Issue of Shares for Cash (Principles of Accounting II/Grade XII NEB) 2078/2021
Issue of Shares for Cash and Forfeiture of Shares
2064 Q.No. 9 A
company limited issued 1,000 shares of Rs. 100 each at a premium of Rs. 20 per
share, payable as under:
Rs. 50 on
application
Rs. 70 on allotment
(including premium)
Applications were
received for all the shares and all the shares were duly allotted. All the due
sums were received.
Required: Journal
entries for application and allotment.
Solution
Journal Entries
|
Date |
Particulars |
L.F. |
Debit Rs. |
Credit Rs. |
|
a |
Share application: Bank a/c (1000 × 50) .........................Dr. To Share application a/c (Being share
application money received) |
|
50,000 |
50,000 |
|
|
Share application a/c
.......................Dr. To Share capital a/c (Being share
application money transferred to share capital) |
|
50,000 |
50,000 |
|
b |
Share allotment: Share allotment a/c
(1000 × 70) ....................................Dr. To Share capital a/c (1000 × 50) To Share premium a/c (1000 × 20) (Being share
allotment money made due at premium) |
|
70,000 |
50,000 20,000 |
|
|
Bank a/c ....................................Dr. To Share allotment a/c (Being share
application money transferred to share capital account) |
|
70,000 |
70,000 |
2064 Supp. Q.No. 9
A company limited invited applications for 1,000 shares of Rs. 10 each at a
premium of Rs. 2 per share, payable as under:
Rs. 5 on
application
Rs. 7 on allotment
(including premium)
Applications were
received for all the shares and all the shares were duly allotted. All the due
sums were received.
Required: Journal
entries for application and allotment.
Solution
Journal Entries
|
Date |
Particulars |
L.F. |
Debit Rs. |
Credit Rs. |
|
a |
Share application: Bank a/c (1000 × 50) .........................Dr. To Share application a/c (Being share
application money transferred to share capital account) |
|
50,000 |
50,000 |
|
|
Share application a/c
.......................Dr. To Share capital a/c (Being share
application money transferred to share capital) |
|
50,000 |
50,000 |
|
b |
Share allotment: Share allotment a/c
(1000 × 70) To Share capital a/c (1000 × 50) To Share premium a/c (1000 × 20) (Being share
allotment money made due at premium) |
|
70,000 |
50,000 20,000 |
|
|
Bank a/c ....................................Dr. To Share allotment a/c (Being share
application money transferred to share capital account) |
|
70,000 |
70,000 |
12. 2064 Supp. Q.No. 17 Old Given below, the Balance Sheet of Y
Co. Ltd, for the previous year.
2071 Supp. Q.No. 9
A company issued 10,000 shares of Rs. 100 payable as under:
On application Rs.30 per share On allotment Rs.40
per share
First and final
call: Rs.30 per share
Applications
were received for 16,000 shares. No allotment was made to 1,000 shares. Rest
allotted on pro-rata basis. All money were duly received except a holder
holding 100 shares, failed to pay on first and final call money.
Required: Journal
entries for (a) Application (b) Allotment (c) First and final call
Solution
|
Applied |
Allotted |
Excess |
Transfer |
Refund |
|
|
Allotment |
First
call |
||||
|
16,000
× 30 = 4,80000 |
10,000
× 30 = 3,00000 |
180000
– (1000 × 30) = 150000 |
150000 |
|
30000 |
|
4,80000 |
3,00000 |
150000 |
150000 |
|
30000 |
A company Limited
Journal Entries
|
Date |
Particulars |
L.F. |
Debit Rs. |
Credit Rs. |
|
a |
Share
application: Bank a/c (16000 × 30) .........................Dr. To Share application a/c (Being share
application money received) |
|
480,000 |
480,000 |
|
|
Share application a/c
.......................Dr. To Share capital a/c (10,000 × 30) To Bank a/c (1000 × 30) To Share allotment a/c (Being share
application money transferred to share capital, share allotment and refunded)
|
|
480,000 |
300,000 30,000 150000 |
|
b |
Share
allotment: Share allotment a/c
(10000 × 40) To Share capital a/c (10000 × 40) (Being share allotment money made due at
premium) |
|
400,000 |
400,000 |
|
|
Bank a/c ..........Dr. (400,000 – 150,000) To Share allotment a/c (Being share allotment
money received) |
|
250,000 |
250,000 |
|
c |
Share First
and final call: Share First and final
call a/c (10000 × 30) To Share capital a/c (10000 × 30) (Being share allotment money made due at
premium) |
|
300,000 |
300,000 |
|
|
Bank a/c ..........Dr. (300,000 – 3,000) Calls in arrear a/c
(100 × 30) To Share first & final call a/c (Being share first
& final call money received except nonpayment) |
|
297,000 3000 |
300,000 |
2063 Q.No. 1 A
company invited application for 15,000 shares of Rs. 100 each. The calls were
made as follows:
On application Rs.20 per share On allotment Rs.40
per share (Rs.10 premium per share)
First and final
call: Rs.50 per share
Applications
were received for 21,000 shares. No allotment was made to 1,000 shares. Rest allotted
on pro-rata basis. All the calls were made and the call monies were duly
received. However, a shareholder
holding 450 failed to pay the last call on due date.
Required: Journal
entries for (a) Application (b) Allotment (c) First and final call
Solution
A company Limited
Journal Entries
|
Date |
Particulars |
L.F. |
Debit Rs. |
Credit Rs. |
|
a |
Share application: Bank a/c (21,000 × 20) .........................Dr. To Share application a/c (Being share
application money received) |
|
420,000 |
420,000 |
|
|
Share application a/c
.......................Dr. To Share capital a/c (15,000 × 20) To Bank a/c (1000 × 20) To Share allotment a/c (5000 × 20) (Being share
application money transferred to share capital, share allotment and refunded)
|
|
420,000 |
300,000 20,000 100,000 |
|
b |
Share allotment: Share allotment a/c
(15000 × 40) To Share capital a/c (15000 × 30) To Share premium a/c (15,000 × 10) (Being share allotment money made due at
premium) |
|
600,000 |
450,000 150,000 |
|
|
Bank a/c ..........Dr. (600,000 – 100,000) To Share allotment a/c (Being share
allotment money received) |
|
500,000 |
500,000 |
|
c |
Share First and final call: Share First and final
call a/c (15000 × 50) To Share capital a/c (15000 × 50) (Being share first and final call money made
due) |
|
750,000 |
750,000 |
|
|
Bank a/c ..........Dr. (750,000 – 22,500) Calls in arrear a/c (450 × 50)
To Share first & final call a/c (Being share first
& final call money received except non-payment) |
|
727,500 22,500 |
750,000 |
2069 Set A Q.No. 10
A company issued 75,000 shares of Rs. 100 each at 10% discount payable as
follows:
On application Rs.30 per share On allotment Rs.30
per share
First and final
call: Rs.30 per share
Applications
were received for 90,000 shares.
Allotment
was made as under:
To
applicants for 60,000 shares - full
To
applicants for 30,000 shares - 50%
The
access money on applications were utilized towards the sum due on allotment. A shareholder to whom 1,000
shares were allotted from pro-rata basis failed to pay the first and final call
money. His shares were forfeited.
Required: Journal
entries for (a) Application (b) Allotment (c) First and final call (d)
Forfeiture
Solution
Analytical Table
|
Applied
and money received |
Allotted |
Excess |
Transfer |
Refund |
|
|
Allotment |
First
call |
||||
|
60,000
× 30 = 1800000 |
60000 |
|
|
|
|
|
30,000
× 30 = 900000 |
15000 |
15000
× 30 = 450000 |
450000 |
|
|
|
90,000
× 30 = 2700000 |
75000 |
450000 |
450000 |
|
|
A company Limited
Journal Entries
|
Date |
Particulars |
L.F. |
Debit Rs. |
Credit Rs. |
|
a |
Share application: Bank a/c (90,000 × 30) .........................Dr. To Share application a/c (Being share
application money received) |
|
2700,000 |
2700,000 |
|
|
Share application a/c
.......................Dr. To Share capital a/c (75,000 × 30) To Share allotment a/c (15000 × 30) (Being share
application money transferred to share capital, share allotment) |
|
2700,000 |
2250,000 450,000 |
|
b |
Share allotment: Share allotment a/c (75000
× 30) Discount on issue of
share a/c (75000×10) To Share capital a/c (75000 × 40) (Being share
allotment money made due at discount) |
|
2250,000 750000 |
3000000 |
|
|
Bank a/c ..........Dr. (2250,000 – 450,000) To Share allotment a/c (Being share
allotment money received) |
|
1800,000 |
1800,000 |
|
c |
Share First and final call: Share First and final
call a/c (75000 × 30) To Share capital a/c (15000 × 50) (Being share first and final call money made
due) |
|
2250,000 |
2250,000 |
|
|
Bank a/c ..........Dr. (2250,000 – 30000) Calls in arrear a/c (1000 × 30)
To Share first & final call a/c (Being share first
& final call money received except non-payment) |
|
2220000 30000 |
2250,000 |
|
c |
Forfeiture of 1,000 shares Share capital a/c
(1000 × 100) To Share forfeiture a/c (1000 × 60) To Calls in arrear a/c (1000 × 30) To Discount on issue of share (1000 × 10) (Being forfeiture of 1000 shares of
non-payment of first and final call money) |
|
100000 |
60000 30000 10000 |
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