Share and Share capital of company/Accounting for Debenture Grade 12 (NEB Question Solution) 2078-02-22
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 |
2070 Set D Q.No. 3
A company issued 100,000 shares of Rs. 50 each at a premium 10% payable as
follows:
On application Rs.10 per share On allotment Rs.30
per share
On first and
final call: Balance amount
Applications
were received for 110,000 shares. Excess amount received were adjusted in Allotment
call. Calls amounts were duly received.
Required: Journal
entries for (a) Application (b) Allotment (c) First and final call
2070 Supp Q.No.
9 A company issued 20,000 shares of Rs. 100 each at 10 percent discount payable
as follows:
On application Rs.30 per share On allotment Rs.30
per share with discount
On first and
final call: Rs. 30 per share
Applications
were received for all the shares and calls money were duly received.
Required: Journal
entries for (a) Application (b) Allotment (c) First and final call
2070 Supp Q.No.
10 A company issued 10,000 shares of Rs. 10 each payable on the following terms:
On application Rs.3 per share On allotment Rs.2
per share
On first and
final call: Rs. 5
Applications
were received for 22,000 shares. Allotment were made as follows:
To
applicants of 4,000 shares - 2000 shares
To
applicants of 2,000 shares - 2000 shares
To
applicants of 2,000 shares - Nil
To
applicants of 14,000 shares - pro-rata
It is
resolved that the excess amount paid on application is to be utilized on
allotment and calls. All the money
were duly received.
Required: Journal
entries for (a) Application (b) Allotment (c) First and final call
Solution
Analytical Table
|
Group |
Applied
and money received |
Allotted |
Excess |
Transfer |
Refund |
|
|
Allotment |
First
call |
|||||
|
I |
4,000
× 3 = 12,000 |
2000 × 3 = 6,000 |
2000
× 3 = 6,000 |
2000 × 2 = 4,000 |
Rs.2,000 |
-
|
|
II |
2,000
× 3 = 6,000 |
2000 × 3 = 6,000 |
- |
- |
- |
- |
|
III |
2,000
× 3 = 6,000 |
- |
- |
- |
- |
Rs.6,000 |
|
IV |
14,000
× 3 = 42,000 |
6,000 × 3 = 18,000 |
8,000
× 3 = 24,000 |
6,000
× 2 = 12,000 |
Rs.
12000 |
- |
|
Total |
22,000
× 3 = 66,000 |
10,000 × 3 = 30,000 |
Rs.
30,000 |
Rs.16,000 |
Rs.14,000 |
Rs.
6,000 |
A company
Limited
Journal Entries
|
Date |
Particulars |
L.F. |
Debit Rs. |
Credit Rs. |
|
a |
Share application: Bank a/c (22,000 × 3) .........................Dr. To Share application a/c (Being share
application money received) |
|
66,000 |
66,000 |
|
|
Share application a/c
.......................Dr. To Share capital a/c (10,000 × 3) To Share allotment a/c (8000 × 2) To Share first and final call a/c To Bank a/c (2000 × 3) (Being share
application money transferred to share capital, share allotment, share first
and final call account and rejected application money refunded) |
|
66,000 |
30,000 16,000 14,000 6,000 |
|
b |
Share allotment: Share allotment a/c (10,000
× 2) ...............................Dr. To Share capital a/c (10000 × 2) (Being share
allotment money made due) |
|
20,000 |
20,000 |
|
|
Bank a/c ..........Dr. (20,000 – 16,000) To Share allotment a/c (Being share
allotment money received) |
|
4,000 |
4,000 |
|
c |
Share First and final call: Share First and final
call a/c (10,000 × 5) To Share capital a/c (10000 × 5) (Being share first and final call money made
due) |
|
50,000 |
50,000 |
|
|
Bank a/c ..........Dr. (50,000 – 14000) To Share first & final call a/c (Being share first
& final call money received) |
|
36000 |
36,000 |
2071 Supp Q.No.
9 A company issued 10,000 shares of Rs. 100 each, payable as follows:
On application Rs.30 per share On allotment Rs.40
per share
On first and
final call: Rs.30 per share
Applications
were received for 16,000 shares. No allotment was to 1,000 shares. Rest alloted 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
Analytical Table
|
Applied
and money received |
Allotted |
Excess |
Transfer |
Refund |
|
|
Allotment |
First
call |
||||
|
1,000
× 30 = 300000 |
|
|
|
|
30,000 |
|
15,000
× 30 = 450000 |
10000 |
10000
× 30 = 300000 |
5000
× 30 = 150,000 |
|
|
|
16,000
× 30 = 480000 |
10000 |
3,00000 |
150000 |
|
30000 |
A company
Limited
Journal Entries
|
Date |
Particulars |
L.F. |
Debit Rs. |
Credit Rs. |
|
a |
Share application: Bank a/c (160,000 × 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 Share allotment a/c (5000 × 30) To Bank a/c (1,000 × 30) (Being share
application money transferred to share capital, share allotment and refunded)
|
|
480,000 |
300,000 150,000 30,000 |
|
b |
Share allotment: Share allotment a/c (10000
× 40) To Share capital a/c (10000 × 40) (Being share
allotment money made due at discount) |
|
400,000 |
400000 |
|
|
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 first and final call money made
due) |
|
300,000 |
300,000 |
|
|
Bank a/c ..........Dr. (300,000 – 3000) Calls in arrear a/c (100 ×
30) To Share first & final call a/c (Being share first
& final call money received except non-payment) |
|
297000 3000 |
300,000 |
2074 Set B
Q.No. 10 A company offered 5,000 shares of Rs. 100 each for public subscription
payable Rs. 30 on application
Rs.20 on allotment Rs.50
on first and final call. Applications
were received for 6,000 shares and alloted them in the following manner.
|
Group |
Share
applied |
Share
alloted |
|
|
A |
4000 |
4000 |
|
|
B |
2000 |
1000 |
The
board resolved that the excess amount received on application is to be utilized
on allotment and call money. All the money were duly received.
Required: Journal
entries for (a) Application (b) Allotment (c) First and final call
Solution
Analytical
Table
|
Group |
Applied
and money received |
Allotted |
Excess |
Transfer |
Refund |
|
|
Allotment |
First
call |
|||||
|
A |
4,000
× 30 = 120000 |
4000 |
|
|
|
30,000 |
|
B |
2,000
× 30 = 60000 |
1000 |
30000
|
1000
× 20 = 20,000 |
10,000 |
|
|
|
6,000
× 30 = 180000 |
5000 |
30000 |
30000 |
10,000 |
30000 |
A company Limited
Journal Entries
|
Date |
Particulars |
L.F. |
Debit Rs. |
Credit Rs. |
|
a |
Share application: Bank a/c (6,000 × 30) .........................Dr. To Share application a/c (Being share
application money received) |
|
180,000 |
180,000 |
|
|
Share application a/c
.......................Dr. To Share capital a/c (5,000 × 30) To Share allotment a/c To Share first and final call a/c (Being share
application money transferred to share capital, share allotment and share
first and final call) |
|
180,000 |
150,000 20,000 10,000 |
|
b |
Share allotment: Share allotment a/c (5000
× 20) To Share capital a/c (5000 × 20) (Being share
allotment money made due at discount) |
|
100,000 |
100,000 |
|
|
Bank a/c ..........Dr. (100,000 – 20,000) To Share allotment a/c (Being share
allotment money received) |
|
80,000 |
80,000 |
|
c |
Share First and final call: Share First and final
call a/c (5000 × 50) To Share capital a/c (5000 × 50) (Being share first and final call money made
due) |
|
250,000 |
250,000 |
|
|
Bank a/c ..........Dr. (250,000 – 10000) To Share first & final call a/c (Being share first
& final call money received) |
|
240000 |
240000 |
2074 Supp Q.No.
10 A company issued 20,000 shares of Rs. 100 each payable as follows:
On application Rs.20 per share On allotment Rs.30
per share
On first and
final call: Rs. 50
Applications
were received for 40,000 shares. Allotment were made as follows:
To
applicants of 20,000 shares - 10,000 shares
To
applicants of 10,000 shares - 10,000 shares
To
applicants of 10,000 shares - Nil
It was
decided to utilize the excess application money towards allotment. All the
money were duly received.
Required: Journal
entries for (a) Application (b) Allotment (c) First and final call
Solution
Analytical Table
|
Group |
Applied
and money received |
Allotted |
Excess |
Transfer |
Refund |
|
|
Allotment |
First
call |
|||||
|
A |
20,000
× 20 = 400000 |
10,000 |
200,000 |
10,000 × 20 = 200000 |
|
|
|
B |
10,000
× 20 = 200000 |
10,000 |
|
|
|
|
|
C |
10,000
× 20 = 200000 |
|
|
|
|
200000 |
|
|
40,000
× 20 = 800000 |
20,000 |
200000 |
200000 |
|
200000 |
A company Limited
Journal Entries
|
Date |
Particulars |
L.F. |
Debit Rs. |
Credit Rs. |
|
a |
Share application: Bank a/c (40,000 × 20) .........................Dr. To Share application a/c (Being share
application money received) |
|
800,000 |
800,000 |
|
|
Share application a/c
.......................Dr. To Share capital a/c (20,000 × 20) To Share allotment a/c (10,000 × 20 = 200000) To Bank a/c (10,000 × 20 = 200000) (Being share
application money transferred to share capital, share allotment and refunded)
|
|
800,000 |
400,000 200,000 200,000 |
|
b |
Share allotment: Share allotment a/c (20,000
× 30) To Share capital a/c (20,000 × 30) (Being share
allotment money made due) |
|
600,000 |
600,000 |
|
|
Bank a/c ..........Dr. (600,000 – 200,000) To Share allotment a/c (Being share
allotment money received) |
|
400,000 |
400,000 |
|
c |
Share First and final call: Share First and final
call a/c (20000 × 50) To Share capital a/c (20000 × 50) (Being share first and final call money made
due) |
|
1000,000 |
1000,000 |
|
|
Bank a/c ..........Dr. To Share first & final call a/c (Being share first
& final call money received) |
|
1000,000 |
1000,000 |
2070 Set D
Q.No. 10 A company issued 50,000 equity shares of Rs. 100 each payable as
follows:
On application Rs.30 per share On allotment Rs.30
per share
On first and
final call: Rs. 40
Applications
were received for 80,000 shares. Allotment were made as follows:
To
applicants of 40,000 shares - Full
To
applicants of 20,000 shares - 50%
To
applicants of 20,000 shares - Refunded
The
excess application money received on application were utilized towards the sum
due on allotment. All the calls money were duly received, except a shareholder
to whom 1000 shares were forfeited.
Required: Journal
entries for (a) Application (b) Allotment (c) First and final call (d) Forfeiture
Solution
Analytical Table
|
Group |
Applied
and money received |
Allotted |
Excess |
Transfer |
Refund |
|
|
Allotment |
First
call |
|||||
|
A |
40,000
× 30 = 1200000 |
40,000 |
|
|
|
|
|
B |
20,000
× 30 = 600000 |
10,000 |
300000 |
10,000
× 30 = 300000 |
|
|
|
C |
20,000
× 30 = 600000 |
|
|
|
|
600000 |
|
|
80,000
× 30 = 2400000 |
50,000 |
300000 |
300000 |
|
600000 |
A company Limited
Journal Entries
|
Date |
Particulars |
L.F. |
Debit Rs. |
Credit Rs. |
|
a |
Share application: Bank a/c (80,000 × 30) .........................Dr. To Share application a/c (Being share
application money received) |
|
2400,000 |
2400,000 |
|
|
Share application a/c
.......................Dr. To Share capital a/c (50,000 × 30) To Share allotment a/c (10,000 × 30 = 300000) To Bank a/c (20,000
× 30) (Being share
application money transferred to share capital, share allotment and refunded)
|
|
2400,000 |
1500,000 300,000 600,000 |
|
b |
Share allotment: Share allotment a/c (50,000
× 30) To Share capital a/c (50000 × 30) (Being share
allotment money made due) |
|
1500,000 |
1500,000 |
|
|
Bank a/c ..........Dr. (1500,000 – 300,000) To Share allotment a/c (Being share
allotment money received) |
|
1200,000 |
1200,000 |
|
c |
Share First and final call: Share First and final
call a/c (50000 × 40) To Share capital a/c (50000 × 40) (Being share first and final call money made
due) |
|
2000,000 |
2000,000 |
|
|
Bank a/c ..........Dr. (2000,000 – 40000) Calls in arrear a/c
(1,000 × 40) To Share first & final call a/c (Being share first
& final call money received) |
|
196,0000 40,000 |
200,0000 |
|
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 (1,000 × 40) (Being forfeiture of
1000 shares of non-payment of first and final call money) |
|
100000 |
60,000 40,000 |
2075
Set A Q.No. 10 A company issued 4,000 equity shares of Rs. 100 each at premium
of Rs. 10 per share payable as follows:
On
application Rs.20 per share On allotment Rs.50
per share (including premium)
On
first and final call: Rs. 40
Applications
were received for 6,000 shares. These shares were alloted on prorata basis to
the applicants for 5000 shares and remaining were rejected. Excess application
money were utilized towards on allotment. All money were duly received.
Required:
Journal entries for (a) Application (b) Allotment (c) First and final call
2072
Q.No. 2 A company forfeited 100 equity shares of Rs. 100 each for non-payment
of allotment Rs. 30 and first and final call Rs.30 per share. These shares were
reissued @ Rs. 90 per share as fully paid.
Required:
Journal entries for Re-issue and Transfer
A company Limited
Value of
share = 100 × 100 = Rs. 10,000 A company
received money from 1st person = 4,000 A company
received money from 2nd person = 9,000 = 13,000 =
10,000 = 3,000
|
Date |
Particulars |
L.F. |
Debit Rs. |
Credit Rs. |
|
|
Forfeiture of 100 shares: Share capital a/c (100 × 100) .........................Dr. To Share forfeiture a/c (100 × 40) To Calls in arrear a/c (100 × 60) (Being forfeiture of
100 shares for non payment of allotment and first and final call money) |
|
10,000 |
4,000 6,000 |
|
|
Re-issue of 100 shares: Bank a/c
.......................Dr. (100 × 90) Share forfeiture a/c
..............Dr. (100 × 10) To Share capital a/c (100 × 100) (Being re-issue f 100
shares of Rs. 100 each at Rs. 90 each) |
|
9,000 1,000 |
10,000 |
|
|
Transfer to capital reserve Share forfeiture a/c
..............Dr ( 4,000 – 1,000) To Capital reserve a/c (Being share share of
forfeiture amount transfer to capital reserve account) |
|
3,000 |
3,000 |
Share forfeiture =
Cr. Share forfeiture – Dr. Forfeituer =
4,000 – 1,000 = 3,000
= No. of share re-issue (Cr. rate –
Dr. rate)
= 100 (40 – 10) =
100 × 30 = 3,000
2073 Supp Q.No.
8 A company Limited forfeited 200 shares of Rs. 100 each for non-payment of
final call money of Rs. 40 per share. These shares were subsequently reissued @
Rs. 90 per share as fully paid.
Required: Journal
entries for (a) Forfeiture (b) Re-issue (c) Transfer
A company Limited
Journal Entries
2074 Set A
Q.No. 8 The following information relating to shares are given.
(i)
300 shares of
Rs. 100 each forfeited for non payment of Rs. 30 per share on first call and
Rs. 20 per share on final call.
(ii)
The above
shares were re-issued @ Rs. 80 per share as fully paid up.
Required: Journal
entries for (a) Forfeiture (b) Re-issue (c) Transfer
2066 (C) Q.No. 10
A company Limited forfeited 200 shares of Rs. 100 each for non-payment of final
call money of Rs. 40 per share. These shares were subsequently reissued @ Rs.
90 per share as fully paid.
Required: Journal
entries for (a) Forfeiture (b) Re-issue (c) Transfer
2070 Supp Q.No.
11 A company purchased the following assets and liabilities which purchase
price is Rs. 880,000.
Land and
Building Rs. 500,000 Machinery Rs. 300,000
Inventories Rs.
50,000 Creditors Rs. 30,000
Payments of the
above transactions were made by issuing 8,000 shares of Rs. 100 each of 10%
premium.
Required: Journal
entries for purchase of assets and liabilities.
Journal Entries
|
Date |
Particulars |
L.F. |
Debit Rs. |
Credit Rs. |
|
|
Land and Building a/c
.........................Dr. Machinery a/c
....................................Dr. Inventories a/c .........................Dr. Goodwill a/c .........................Dr. To Creditor a/c To Vendor a/c (Being Assets and
liabilities taken over) |
|
500,000 300,000 50,000 60,000 |
30,000 880,000 |
|
|
Vendor a/c
.......................Dr. To Share capital a/c (8000 × 100) To Share premium a/c (8000 × 10) (Being issue of 8,000
shares of Rs. 100 each at 10% premium) |
|
880,000 |
800,000 80,000 |
2071 Set C Q.No.
11 X company Ltd acquired the following assets and liabilities at an agreed
price of Rs. 1100,000.
Machinery Rs. 10,00,000 Debtors
Rs. 50,000
Furniture Rs. 500,000 O/S
payable Rs. 100,000
Bank Loan Rs.
200,000 Inventories Rs.
100,000
Creditors Rs. 150,000
The company
paid the agreed price by issuing shares of Rs. 100 each at a premium 10%.
Required: Journal
entries for purchase of assets and liabilities.
A company Limited
Journal Entries
2071 Set C Q.No.
11 A company Ltd took over the following assets and liabilities of a Vendor
Company at an agreed price of Rs. 1100,000.
Machinery Rs.
10,00,000 Debtors Rs. 50,000
Furniture Rs.
500,000 O/S
payable Rs. 100,000
Bank Loan Rs.
200,000 Inventories Rs.
100,000
Creditors Rs. 150,000
The company
paid the agreed price by issuing shares of Rs. 100 each at a premium 10%.
2060 Q.No. 2 A company issued 8,000 shares of Rs. 100
each at a discount of 10% to purchase the following assets:
Land and Building Rs. 5,00,000 Plant
and Machinery Rs. 200,000
Inventories Rs. 20,000
The company also issued 2,000 shares of Rs. 100 each for
cash at par.
Required: Journal entries for purchase of assets only.
(b) Opening Balance sheet for
above transactions.
Journal Entries
|
Date |
Particulars |
L.F. |
Debit Rs. |
Credit Rs. |
|
|
Land and Building a/c .........................Dr. Plant and Machinery a/c ....................Dr. Inventories a/c
.........................Dr. To Vendor
a/c (Being Assets purchased from vendor) |
|
500,000 200,000 20,000 |
720,000 |
|
|
Vendor a/c .......................Dr. Discount on issue of share a/c
(8000 × 10) To Share capital
a/c (8000 × 100) (Being issue of 8,000 shares to Vendor at 10% discount) |
|
720,000 80,000 |
800,000 |
Opening Balance Sheet
|
Liabilities |
Amount |
Assets |
Amount |
|
Share capital Issued and paid up Capital 10,000 Shares @ Rs. 100 |
10,00,000 |
Fixed Assets Land and Building Plant and Machinery Current assets Inventories Cash at Bank (Balancing fig.) Miscellaneous expenditure Discount on issue of share |
500,000 200,000 20,000 200,000 80,000 |
|
|
10,00,000 |
|
10,00,000 |
2061 Q.No. 2 A Ltd. took over the following
assets and liabilities at an agreed purchase price of Rs. 116,000;
Building Rs. 50,000, Sundry Debtors Rs.
41,800
Stock in trade Rs. 36,000 Cash and Bank Rs. 2,200,
Sundry Creditors Rs. 31,000, Outstanding expenses Rs. 1,000.
Towards this, the company issued 1000 fully
paid equity shares of Rs. 100 each at Rs. 115 per share, as part payment and
the balance amount was paid in cash.
Required: Journal entries. (b) Opening Balance sheet.
Journal
Entries
|
Date |
Particulars |
L.F. |
Debit Rs. |
Credit Rs. |
|
|
Building a/c .........................Dr. Sundry Debtors a/c .............Dr. Stock in trade a/c ..............Dr.
Cash and Bank a/c ...............Dr. Goodwill a/c ........................Dr. To Sundry
Creditors a/c To
Outstanding expense a/c To Vendor
a/c (Being Assets and liabilities took over from vendor) |
|
50,000 41,800 36,000 2,200 |
31,000 1,000 116,000 |
|
|
Vendor a/c .......................Dr. To Share equity capital
a/c (1000 × 100) To Share premium a/c (1000
× 15) To Cash a/c (Being issue of 1,000 equity shares at @ Rs. 115 per shares to
Vendor) |
|
116,000 |
100,000 15,000 1,000 |
Opening Balance Sheet
|
Liabilities |
Amount |
Assets |
Amount |
|
Share capital Issued and paid up Capital 1,000 Shares @ Rs. 100 Reserve and Surplus Share premium Current liabilities Sundry Creditors Outstanding expenses |
100,000 15,000 31,000 1,000 |
Fixed Assets Building Goodwill Current assets Sundry Debtors Stock in trade Cash at Bank |
50,000 18,000 41,800 36,000 1,200 |
|
|
147,000 |
|
147,000 |
2062 Q.No. 3 M Company took over the
following assets and liabilities of N Company at an agreed price of Rs.
400,000;
Liabilities Assets
Sundry Creditors Rs. 60,000, Land & Building Rs. 250,000
Outstanding expenses Rs. 15,000. Sundry Debtors Rs. 80,000,
Overdraft Balance Rs. 10,000, Stock in trade Rs. 20,000,
Payment to this deal will be made by
issuing 2,000 equity shares and 2,000, 7% preference shares of Rs. 100 each.
Required: Journal entries. (b) Opening Balance sheet.
Solution
Journal
Entries
|
Date |
Particulars |
L.F. |
Debit Rs. |
Credit Rs. |
|
|
Land & Building a/c .........................Dr. Sundry Debtors a/c ........................Dr. Stock in trade a/c .........................Dr.
Goodwill a/c ...................................Dr. To Sundry
Creditors a/c To
Outstanding expense a/c To Overdraft
Balance a/c To N Company
a/c (Being Assets and liabilities took over from N Company) |
|
250,000 80,000 20,000 135,000 |
60,000 15,000 10,000 400,000 |
|
|
N Company a/c .......................Dr. To Share equity capital
a/c (2,000 × 100) To 7%, Preference share
capital a/c (2,000 × 100) (Being payment made to N Company by issuing 2,000 equity
shares at @ Rs. 100 and 2,000, 7% Preference share @ Rs.100 each) |
|
400,000 |
200,000 200,000 |
Opening Balance Sheet
|
Liabilities |
Amount |
Assets |
Amount |
|
Share capital Issued and paid up Capital 2,000 equity Shares @ Rs. 100 2,000, 7% Pref. share @ Rs.100 Current liabilities Sundry Creditors Outstanding expenses Overdraft Balance |
200,000 200,000 60,000 15,000 10,000 |
Fixed Assets Land & Building Goodwill Current assets Sundry Debtors Stock in trade |
250,000 135,000 80,000 20,000 |
|
|
485,000 |
|
485,000 |
2063 Q.No. 3 Meena Company purchased
building Rs. 400,000, Vehicles Rs. 80,000 and Sundry debtors Rs. 100,000 and
took over the liabilities of sundry creditors Rs. 90,000 and outstanding
expenese of Rs. 30,000 from Nagendra Company
purchase price was fixed at Rs. 600,000. The amount is paid by issuing equity
shares of Rs. 100 each at Rs. 120.
Required: Journal entries. (b) Opening Balance sheet.
Ans: Amount of goodwill Rs. 140,000; Balance sheet total Rs.
720,000
Solution
2073 Q.No. 11 A Company accepted the
following assets and liabilities at an agreed value of Rs. 11,00,000;
Machinery Rs. 500,000, Land & Building Rs. 1100,000
Debtors Rs. 130,000. Creditors Rs. 300,000,
10% Debenture Rs. 350,000,
The company paid the amount of purchase
price by issuing shares Rs.100 each at premium of 10%.
Required: Journal entries for the purchase of assets and
liabilities taken over.
Solution
Journal
Entries
|
Date |
Particulars |
L.F. |
Debit Rs. |
Credit Rs. |
|
|
Land & Building a/c .........................Dr. Machinery a/c
.........................Dr. Debtors a/c ........................Dr. Goodwill a/c ...................................Dr. To Creditors
a/c To 10%
Debenture a/c To Vendor
a/c (Being Assets and liabilities took over from Vendor Company) |
|
1100,000 500,000 130,000 20,000 |
300,000 350,000 1100,000 |
|
|
Vendor Company a/c .......................Dr. To Share capital
a/c (10,000 × 100) To Share premium a/c (10,000 × 10) (Being issue of 10,000 shares @ Rs.100 at 10% premium to
vendor for the purchase consideration) |
|
1100,000 |
1000,000 100,000 |
No. of shares
issued =
2073 Q.No. 11 A Company accepted the
following assets and liabilities at an agreed value of Rs. 550,000;
Machinery Rs. 200,000, Land & Building Rs. 250,000
Debtors Rs. 200,000. Creditors Rs. 150,000,
Outstanding expenses Rs. 50,000,
The company paid the amount of purchase
price by issuing shares Rs.100 each at premium of 10%.
Required: Journal entries for the purchase of assets and
liabilities taken over.
Solution
Journal
Entries
|
Date |
Particulars |
L.F. |
Debit Rs. |
Credit Rs. |
|
|
Land & Building a/c .........................Dr. Sundry Debtors a/c ........................Dr. Stock in trade a/c .........................Dr.
Goodwill a/c ...................................Dr. To Creditors
a/c To 10%
Debenture a/c To Vendor
a/c (Being Assets and liabilities took over from N Company) |
|
1100,000 500,000 130,000 20,000 |
60,000 15,000 10,000 400,000 |
|
|
N Company a/c .......................Dr. To Share equity capital
a/c (10,000 × 100) To Share premium a/c (10,000 × 10) (Being payment made to N Company by issuing 2,000 equity
shares at @ Rs. 100 and 2,000, 7% Preference share @ Rs.100 each) |
|
1100,000 |
1000,000 100,000 |
No. of shares
issued =
2065 Q.No. 12 M Company issued 3,000, 8%, 6
years debentures of Rs.100 each at a discount of 5% and redeemable at a premium
of 10%.
Required: Journal entries for issue and redemption of
debentures.
Journal Entries
|
Date |
Particulars |
L.F. |
Debit Rs. |
Credit Rs. |
|
|
At the time
of issue of Debenture: Bank a/c .........................Dr. (3,000 × 95) Discount on issue of debenture a/c Dr. (3,000 × 5) Loss on issue of debenture a/c Dr. (3,000 × 10) To 8%
Debenture a/c (3,000 × 100) To Premium
on redemption of debenture a/c (3,000 × 10) (Being issue of 3,000, 8% debentures at 5% discount and
redeemable at 10% premium) |
|
285,000 15,000 30,000 |
300,000 30,000 |
|
|
At the time
of redemption of Debenture: 8% Debenture a/c (3,000
× 100) Premium on redemption of debenture a/c (3,000 × 10) To Bank a/c (3,000 × 110) (Being redemption of 8% debentures at premium 10%) |
|
300,000 30,000 |
330,000 |
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