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 1

Date	Particulars	L.F	Debit amount Rs	Credit Amount Rs
	Bank A/c To Share Application A/c (Share Application money received on application for 50,000 shares @ ₹25 per share)		12,50,000	12,50,000
	Share Application A/c To Share Capital A/c (Share Application money of 50,000 shares transferred to Share Capital Account)		12,50,000	12,50,000
	Share Allotment A/c To Share Capital A/c To Securities Premium A/c (Share Allotment money due on 50,000 shares @ ₹45 each at a premium of ₹5)		25,00,000	22,50,000   2,50,000
	Bank A/c To Share Allotment A/c (Allotment money received for 50,000 shares @ ₹50 per share)		25,00,000	25,00,000
	Share First and Final Call A/c To Share Capital A/c (Share First and Final call due on 50,000 shares @ ₹30 per share)		15,00,000	15,00,000
	Bank A/c Calls in Arrears A/c To Share First and Final Call A/c (Share First and Final Call received except 400 shares)		14,88,000 12,000	15,00,000

Sumit Machine Ltd.

Balance Sheet

Particulars	Note No.	Amount (₹)
I. Equity and Liabilities 1. Shareholders’ Funds a. Share Capital b. Reserves and Surplus 2. Non-Current Liabilities 3. Current Liabilities	1 2	49,88,000 2,50,000
Total		52,38,000
II. Assets Non-Current Assets Current Assets a. Cash and Cash Equivalents	3	52,38,000
Total

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  Subscribed, Called-up and Paid-up Share Capital 50,000 shares of ₹ 100 each Less: Calls-in-Arrears	50,00,000 (12,000)	50,00,000     49,88,000
2	Reserves and Surplus Securities Premium Reserve		2,50,000
3	Cash and Cash Equivalents Cash at Bank		52,38,000