MENU
Question -

Sumit Machine Ltd. issued 50,000 shares of Rs. 100 each at premium of 5%. The shares were payable Rs. 25 on application, Rs. 50 on allotment and Rs. 30 on first and final call. The issue was fully subscribed and money was duly received except the final call on 400 shares. The premium was adjusted on allotment.
Give journal entries and prepare balance sheet.



Answer -

Books of Sumit Machine Ltd.

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

 

Bank A/c

Dr.

 

12,50,000

 

 

 

To Share Application A/c

 

 

12,50,000

 

(Share Application money received on application for 50,000 shares @ 25 per share)

 

 

 

 

 

 

 

 

 

Share Application A/c

Dr.

 

12,50,000

 

 

 

To Share Capital A/c

 

 

12,50,000

 

(Share Application money of 50,000 shares transferred to Share Capital Account)

 

 

 

 

 

 

 

 

 

Share Allotment A/c

Dr.

 

25,00,000

 

 

 

To Share Capital A/c

 

 

 

22,50,000

 

 

To Securities Premium A/c

 

 

 

2,50,000

 

(Share Allotment money due on 50,000 shares @ 45 each at a premium of 5)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

25,00,000

 

 

 

To Share Allotment A/c

 

 

 

25,00,000

 

(Allotment money received for 50,000 shares @ 50 per share)

 

 

 

 

 

 

 

 

 

Share First and Final Call A/c

Dr.

 

15,00,000

 

 

 

To Share Capital A/c

 

 

15,00,000

 

(Share First and Final call due on 50,000 shares @ 30 per share)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

14,88,000

 

 

Calls in Arrears A/c

Dr.

 

12,000

 

 

 

To Share First and Final Call A/c

 

 

15,00,000

 

(Share First and Final Call received except 400 shares)

 

 

 

 

 

 

 

 

Sumit Machine Ltd.

Balance Sheet

Particulars

Note No.

Amount 

(₹)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

 a. Share Capital

1

49,88,000

b. Reserves and Surplus

2

2,50,000

 

 

 

2. Non-Current Liabilities

 

 

3. Current Liabilities

 

 

Total

 

52,38,000

II. Assets

 

 

  1. Non-Current Assets

 

 

  1. Current Assets

 

 

a. Cash and Cash Equivalents

3

52,38,000

Total

 

52,38,000

 

 

 

 

NOTES TO ACCOUNTS

Note
No.

Particulars

Amount  

(₹)

1

Share Capital

 

 

Authorised Share Capital

 

 

…….. shares of ₹ 100 each

-

 

Issued Share Capital

 

 

 50,000 shares of ₹ 100 each

50,00,000

 

Subscribed, Called-up and Paid-up Share Capital

 

 

50,000 shares of ₹ 100 each

50,00,000

 

 

Less: Calls-in-Arrears

  (12,000)

49,88,000

 

 

 

2

Reserves and Surplus

 

 

Securities Premium Reserve

2,50,000

 

 

 

3

Cash and Cash Equivalents

 

 

Cash at Bank

52,38,000

 

Comment(S)

Show all Coment

Leave a Comment

Free - Previous Years Question Papers
Any questions? Ask us!
×