ltd.
Journal Entries
|
Particulars |
LF |
Debit |
Credit |
|
Furniture a/c Dr To A.B Ltd (Being furniture purchased from A.B Ltd)
|
|
1,35,000
15,000 |
1,35,000
|
|
A.B Ltd a/c Dr Discount on issue of shares a/c Dr To Equity share capital a/c (Being issue of15000 fully paid equity shares of Rs 10 each at a discount Rs 1 per share.)
|
Working note: Number of equity shares to be issued=135000/9 (Price of a share after 1 Rs discount) = 15000 shares.
Shyam Ltd. invited applications for issuing 80,000 Equity Shares of Rs 10 each at a premium of Rs 40 per share. The amount was payable as follows:
On Application Rs 35 per share (including Rs 30 Premium)
On Allotment Rs 8 per share (including Rs 4 Premium)
On First and Final Call - Balance
Applications for 77,000 shares were received. Shares were allotted to all the applicants. Sundaram to whom 7,000 shares were allotted failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards, the first and final call was made. Satyam the holder of 500 shares failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares 1,000 shares were re-issued at Rs 50 per share fully paid up. The re-issued shares included all the shares of Satyam.
Pass necessary Journal Entries for the above transactions in the books of Shyam Ltd.
|
Book of Shaym Ltd. Journal |
|||||
|
Date |
Particulars |
|
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c To Share Application (Share Application received for 77,000 shares at Rs 35 per share)
Share Application A/c To Equity Share Capital A/c To Securities Premium A/c (Share Application of 77,000 shares transferred to equity share capital and securities premium)
Share Allotment A/c To Equity Share Capital A/c To Securities Premium A/c (Share Allotment due on 77,000 shares)
Bank A/c Calls-in-Arrears A/c To Share Allotment A/c (Share allotment received from all allotted shares except 7,000 shares)
Equity Share Capital A/c Securities Premium A/c To Share Forfeiture A/c To Calls-in-Arrears A/c (7,000 shares Rs 9 called-up forfeited for the non-payment of allotment)
Share First and Final Call A/c To Equity Share Capital A/c To Securities Premium A/c (Share first and final call due on 70,000 shares)
Bank A/c Calls in Arrears A/c To Share First and Final Call A/c (Share First and Final Call received on all shares except 500 shares)
Equity Share Capital A/c Securities Premium A/c To Share Forfeiture A/c To Calls in Arrears A/c (500 Shares forfeited for the no non-payment of First and Final Call)
Bank A/c To Equity Share Capital A/c To Securities Premium A/c (1,000 shares of Rs 10 each re-issued at premium of Rs 40 per share)
Share Forfeiture A/c To Capital Reserve A/c (Share forfeiture of 1,000 shares transferred to Capital Reserve)
|
Dr.
Dr.
Dr. Dr.
Dr. Dr.
Dr.
Dr. Dr.
Dr. Dr.
Dr.
Dr. |
|
26,95,000
26,95,000
6,16,000
5,60,000 56,000
63,000 28,000
4,90,000
486,500 3,500
5,000 3,000
50,000
7,000 |
26,95,000
3,85,000 23,10,000
3,08,000 3,08,000
6,16,000
35,000 56,000
70,000 4,20,000
4,90,000
4,500 3,500
10,000 40,000
7,000 |
Working Note:
Satyam shares:
Share forfeiture = Rs 9 per share
Share forfeiture on reissue = 0
Transfer to capital reserve: 500*9=4500 Rs.
Sundaram:
Share forfeiture = Rs 5 per share
Share forfeiture on reissue = 0
Transfer to Capital Reserve: 500*5= 2500
Total amount transferred to capital reserve = 4500+2500= Rs 7000
Jain Ltd. purchased Building for Rs 10,00,000 from Gupta Ltd. 10% of the payable amount was paid by a cheque drawn in favour of Gupta Ltd. The balance was paid by issue of Equity Shares of Rs 10 each at a discount of 10%.
Pass necessary Journal Entries in the books of Jain Ltd.
|
Date |
Particulars |
LF |
Debit (Rs) |
Credit (Rs) |
|
|
Building a/c Dr To Gupta Ltd a/c To bank a/c (being building purchased from Gupta Ltd, Rs 1,00,000 paid by cheque and balance by equity share) |
|
10,00,000
9,00,000 1,00,000 |
9,00,000 1,00,000
10,00,000 |
|
Gupta Ltd a/c Dr Discount on issue of share a/c Dr To Equity share capital a/c (Being 100000 shares of Rs 10 each issued at 10% discount)
|
Record the journal entries for forfeiture and reissue of shares in the following cases:
(a) X Ltd. forfeited 20 shares of Rs 10 each, Rs 7 called up on which the shareholder had paid application and allotment money of Rs 5 per share. Out of these, 15 shares were re-issued to Naresh as Rs 7 per share paid up for Rs 8 per share.
(b) Y Ltd. forfeited 90 shares of Rs 10 each, Rs 8 called up issued at a premium of Rs 2 per share to R for non-payment of allotment money of Rs 5 per share (including premium). Out of these, 80 shares were re-issued to Sanjay as Rs 8 called up for Rs 10 per share.
(c) Z Ltd. forfeited 300 shares of Rs 10 each issued at a discount of Rs 1 per share for non-payment of first and final call of Rs 3 per share. Out of these 200 shares were reissued at Rs 3 per share fully paid up.
Switch
