12th Class
Accountancy
Sample Paper
Accountancy - Sample Paper-3
question_answer
Kanso Ltd issued 10,00,000 shares of Rs. 10 each at a premium of Rs. 4 per share payable as follows: Rs. 4 on application Rs. 6 on allotment Rs. 4 on call Applications were received for 14,00,000 shares and pro-rata allotment was made as follows: To the applicants of 10,00,000 shares, 8,00,000 shares were issued and for the rest, 2,00,000 shares were issued. All money due were received except the allotment and call money from Viresh who had applied for 15,000 shares (out of the group of 10,00,000 shares). All his shares were forfeited. 7,500 of the forfeited shares were re-issued for Rs. 8 per share fully paid-up. Pass necessary Journal entries for the above transactions. Or Ram Ltd invited applications for 8,00,000 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 7,70,000 shares were received. Shares were allotted to all the applicants. Sumit to whom 70,000 shares were allotted failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards the first and final call was made. Sohail, the holder of 5,000 shares failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares 10,000 shares were reissued at Rs 50 per share fully paid-up. The reissued shares included all the shares of Sohail. Pall necessary journal entries for the above transaction in the books of Ran Ltd.
Answer:
JOURNAL
Date
Particulars
LF
Amt (Dr)
Amt (Cr)
Bank A/c
Dr
56,00,000
To Share Application A/c
56,00,000
(Being application money received)
Share Application A/c
Dr
56,00,000
To Share Capital A/c
40,00,000
To Share Allotment A/c \[(80,000\,Shares\,\times \,Rs.\,4)\]
16,00,000
(Being application money adjusted)
Share Allotment A/c
Dr
60,00,000
To Share Capital A/c
20,00,000
To Securities Premium Reserve A/c
40,00,000
(Being allotment due)
Bank A/c
Dr
43,40,000
To Share Allotment A/c (WN 3)
43,40,000
(Being allotment money received)
Share First and Final Call A/c
Dr
40,00,000
To Share Capital A/c
40,00,000
(Being first and final call due)
Bank A/c
Dr
39,52,000
To Share First and Final Call A/c
39,52,000
(Being first and final call received)
Share Capital A/c
Dr
1,20,000
Securities Premium Reserve A/c
Dr
48,000
To Share Allotment A/c
60,000
To Share First and Final Call A/c
48,000
To Share Forfeiture A/c
60,000
(Being share forfeited)
Bank A/c
Dr
60,000
Share Forfeiture A/c
Dr
15,000
To Share Capital A/c
75,000
(Being re-issue of Shares)
Share Forfeiture A/c
Dr
22,500
To Capital Reserve A/c
22,500
(Being proportionate amount of share forfeiture account transferred to capital reserve account)
Working Notes 1. Excess amount received from Viresh on application: Viresh has applied for 15,000 shares He must have been allotted\[\,\left( \frac{8,00,000}{10,00,000}\times 15,000 \right)\,=\,12,000\,shares\] Excess application money received form Viresh = 15,000 shares ? 12,000 shares \[=\,3,000\,shares\times Rs.\,4\,=\,Rs.\,12,000\]
Amt (Rs.)
2.
Amount due from Viresh on Allotment
\[12,000\,shares\,\times \,Rs.\,6\]
72,000
(-) Excess received form Viresh on application
(12,000)
Amount not received from Viresh on Allotment
60,000
3.
Total amount due on allotment : \[10,00,000\times \,Rs.\,6\]
