INDIAN SCHOOL DARSAIT

DEPARTMENT OF COMMERCE
Subject : Accountancy Topic : Company Accounts Date of Issue:__/__/ 2019
Issue and forfeiture of Worksheet No.18
shares
Resource Person: Alexander Gee Varghese Date of Submission:__/__/ 2019

Name of the Student :________________ Class & Division : XII___ Roll Number : __

Date Particulars LF Debit (Rs) Credit (Rs)

When Application money is received
Bank a/c Dr xxx
To Share Application a/c xxx
(Being application money received on
____shares @ Rs. ___
When application money is transferred to Share Capital a/c
Share Application a/c Dr xxx
To Share Capital a/c xxx
(Being application money transferred
to Share Capital a/c.)
When Allotment money is due.
Issued at Par xxx
Share Allotment a/c Dr xxx
To Share Capital
(Being share allotment money due
on_____shares @ Rs.____)
Issued at Premium
Share Allotment a/c Dr xxx
To Share Capital xxx
To Securities Premium Reserve a/c xxx
(Being share allotment money due
on___shares @ Rs. ___including premium)
4. When Allotment money is received
Bank a/c Dr xxx
To Share Allotment a/c xxx
(Being allotment money received)
5. When First Call money is due.
Share First Call a/c Dr xxx
To Share Capital xxx
(Being share First call money due
on_____shares @ Rs.____)
6. When First call money is received
Bank a/c Dr xxx
To Share First Call a/c xxx
(Being First call money received)
Note: 1. For Second call also, journal entry is same as the First call journal entry.
2. Use Final Call along with the last call.

JOURNAL ENTRIES

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 INDIAN SCHOOL DARSAIT
DEPARTMENT OF COMMERCE

WHEN SHARE CAPITAL MONEY RECEIVED IN ONE LUMPSUM

Q, 1. Rahul limited issued 10,000 Equity shares @ Rs.10 at Par payable full amount on application.
Company received 12,000 shares applications. Directors allotted shares on Pro-rata basis. Pass Journal entries.

Q, 2. Nived limited issued 20,000 Equity shares @ Rs.10 at a Premium of Rs.2 payable full amount on
application. Company received 30,000 shares applications. Directors allotted shares on Pro-rata basis. Pass
Journal entries.

Q.3. Joel limited issued 1,00,000 Equity shares @ Rs.10 at a Premium of Rs.5 payable full amount on
application. Company received 4,00,000 shares applications. Directors allotted shares on Pro-rata basis. Pass
Journal entries.

Q.4. Jasmin limited issued 50,000 Equity shares @ Rs.10 at a Premium of 20% payable full amount on
application. Company received 60,000 shares applications. Directors allotted shares on Pro-rata basis. Pass
Journal entries.

WHEN SHARE CAPITAL MONEY RECEIVED IN INSTALMENTS

Q1 Melvin Ltd invited application for 10,000 shares @ Rs.10 at par payable as follows:-
On Application Rs.2 per share
On Allotment Rs.3 per share
On First Call Rs.3 Per share
On Second &Final Call Rs.2 Per share.
Company Received sufficient applications and all shares are allotted and money received. Pass Journal entries.

Q.2 Sujith Ltd invited application for 50,000 shares @ Rs.10 at a premium of 10% payable as :-
On Application Rs.3 per share
On Allotment Rs.6 per share
On First & Final Call Rs.2 Per share
Company Received application for 45,000 shares. Directors allotted shares to all the applicants. All money
received except the final call on 800 shares. Pass journal entries.

Q3. Anjitha Ltd invited application for 20,000 shares @ Rs.10 at a premium of Rs.2 payable as follows:-
On Application Rs.3 per share
On Allotment Rs.5 per share (including premium)
On First & Final Call Rs.4 Per share
Company Received application for 30,000 shares. Directors rejected all excess applications and money
refunded. Mr X, holder of 300 shares failed to pay first and final call money. Pass journal entries.

Q.4. Rose Ltd invited application for 20,000 shares @ Rs.10 at Par payable as follows:-
On Application Rs.2 per share
On Allotment Rs.5 per share
On First & Final Call Rs.3 Per share
Company Received application for 30000 shares. Directors allotted shares on pro rata basis to all the
applicants. All money received except the final call on 900 shares. Pass journal entries.

Q.5. Jomsey Ltd invited application for 40000 shares @ Rs.10 at a premium of 10% payable as follows:-
On Application Rs.2 per share
On Allotment Rs.5 per share (including premium)
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DEPARTMENT OF COMMERCE
On First & Final Call Rs.4 Per share
Company Received application for 60000 shares. Directors rejected 12000 shares application and remaining
accepted on pro rata basis. All money received except the final call on 300 shares. Pass journal entries.

.Q.6. Anagha Ltd invited application for 20000 shares @ Rs.10 at a premium of 20% payable as follows:-
On Application Rs.2 per share
On Allotment Rs.5 per share (including premium)
On First Call Rs.3 Per share
On Second and Final Call Rs.2 per share
Company Received application for 30000 shares. Directors allotted shares on pro rata basis to the applicants
of 24000 shares and remaining applications were rejected. Mr. A, holder of 200 shares failed to pay the first
call and final call money and Mr.B failed to pay final call money on 300 shares. Pass Journal entries.

Q7. Aditi Ltd invited application for 4000 shares @ Rs.10 at a premium of 10% payable as follows:-
On Application Rs.2 per share
On Allotment Rs.5 per share (including premium)
On First & Final Call Rs.4 Per share
Company Received application for 8,000 shares. Directors rejected 3200 shares application and remaining
accepted on pro rata basis. All money received except the final call on 400 shares .Pass journal entries.

. Q.8. Haritha Ltd invited application for 12,000 shares @ Rs.10 at a premium of 20% payable as follows:-
On Application Rs.3 per share
On Allotment Rs.5 per share (including premium)
On First and Final Call Rs.4 Per share
Company Received application for 20,000 shares. Directors allotted shares on pro rata basis to the applicants
of 15000 shares and remaining applications were rejected. Mr. X, holder of 800 shares failed to pay the final
call. Pass Journal entries.

Q.9. Anushri Ltd invited application for 10,000 shares @ Rs.100 at a Premium of Rs.5 payable as follows:-
On Application Rs.20 per share
On Allotment Rs.55 per share
On First & Final Call Rs.30 Per share (Including Premium)
Company Received application for 18,000 shares. Directors rejected 3,000shares application and remaining
accepted on pro rata basis. Mr. X, holder of 120 shares failed to pay the first call money. Pass Journal entries

Q.10 Bushra Ltd invited application for 1,00,000 shares @ Rs.100 at a Premium of Rs.10 payable as follows:-
On Application Rs.40 per share (Including Premium)
On Allotment Rs.30 per share
On First & Final Call Rs.40 Per share
Company Received application for 1,50,000 shares. Directors allotted shares on pro-rata basis to all applicants.
Miss. Komal, holder 3,000 shares failed to pay the first call money. Pass Journal entries.

Q.11. Subosh Ltd invited application for 4000 shares @ Rs.10 at a premium of 20% payable as follows:-
On Application Rs.5 per share (including premium)
On Allotment Rs.4 per share
On First & Final call Rs.3 per share
Company Received application for 6000 shares. Directors rejected 1200 shares application and remaining
accepted on pro rata basis. Mr. Lal, holder of 200 shares failed to pay the first and final call money. Pass
Journal entries.

Q.12 Syeda Ltd invited application for 10,000 shares @ Rs.10 at a premium of Rs.5 payable as follows:-
On Application Rs.4 per share (including premium Re.1)
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DEPARTMENT OF COMMERCE
On Allotment Rs.6 per share (including Premium Rs.2)
On First & Final call Rs.5 per share (including Premium Rs.2)
Company Received application for 15,000 shares. Directors rejected 3,000 shares application and remaining
accepted on pro rata basis. Mr. Jai, holder of 700 shares failed to pay the first and final call money. Pass
Journal entries.

CALCULATION OF CALLS IN ARREAR

Q1. Mohisin Ltd invited application for 40000 shares @ Rs.10 at a premium of 10% payable as follows:-
On Application Rs.2 per share
On Allotment Rs.5 per share (including premium)
On First & Final Call Rs.4 Per share
Company Received application for 60,000 shares. Directors rejected 12,000 shares application and remaining
accepted on pro rata basis. All money received except the allotment money and final call on 400 shares .Pass
journal entries.

. Q.2. Arvind Ltd invited application for 20,000 shares @ Rs.10 at a premium of 20% payable as follows:-
On Application Rs.3 per share
On Allotment Rs.5 per share (including premium)
On First and Final Call Rs.4 Per share
Company Received application for 30,000 shares. Directors allotted shares on pro rata basis to the applicants
of 24000 shares and remaining applications were rejected. Mr. Basu, holder of 300 shares failed to pay the
allotment money and the final call. Pass Journal entries.

Q.3. Gladwin Ltd invited application for 10,000 shares @ Rs.100 at a premium of Rs.5 payable as follows:-
On Application Rs.20 per share
On Allotment Rs.55 per share
On First & Final Call Rs.30 Per share
Company Received application for 15,000 shares. Directors rejected 3,000shares application and remaining
accepted on pro rata basis. Mr. X, who applied for 120 shares failed to pay the allotment money and first call
money. Pass Journal entries.

Q.4 Mohit Ltd invited application for 1,00,000 shares @ Rs.100 at a premium of Rs.10 payable as follows:-
On Application Rs.20 per share
On Allotment Rs.30 per share
On First & Final Call Rs.60 Per share
Company Received application for 1,50,000 shares. Directors allotted shares on pro-rata basis to all applicants.
Miss. Rupali, who applied for 3,000 shares failed to pay the allotment money and first call money. Pass Journal
entries.

Q.5. Saneyar Ltd invited application for 50,000 shares @ Rs.10 at a premium of 30% Payable as follows:-
On Application Rs.3 per share
On Allotment Rs.6 per share (including premium)
On First & Final Call Rs.4 Per share
Company Received application for 60,000 shares. Directors allotted shares on the following basis:-
(i) To applicants for 10,000 shares --------in full.
To applicants for 20,000 shares ---------15,000 shares
To applicants for 30,000 shares ---------25,000 shares. All excess application money is to be adjusted against
amount due on allotment Mr. K, who applied for 100 shares out of the group applied for 20,000 shares failed
to pay allotment money and call money. Mr.Y, applicant of 600 shares out of the group applied for 30,000
shares failed to pay the first and final call money. Pass Journal entries.

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 INDIAN SCHOOL DARSAIT
DEPARTMENT OF COMMERCE
Q6 Devika Ltd invited application for 1,00,000 shares @ Rs.10 at a premium of Rs. 2/- payable as
follows:-
On Application Rs.3 per share
On Allotment Rs.5 per share (including premium)
On First & Final Call Rs.4 Per share
Company Received application for 1,40,000 shares. Directors allotted shares on the following basis:-
(i) To applicants for 10,000 shares -------- Nil
(ii) To applicants for 20,000 shares -------- Full
To applicants for 40,000 shares --------- 30,000 shares
To applicants for 70,000 shares ---------50,000 shares.
All excess application money is to be adjusted against amount due on allotment Mr. X, holder of 600 shares
out of the group applied for 40,000 shares failed to pay allotment money and call money. Mr.Y, applicant of
1,400 shares, out of the group applied for 70,000 shares failed to pay the allotment money and call money.
Pass Journal entries.

WHEN SHARES ARE ISSUED FOR CONSIDERATION OTHER THAN CASH

Q1. Mattoo Enterprises purchased Machinery worth Rs.99,000 from Kunal Ltd. The amount was paid by
issue of Equity Shares of Rs.100 each. Pass Journal entries in the following cases:
If Shares are issued at Par.
If Shares are issued at a Premium of 10%

Q2. Laksha Ltd purchased Land and Building worth Rs.2,97,000 from Mark &Co. The amount was paid by
issue of 12% Preference Shares of Rs.100 each. Pass Journal entries in the following cases:
If Shares are issued at Par.
If Shares are issued at a Premium of 10%

Q.3. Aradhya Ltd purchased Furniture for Rs.9,00,000 payable as to Rs.1,30,000 in cash and balance by an
issue of Equity Shares of Rs.100 each at a premium of 10%.

Q.4. Ritik Ltd took over assets of Rs.10,00,000 and liabilities of Rs.2,40,000 of Sagar Ltd for the purchase
consideration of Rs.8.80,000. Ritik Ltd paid the purchase consideration by issuing Shares of Rs.100 each at 10%
premium. Give Journal entries.

Q.5. Rohit Ltd took over assets of Rs.3,00,000 and liabilities of Rs.65,000 of Akash Ltd for the purchase
consideration of Rs.1,90,000. Rohit Ltd paid the purchase consideration by issuing Equity Shares of Rs.100
each at 25% premium. Give Journal entries.

Q.6. Christopher Ltd acquired the running business of Rahim Ltd taking over the following assets and
liabilities for a purchase consideration of Rs.10,50,000.
Land and Building Rs,7,00,000
Plant & Machinery Rs.5,00,000
Stock in trade Rs.2,00,000
Debtors Rs.1,00,000
Current liabilities Rs.3,00,000
The amount of purchase consideration was payable as to Rs.2,80,000 in cash and the balance by issue of 12%
Preference Shares of Rs.100 each at a premium of 10%.

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