Double Entry Book Keeping Ts Grewal Vol. II 2019 for Class 12 Commerce Accountancy Chapter 8 - Accounting For Share Capital

Page No 8.113:

Question 1:

Gopal Ltd. was registered with an authorised capital of ₹ 50,00,000 divided into Equity Shares of ₹  100 each . The company offered for public subscription all the shares . Public applied for 45,000 shares and allotment was made to all the applicants. All the calls were made and were duly received except the final call of ₹  20 per share on 500 shares.
Prepare the Balance Sheet of the company showing the different types of share capital.

ANSWER:

Gopal Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I.  Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	44,99,000
2. Non-Current Liabilities
3. Current Liabilities
Total		44,99,000
II.  Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	2	44,99,000
Total		44,99,000

NOTES TO ACCOUNTS

Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	5,00,000 equity shares of Rs 10 each		50,00,000
	Issued Share Capital
	5,00,000 equity shares of Rs 10 each		50,00,000
	Subscribed, Called-up and Paid-up Share Capital
	4,50,000 equity shares of Rs 10 each	45,00,000
	Less: Calls in Arrears (500 shares × Rs 2)	(1,000)	44,99,000
2	Cash and Cash Equivalents
	Cash at Bank		44,99,000

Page No 8.114:

Question 2:

Himmat Ltd has authorised share capital of ₹  50,00,000 divided into 5,00,000 Equity Shares of ₹  10 each . It has existing issued and paid up capital of ₹  5,00,000. It further issued to public 1,50,000 Equity Shares at par for subscription payable as under:

On Application:	₹ 3
On Allotment:	₹ 4 and
On Call:	Balance Amount.

The issue was fully subscribed and allotment was made to all the applicants . Call was made during the year and was duly received.
Show share capital of the company in the Balance Sheet of the Company.

ANSWER:

​

Balance Sheet of Himmat Ltd.
Particulars	Note No.	Amount  (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	20,00,000
Total		20,00,000
II. Assets
2. Current Assets
Cash and Cash Equivalents	2	20,00,000
Total		20,00,000

 

Notes to Accounts
Particulars		Amount (Rs)
1. Share Capital
Authorised Share Capital
5,00,000 Equity Shares of Rs 10 each		50,00,000
Issued Share Capital
50,000 Equity Shares of Rs 10 each	5,00,000
1,50,000 Equity Shares of Rs 10 each	15,00,000	20,00,000
Subscribed and Paid-up Share Capital
50,000 Equity Shares of Rs 10 each	5,00,000
1,50,000 Equity Shares of Rs 10 each	15,00,000	20,00,000
2. Cash and Cash Equivalents
Bank		20,00,000

Page No 8.114:

Question 3:

Lennova Ltd. has authorised share capital of ₹ 1,00,00,000  divided into 1,00,000 Equity Shares of ₹  100 each . It has existing issued and paid up capital of ₹  25,00,000. It further issued to public 25,000 Equity Shares at a premium of 20% for subscription payable as under:

On Application:	₹ 30
On Allotment:	₹ 60 and
On Call:	Balance Amount.

The issue was fully subscribed and allotment was made to all the applicants . The company did not make the call during the year.
Show share capital of the company in the Balance Sheet of the Company.

ANSWER:

Balance Sheet of Lennova Ltd.
Particulars	Note No.	Amount  (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	42,50,000
b. Reserves and Surplus	2	5,00,000
Total		47,50,000
II Assets
2. Current Assets
Cash and Cash Equivalents	3	47,50,000
Total		47,50,000

 

Notes to Accounts
Particulars		Amount (Rs)
1. Share Capital
Authorised Share Capital
1,00,000 Equity Shares of Rs 100 each		1,00,00,000
Issued Share Capital
25,000 Equity Shares of Rs 100 each	25,00,000
25,000 Equity Shares of Rs 100 each	25,00,000	50,00,000
Subscribed Share Capital
Subscribed and Fully paid-up
25,000 Equity Shares of Rs 100 each		25,00,000
Subscribed but not fully paid-up
25,000 Equity Shares of Rs 100 each, 70 called-up		17,50,000
2. Reserves and Surplus
Securities Premium Reserve (25,000 shares @ Rs 20 per share)		5,00,000
3. Cash and Cash Equivalents
Bank		47,50,000

Page No 8.114:

Question 4:

Star Ltd. is registered with capital of ₹ 50,00,000 divided into 50,000 equity shares of ₹ 100 each, The Company issued 25,000 equity shares for subscription. Subscription was received for 23,750 shares and all the due amount was duly received, except the first and final call of ₹ 20 per share on 600 shares. Show the 'Share Capital' in the Balance Sheet of the company.

ANSWER:

In the books of Star Ltd. An Extract of Balance Sheet As at ……….
Particulars	Note No.	Amount (₹)
I. Equity And Liabilities Shareholders’ Funds
Share Capital	1	23,63,000

 

Notes to Accounts:
Note No.	Particulars		Amount (₹)
1.	Share Capital
	Authorised Capital
	50,000 equity shares of ₹100 each		50,00,000
	Issued Capital
	25,000 shares of ₹100 each		25,00,000
	Subscribed Capital
	23,750 shares of ₹100 each	23,75,000
	Less: Calls-in-Arrears (600 × 20)	12,000	23,63,000
			23,63,000

Page No 8.114:

Question 5:

Moneyplus company issued 2,50,000 Equity Shares of ₹ 10 each to public. All amounts have been received in lump sum. Pass necessary Journal entries in the books of the company.

ANSWER:

Authorised Capital 2,50,000 equity shares of Rs 10 each

Issued and Subscribed Capital 2,50,000 shares

In the books of Moneyplus Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
	Bank A/c	Dr.		25,00,000
	To Equity Share Application A/c				25,00,000
	(Share application money received for 2,50,000 equity shares of Rs 10 each)
	Equity Share Application A/c	Dr.		25,00,000
	To Equity Share Capital A/c				25,00,000
	(Share application of 2,50,000 equity shares of Rs 10 each transferred to Equity Share Capital Account )

Page No 8.114:

Question 6:

The authorised capital of ₹ 16,00,000 of Bharat Ltd. is divide into 1,60,000 Equity Shares of ₹ 10 each. Out of these shares, 80,000 Equity Shares were issued at par to public for subscription. The full nominal value is payable on application. All the shares were subscribed by the public and total amount was paid for. Pass necessary journal entries in the books of the company.

ANSWER:

Authorised Capital 1,60,000 equity shares of ₹ 10 each

Issued and Subscribed Capital 80,000 equity shares

Books of Bharat Limited Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount  (₹)
	Bank A/c	Dr.		8,00,000
	To Equity Share Application A/c				8,00,000
	(Share application money received for 80,000 Equity Shares of ₹ 10 each)
	Equity Share Application A/c	Dr.		8,00,000
	To Equity Share Capital A/c				8,00,000
	(Share application of 80,000 shares of ₹ 10 each transferred to Equity Share Capital Accounts)

Page No 8.114:

Question 7:

Hema Ltd. invited applications for 10,000 shares of ₹ 100 each payable as follows:
₹  20 on application, ₹ 30 on allotment, ₹ 20 on first call and the balance on final call.
All the shares were applied and allotted. All the money was duly received.
You are required to Journalise these transactions.

ANSWER:

Issued and Subscribed Capital 10,000 shares of ₹ 100 each
Payable as:
 

₹	20	on application
₹	30	on allotment
₹	20	on first call
₹	30	on final call
	100

 

Books of Hema Limited Journal
Date	Particulars			L.F.	Debit Amount (₹)	Credit Amount (₹)
	Bank A/c	Dr.			2,00,000
	To Share Application A/c					2,00,000
	(Share application money received for 10,000 shares at ₹ 20 per share)
	Share Application A/c	Dr.			2,00,000
	To Share Capital A/c					2,00,000
	(Share application of 10,000 shares of ₹ 20 each transferred to Share Capital)
	Share Allotment A/c	Dr.			3,00,000
	To Share Capital A/c					3,00,000
	(Share allotment due on 10,000 shares at ₹ 30 per share)
	Bank A/c	Dr.			3,00,000
	To Share Allotment A/c					3,00000
	(Share allotment money received for 10,000 Shares at ₹ 30 per share)
	Share First Call A/c	Dr.			2,00,000
	To Share Capital A/c					2,00,000
	(Share first call due on 10,000 shares at ₹ 20 per share)
	Bank A/c	Dr.			2,00,000
	To Share First call A/c					2,00,000
	(Share first call received on 10,000 shares at ₹ 20 per share)
	Share Final Call A/c		Dr.		3,00,000
	To Share Capital A/c					3,00,000
	(Share Final call due on 10,000 shares at ₹30 per shares)
	Bank A/c		Dr.		3,00,000
	To Share Final Call A/c					3,00,000
	(Share final call received on 10,000 shares at ₹ 30 per share)

Page No 8.114:

Question 8:

Marigold Ltd . was registered with the authorized capital of ₹ 3,00,000 divided into 3,000 shares of ₹ 100 each, which were offered to the public . Amount payable as ₹ 30  per share on application , ₹ 40 per share on allotment and ₹ 30 per share on first and final call . These shares were fully subscribed and all money  was dully received . Prepare journal and Cash Book.

ANSWER:

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
	Share Application A/c	Dr.		90,000
	To Share Capital				90,000
	(Share application money transferred)
	Share Allotment A/c	Dr.		1,20,000
	To Share Capital A/c				1,20,000
	(Share allotment money transferred)
	Share First and Final Call A/c	Dr.		90,000
	To Share Capital A/c				90,000
	(Share first and final call money transferred)

 

Cash Book
Dr.					Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
Share Application A/c		90,000	Balance c/d	3,00,000
Share Allotment A/c		1,20,000
Share First and Final Call A/c		90,000
		3,00,000		3,00,000

Page No 8.114:

Question 9:

Modern Marbles Ltd. was registered with an authorised capital of ₹10,00,000 divided into 7,500 Equity Shares of ₹  100 each and, 2,500 Preference Shares of ₹100 each. 1,000 Equity Shares and 500; 9% Preference Shares were offered to public on the following terms – Equity Shares payable ₹10 on application, ₹40 on allotment and the balance in two calls of ₹  25 each. Preference Shares are payable ₹ 25 on application, ₹ 25 on allotment and ₹50 on first and final call. All the shares were applied for and allotted . Amount due was duly received. Prepare Cash Book and pass necessary Journal entries to record the above issue of shares and show how the Share Capital will appear in the Balance Sheet.

ANSWER:

Authorised Capital:

Equity Shares 7,500 of ₹ 100 each.

9% Preference Shares 2,500 of ₹ 100 each.

Issued Capital:

Equity Shares 1,000 of ₹ 100 each.

Payable as

₹ 10 on Application

₹ 40 on Allotment

₹ 25 on First Call

₹ 25 on Final Call

Preference Shares 500 of ₹ 100 each.

Payable as

₹ 25 on application

₹ 25 on allotment

₹ 50 on first and final call

Books of Modern Marbles Limited Cash Book
Dr.							Cr.
Date	Particulars	L.F.	Bank (₹)	Date	Particulars	L.F.	Bank (₹)
	Equity Share Application		10,000
	Preference Share Application		12,500
	Equity Share Allotment		40,000
	Preference Share Allotment		12,500
	Equity Share First Call		25,000
	Preference Share First and Final Call		25,000
	Equity Share Final Call		25,000		Balance c/d		1,50,000
			1,50,000				1,50,000

 

Journal
	Particulars		L.F.	Debit Amount (₹)	Credit Amount  (₹)
	Equity Share Application A/c	Dr.		10,000
	To Equity Share Capital A/c				10,000
	(Equity share application of 1,000 shares of ₹ 10 each transferred to Equity Share Capital Account)
	Preference Share Application A/c	Dr.		12,500
	To 9% Preference Share Capital A/c				12,500
	(Preference share applications of 500 shares ₹ 25 each transferred to 9% Preference Share Capital Account)
	Equity Share Allotment A/c	Dr.		40,000
	To Equity Share Capital A/c				40,000
	(Equity share allotment due on 1,000 shares at ₹ 40 each)
	Preference Share Allotment A/c	Dr.		12,500
	To 9% Preference Share Capital A/c				12,500
	(Preference share allotment due on 500 shares at ₹ 25 each)
	Equity Share First Call A/c	Dr.		25,000
	To Equity Share Capital A/c				25,000
	(Equity share first call due on 1,000 shares at ₹ 25 each)
	Preference Share First and Final Call A/c	Dr.		25,000
	To 9% Preference Share Capital A/c				25,000
	(Preference share first and final call due on 500 shares at ₹ 50 each)
	Equity Share Final Call A/c	Dr.		25,000
	To Equity Share Capital A/c				25,000
	(Equity share final call due on 1,000 shares at ₹ 25 each)

Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	1,50,000
2. Non-Current Liabilities
3. Current Liabilities
Total		1,50,000
II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	2	1,50,000
Total		1,50,000

NOTES TO ACCOUNTS

Note No.	Particulars				Amount (Rs)
1	Share Capital
	Authorised Share Capital
	75,000 Equity Shares of ₹ 100 each	7,50,000
	25,000 9% Preference Shares of ₹ 100 each	2,50,000			10,00,000
	Issued Share Capital
	1,000 Equity Shares of ₹ 100 each		1,00,000
	500 9% Preference Shares of ₹ 100 each		50,000		1,50,000
	Subscribed, Called-up and Paid-up Share Capital
	1,000 Equity Shares of ₹ 100 each		1,00,000
	500 9% Preference Shares of ₹ 100 each			50,000	1,50,000
2	Cash and Cash Equivalents
	Cash at Bank				1,50,000