12th Class
Accountancy
Sample Paper
Accountancy - Sample Paper-1
question_answer
DEF Company Ltd offered for public subscription 10,000 shares of Rs. 10 each at Rs. 11 per share. Money was payable as follows: Rs. 3 on application; Rs. 4 on allotment (including premium); Rs. 4 on first and final call. Applications were received for 12,000 shares and the directors made pro-rata allotment. Akansha, an applicant for 120 shares, could not pay the allotment and call money and Shalu, a holder of 200 shares, failed to pay the call. All these shares were forfeited. Out of the forfeited shares, 150 shares (the whole of Akansha shares being included) were issued at Rs. 8 per share. Record journal entries for the above transactions and prepare the share forfeited account. Or Krishna Ltd issued 40,000 equity shares of Rs. 10 each at a premium of Rs. 2.50 per share. The amount was payable as follows: On application Rs. 2 per share; on allotment Rs. 4.50 per share (including premium); and on call Rs. 6 per share. Owing to heavy subscription the allotment was made on pro-rata basis as follows: (i) Applicants for 20,000 shares were allotted 10,000 shares. (ii) Applicants for 56,000 shares were allotted 14,000 shares. (iii) Applicants for 48,000 shares were allotted 16,000 shares. It was decided that the excess amount received on applications would be utilized on allotment and the surplus would be refunded. Riya, to whom 1,000 shares were allotted and who belongs to category (i), failed to pay allotment money. Her shares were forfeited after the call. Pass the necessary journal entries in the books of Krishna Ltd for the above transactions.
Answer:
JOURNAL
Date
Particulars
LF
Amt (Dr)
Amt (Cr)
Bank A/c \[\left( 12,000\times 3 \right)\]
Dr
36,000
To Share Application A/c
36,000
(Being application money received on 12,000 shares @ Rs. 3 per share)
Share Application A/c
Dr
36,000
To Share Capital A/c \[\left( 10,000\times 3 \right)\]
30,000
To Share Allotment A/c \[\left( 2,000\times 3 \right)\]
6,000
(Being transfer of application money to share capital account on 10,000 shares and the balance to allotment account)
To Share Capital A/c \[\left( 150\times 10 \right)\]
1,500
(Being re-issue of 150 forfeited shares)
Share Forfeiture A/c
Dr
360
To Capital Reserve A/c (WN 4)
360
(Being profit on forfeiture and re-issue of 150 forfeited shares transferred)
DrShare Forfeiture AccountCr
Particulars
Amt (Rs.)
Particulars
Amt (Rs.)
To Share Capital A/c
300
By Share Capital A/c
1,560
To Capital Reserve A/c
360
To Balance c/d
900
1,560
1,560
Working Notes Number of Shares Allotted to Akansha\[=120\times \frac{10,000}{12,000}=100\,Shares\] 1. Amount received on allotment has been calculated as follows:
Amt (Rs.)
Total money due on 10,000 shares @ Rs. 4 per share
40,000
(-) Application money received on 2,000 shares adjusted against allotment money
(6,000)
Net amount due on allotment
34,000
(-) Amount due from an applicant not received for 120 shares who
was allotted only 100 shares\[\left( \frac{100}{10,000}\times 34,000 \right)\]
(340)
Amount received on allotment
33,660
2. Securities premium account has been debited only with Rs. 100 relating to 100 shares allotted to Akansha from whom the allotment money (including premium) has not been received. 3. Shares forfeited account represents the money received on forfeited shares excluding share premium. This has been worked-out as follows:
Akansha has paid application money @ Rs. 3 per share on 120 shares \[\left( 120\times 3 \right)\]
360
(+) Shalu has paid for captial @ Rs. 6 per share on 200 shares in (application and allotment money excluding premium i.e.\[200\times 6\])
1,200
Total amount received
Rs. 1,560
4.
Amount received from Akansha on 100 shares forfeited which have been reissued
360
(+) Amount received from Shalu on 50 shares forfeited which have been reissued
360
\[\left( \frac{50}{200}\times 1,200 \right)\]
Total amount received on 150 shares which have been fofeited and later reissued
660
(-) Discount on reissue of forfeited shares \[\left( 150\times 2 \right)\]
(300)
Amount of capital profit transferred to capital reserve
Rs. 360
Or JOURNAL
Date
Particulars
LF
Amt (Dr)
Amt (Cr)
Bank A/c \[(1,24,000\times 2)\]
Dr
2,48,000
To Equity Share Application A/c
2,48,000
(Being the application money received @ Rs. 2 Per share on 1,24,000 shares)
Equity Share application A/c
Dr
2,48,000
To Equity Share Capital A/c\[(40,000\times 2)\]
80,000
To Equity Share Allotment A/c
1,47,000
To Bank A/c
21,000
(Being the application money adjusted)
Equity Share Allotment A/c \[(40,000\times 4.5)\]
Dr
1,80,000
To Equity Share Capital A/c\[(40,000\times 2)\]
80,000
To securities Premium Reserve A/c\[(40,000\times 2.5)\]
