Page 35 - DEBK12

Chapter 8 . Company Accounts—Accounting for Share Capital 8.25

Note to Accounts
1. Share Capital `
Authorised Capital
... Equity Shares of ` 100 each ...
Issued Capital
10,000 Equity Shares of ` 100 each 10,00,000
Subscribed Capital
Subscribed and fully paid-up
8,800 Equity Shares of ` 100 each 8,80,000
Add: Forfeited Shares A/c (200 × ` 50) 10,000
8,90,000

Unsolved Questions

1. SRCC Ltd. invited applications for 2,00,000 equity shares of ` 10 each payable as ` 3 on application, ` 4
on allotment and ` 3 on call. Applications for 6,55,000 shares were received and the allotment was made
as follows:
Category Shares Applied Shares Allotted

A 50,000 50,000
B 50,000 40,000
C 35,000 10,000
D 90,000 20,000
E 1,00,000 20,000
F 3,30,000 60,000

Prepare the statement showing the adjustment of Application money received:
(a) if excess Application money was adjusted towards sum due on allotment,
(b) if excess Application money was adjusted towards other sum due on shares.
[Surplus Refunded (a): C—` 35,000; D—` 1,30,000; E—` 1,60,000; F—` 5,70,000.
Surplus Refunded (b): C—` 5,000; D—` 70,000; E—` 1,00,000; F—` 3,90,000.]

2. Z Ltd. forfeited 300 shares of Ankit who had applied for 500 shares on account of non-payment of
allotment money ` 5 (including ` 2 premium) and first call ` 2 per share. Only ` 3 per share was received
with application. Out of these 200 shares were reissued to Sanjay as fully paid shares of ` 10 each for
` 8 per share. Pass necessary Journal entries relating to forfeiture and reissue of shares.
[Capital Reserve—` 600.]
3. Sangita Ltd. invited application for issuing 10,000 Equity Shares of ` 100 each. The amount was payable
as follows:
On application ` 30 per share;
On allotment ` 20 per share;
On First and Final Call Balance.