Question

National Textiles Ltd. was registered with the authorised 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 duly received.

Prepare Cash Book, Journal and Balance Sheet showing Share Capital.

Answer 1

Cash Book
Dr. Particulars	₹	Cr. Particulars	₹
To Shares Application A/c	90,000	By Balance c/d	3,00,000
To Shares Allotment A/c	1,20,000
To Shares First and Final Call A/c	90,000
Total	3,00,000	Total	3,00,000

Working Note:

Number of shares = 3,000

Face value per share = ₹ 100

Application money:

3,000 × ₹ 30 = ₹ 90,000

Allotment money:

3,000 × ₹ 40 = ₹ 1,20,000

First and Final Call:

3,000 × ₹ 30 = ₹ 90,000

Total amount received:

₹ 90,000 + ₹ 1,20,000 + ₹ 90,000 = ₹ 3,00,000

Journal Entries
Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
1.	Shares Application A/c   ...Dr.		90,000
	To Share Capital A/c			90,000
	(Application money transferred to Share Capital)
2.	Shares Allotment A/c   ...Dr.		1,20,000
	To Share Capital A/c			1,20,000
	(Allotment money due on 3,000 shares @ ₹ 40 per share)
3.	Shares First and Final Call A/c   ...Dr.		90,000
	To Share Capital A/c			90,000
	(First and Final Call money due on 3,000 shares @ ₹ 30 per share)

 

Balance Sheet
Particulars	Note No.	₹
EQUITY AND LIABILITIES
Shareholders' Funds
Share Capital	1	3,00,000

 

Notes to Accounts
Particulars	₹
Note 1: Share Capital
Authorised Capital:
3,000 Equity Shares of ₹ 100 each	3,00,000
Issued Capital:
3,000 Equity Shares of ₹ 100 each	3,00,000
Subscribed and Fully Paid-up Capital:
3,000 Equity Shares of ₹ 100 each	3,00,000