12th Class
Accountancy
Sample Paper
Accountancy - Sample Paper-2
question_answer
Raja Ltd invited applications for 1,00,000 equity shares of Rs. 10 each. The shares were issued at a premium of Rs. 5 per share. The amount was payable as follows: On application and allotment Rs. 8 per share (including premium Rs. 3). The balance including premium on the first and final call. Applications for 1,50,000 shares were received. Applications for 10,000 shares were rejected and pro-rata allotment was made to the remaining applicants on the following basis:
(i) Applicants for 80,000 shares were allotted 60,000 shares.
(ii) Applicants for 60,000 shares were allotted 40,000 shares.
P, who belonged to the first category and was allotted 300 shares, failed to pay the first call money. Q, who belonged to the second category and was allotted 200 shares, also failed to pay the first call money. Their shares were forfeited. The forfeited shares were re-issued @ Rs. 12 per share fully paid-up. Pass necessary journal entries and prepare cash book. Or CANDID Ltd invited applications for issuing 75,000 equity shares of Rs. 100 each at a premium of Rs. 30 per share. The amount was payable as follows: On application and allotment - Rs. 85 per share (including premium) On first and final call - the balance account applications for 1,27,500 shares were received. Applications for 27,500 shares were rejected and shares were allotted on pro-rata basis to the remaining applicants. Excess money received on application and alloment was adjusted towards sums due on first and final call. The calls were made. A shareholder, who applied for 1,000 shares, failed to pay the first and final call money. His shares were forfeited. All the forfeited shares were reissued at Rs. 150 per share fully paid-up. Pass necessary journal entries for the above transactions in the books of CANDID Ltd.
Answer:
Dr Cash Book Cr
Particulars
Amt (Rs.)
Particulars
Amt (Rs.)
To Share Application and Allotment A/c (Application and allotment money on 1,50,000 share)
12,00,000
By Share Application and Allotment A/c (Refund on 10,000 share applications @ Rs. 8 Per share)
80,000
To Share First and final Call A/c (WN 3)
3,78,100
By Balance c/d
15,04,100
To Share Capital A/c (Reissue of 500 shares)
5,000
To Securities Premium Reserve A/c
1,000
15,84,100
15,84,100
JOURNAL
Date
Particulars
LF
Amt (Rs.)
Amt (Rs.)
Share Application and Allotment A/c
Dr
11,20,000
To Share Capital A/c v\[(1,00,000\times Rs.\,5)\]
5,00,000
To Securities Premium Reserve A/c \[(1,00,000\times Rs.\,3)\]
3,00,000
To Calls-in-Advance A/c \[(40,000\times Rs.\,8)\]
3,20,000
(Being the transfer of application and allotment money to share capital account and surplus transferred to calls-in advance account)
Share First and Final Call A/c \[(1,00,000\times 7)\]
Dr
7,00,000
To Share Capital A/c \[(1,00,000\times 5)\]
5,00,000
To Securities Premium Reserve A/c \[(1,00,000\times 2)\]
2,00,000
(Being the first and final call due on 1,00,000 shares)
Calls- in-Advance A/
Dr
3,20,000
To Share First and Final Call A/c
3,20,000
(Being calls-in-advance adjusted to share first and final calls account)
(Being the forfeiture of 300 shares of X and 200 shares of Y for non-payment of call money)
Forfeited Shares A/c
Dr
4,100
To Capital Reserve A/c (WN 4)
4,100
(Being the balance of shares forfeited transferred to capital reserve)
Working Notes 1. Number of shares applied by X \[=80,000/60,000\times 300=400\,Shares\] Number of shares applied by Y\[=60,000/40,000\times 200=300\,Shares\] 2. The Surplus application and allotment money paid by X and Y which is adjusted on the first and the final call \[=200\times Rs.\,8\,=Rs.\,1,600.\] 3
Calculation of First and Final Call Money received
Amt (Rs.)
Amount Due on First and final Call \[(1,00,000\times Rs.\,7)\]
7,00,000
(-) Calls-in-Advance
(3,20,000)
3,80,000
(-) Not Paid by X and Y \[(500\times Rs.\,7-Rs.\,1,600)\]
(1,900)
3,78,100
4.
Calculation of Amount forfeited on 500 Shares
Amt (Rs.)
X applied for 400 shares and Paid @ Rs. 8
3,200
(-) Transferred to Securities Premium Reserve on 300 Share @ Rs. 3
(900)
2,300
Y applied for 300 Shares and Paid @ Rs. 8
2,400
(-) Transferred to Securities of Premium Reserve on 200 Shares Allotted to Him Rs. 3
(600)
1,800
Amount to be forfeited
4,100
Or JOURNAL
Date
Particulars
LF
Amt (Dr)
Amt (Cr)
Bank A/c \[(1,27,500\times Rs.\,85)\]
Dr
1,08,37,500
To Equity Share Application A/c
1,08,37,500
(Being the application and allotment money received for 1,27,500 shares @ Rs. 85 per share)
Equity Share Application A/c
Dr
1,08,37,500
To Equity Share Capital A/c \[(75,000\times Rs.\,55)\]
41,25,000
To Securities Premium Reserve A/c \[(75,000\times Rs.\,30)\]
22,50,000
To Equity Share First and Final Call A/c \[(25,000\times 85)\]
21,25,000
To Bank A/c \[(27,000\times Rs.\,85)\]
23,37,500
Equity Share First and Final Call A/c \[(75,000\times Rs.\,45)\]
Dr
33,75,000
To Equity Share Capital A/c
33,75,000
(Being the first and final call due on 75,000 shares @ Rs. 45 per share)
Bank A/c (WN 2)
Dr
12,37,500
To Equity Share First and Final Call A/c
12,37,500
(Being the amount due on shares first and final call received except on 750 shares)
Equity Share Capital A/c \[(750\times Rs.\,100)\]
Dr
75,000
To Equity Share First and Final Call A/c
12,500
To Forfeited Shares A/c
62,500
(Being 750 shares forfeited for non-payment of first and final call)
Bank A/c \[(750\times Rs.\,150)\]
Dr
1,12,500
To Equity Share Capital A/c
75,000
To Securities Premium Reserve A/c
37,500
(Being 750 forfeited shares reissued @ Rs. 150 per shares as fully paid-up)
Forfeited Shares A/c
Dr
62,500
To Capital Reserve A/c
62,500
(Being the amount of forfeited shares credited to capital reserve upon reissue)
