12th Class
Accountancy
Sample Paper
Accountancy - Sample Paper-10
question_answer
Strongman Ltd company was registered with an authorised capital of Rs. 2,00,000 of Rs. 10 per equity share. Out of these, 6,000 equity shares issued as fully paid to the vendor for the purchase of building, 8,000 equity shares were subscribed for by the public and during the first year Rs. 5 per equity share were called-up, payable as Rs. 2 on application, Rs. 1 on allotment, Rs. 1 on first call and Rs. 1 on second call. The amount received in respect of these shares were: On 6,000 equity shares, the full amount has been paid; on 1,250 shares, Rs. 4 per equity share; on 500 shares, Rs. 3 per equity share and on 250 shares, Rs. 2 per equity share. The directors forfeited 750 equity shares on which less than Rs. 4 per equity share had been paid. Show the journal entries in the books of the company. Or Sahni Tyres and Company Ltd issued applications for 1,00,000 equity shares of Rs. 10 each at a premium of ? 3 per share. The amount was payable as follows
(i) On application Rs. 2
(ii) On allotment Rs. 5 (including premium)
(iii) Balance on the first and final call.
Applications were received for 1,50,000 shares. Allotment was made on pro-rata basis to all applicants. Amar, who had applied for 300 shares failed to pay allotment and call money. His shares were forfeited after first and final call. Of these, 170 shares were re-issued to Amit at Rs. 9 per share fully paid. Pass the necessary journal entries to show the above transactions. Show your working clearly.
Answer:
JOURNAL
Date
Particulars
LF
Amt (Dr)
Amt (Cr)
Building A/c
Dr
60,000
To Vendor A/c
60,000
(Being the building purchased)
Vendor A/c \[\left( 6,000\times 10 \right)\]
Dr
60,000
To Share Capital A/c
60,000
(Being the issue of 6,000 shares of Rs. 10 each as fully paid in payment of building purchased)
Bank A/c \[\left( 8,000\times 2 \right)\]
Dr
16,000
To Share Application A/c
16,000
(Being the amount received in respect of application money on 8,000 shares @ Rs. 2 per share)
Share Application A/c
Dr
16,000
To Share Capital A/c \[\left( 8,000\times 2 \right)\]
16,000
(Being the transfer of application money to share capital account)
Share Allotment A/c
Dr
8,000
To Share Capital A/c \[\left( 8,000\times 1 \right)\]
8,000
(Being the amount due on allotment of 8,000 shares @ Rs. 1 per share as per resolution of the board of directors)
Bank A/c \[\left( 7,750\times 1 \right)\] (WN 1)
Dr
7,750
To Share Allotment A/c
7,750
(Being the amount received on the allotment of 7,750 shares @ Rs. 1 per share)
Share First Call A/c
Dr
8,000
To Share Capital A/c \[\left( 8,000\times 1 \right)\]
8,000
(Being the amount due on first call of 8,000 shares @ Rs. 1 per share as per resolution of the board of directors)
Bank A/c \[\left( 7,250\times 1 \right)\]
Dr
7,250
To Share First Call A/c
7,250
(Being the amount received on the first call on 7,250 shares @ Rs. 1 per share)
Share Second Call A/c
Dr
8,000
To Share Capital A/c \[(8,000\times 1)\]
8,000
(Being the amount due on second call on 8,000 shares @ Rs. 1 per share as per resolution of the board of directors)
Bank A/c \[(6,000\times 1)\]
Dr
6,000
To Share Second call A/c
6,000
(Being the amount received on the second call on 6,000 shares @ Rs. 1 per share )
Share Capital A/c \[(750\times 5)\]
Dr
3,750
To Forfeited Shares A/c (WN 4)
2,000
To Share Allotment A/c \[(250\times 1)\]
250
To Share First Call A/c \[[(500\times 1)+(250\times 1)]\]
750
To Share Second call A/c \[[(500\times 1)+(250\times 1)]\]
750
(Being 750 shares forfeited as per board?s resolution)
Working Notes 1. A holder of 250 equity shares paid only application money. He has not paid allotment money and call money. Therefore, allotment money has been received on 7,750 shares (8,000 ? 250) @ Rs. 1 each, i.e., Rs 7,750. 2. First call money has not been paid by the holder of 250 equity shares and the holder of 500 equity shares. In total, first call money has not been received on 750 equity shares. 3. Second call money has not been paid by the holder of 250 equity shares, holder of 500 equity shares and holder of 1,250 equity shares. In total, second call money has not been received on 2,000 equity shares. Statement Showing Money Received and Not Received
Shares
Application (Rs. 2)
Allotment (Rs. 1)
First Call (Rs. 1)
Second Call (Rs. 1)
6,000
√
√
√
√
1,250
√
√
√
×
500
√
√
×
×
250
√
×
×
×
Money Received
\[8,000\times 2=Rs.\,16,000\]
\[7,750\times 1=Rs.\,7,750\]
\[7,250\times 1=Rs.\,7,250\]
\[6,000\times 1=Rs.\,6,000\]
Money Not Received
-
\[250\times 1=Rs.\,250\]
\[750\times 1=Rs.\,750\]
\[2,000\times 1=Rs.\,2,000\]
√ - Money received, × - Money not received 4. Amount Forfeited
(i)
For 250 equity shares, application money @ Rs. 2 per equity share
500
(ii)
For 500 equity shares, application money @ Rs. 2 per equity share
And allotment money @ Rs. 1 per equity share
1,500
Rs. 2,000
Note: Unless and until the forfeited shares are re-issued, the balance on the forfeited shares account will be shown as a separate item in the balance sheet under the heading of ?share capital?. Or Journal
Date
Particulars
LF
Amt (Dr)
Amt (Cr)
Bank A/c \[\left( 1,50,000\times 2 \right)\]
Dr
3,00,000
To Equity Share Application A/c
3,00,000
(Being application money on 1,50,000 shares received @ Rs. 2 per share)
Equity Share Application A/c
Dr
3,00,000
To Equity Share Capital A/c \[\left( 1,00,000\times 2 \right)\]
2,00,000
To Equity Share Allotment A/c
1,00,000
(Being application money on 1,00,000 shares @ Rs. 2 per share transferred and on 1,00,000 shares adjusted on allotment)
Equity Share Allotment A/c
Dr
5,00,000
To Equity Share Capital A/c \[\left( 1,00,000\times 2 \right)\]
2,00,000
To Securities Premium Reserve A/c \[\left( 1,00,000\times 3 \right)\]
3,00,000
(Being allotment money transferred on 1,00,000 shares at Rs. 5 including premium of Rs. 3 per share)
