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Chapter 8 . Company Accounts—Accounting for Share Capital 8.27
Pass necessary Journal entries in the books of Gupta Ltd. for the above transactions. (Foreigh 2012)
[Ans.: Amount Forfeited—` 16,000 (Shiva—` 6,000 + Girdhar—` 10,000); Amount
transferred to Capital Reserve—` 14,000; Money Received on Allotment—` 2,88,000.]
7. A Co. Ltd. offered to the public 20,000 Equity Shares of ` 100 each at a premium of ` 10 per share. The
payment was to be as:
On application — ` 20 per share,
On allotment — ` 40 per share (including premium),
On first call — ` 25 per share,
On second and final call — ` 25 per share.
Applications were received for 35,000 shares. Applications for 10,000 shares were rejected. Applicants for
15,000 shares were allotted 10,000 shares and remaining applications were accepted in full. The Directors
made both the calls. One shareholder holding 500 shares failed to pay the two calls and as a consequence
his shares were forfeited. 200 of these shares were reissued as fully paid-up at ` 80 per share.
Prepare Cash Book, Journal and the Balance Sheet on the basis of information given above.
[Ans.: Capital Reserve—` 6,000; Balance Sheet Total—` 21,91,000.]
8. Veer Ltd. invited applications for issuing 1,00,000 Equity Shares of ` 500 each at a premium of ` 100 per
share. The amount was payable as:
On application — ` 200 per share,
On allotment — ` 300 per share (including premium),
On first and final call — Balance of the amount.
Applications for 2,00,000 shares were received. Applications for 50,000 shares were rejected and the
application money was refunded. Pro rata allotment was made to the remaining applicants. Amount
overpaid with application was adjusted towards sums due on allotment.
All calls were made and were duly received except the first and final call on 100 shares allotted to Vasu.
These shares were forfeited. The forfeited shares were reissued to Ravi for ` 60,000 as fully paid-up.
Pass necessary Journal entries in the books of the company for the above transactions. (Delhi 2009 C)
[Ans.: Amount forfeited—` 40,000; Amount transferred to Capital Reserve—` 40,000.]
9. Bhamashah Company Limited made an issue of 1,00,000 Equity Shares of ` 10 each at a premium of 20%
payable as follows:
On application — ` 2.50 per share,
On allotment — ` 4.50 per share, and
On first and final call — Balance.
Applications were received for 2,00,000 Equity Shares and the Directors made pro rata allotment.
Ranu who had applied for 800 shares did not pay the allotment and final call money, as a result his shares
were forfeited. Later on 80% of the forfeited shares were reissued at ` 8 per share as fully paid-up.
Pass necessary Journal entries for the above mentioned transactions in the books of the company.
(Delhi 2011 C)
[Ans.: Capital Reserve—` 960.]
10. A company issued for public subscription 50,000 Equity Shares of ` 10 each at a premium of ` 2 per share,
payable as under:
On application — ` 2 per share,
On allotment — ` 5 per share,
On first call — ` 2 per share,
On final call — ` 3 per share.