BBG Ltd. had issued 1,00,000 equity shares of Rs.10 each at a premium of Rs.3 per share payable with application money. While passing the journal entries related to the issue, some blanks are left. You are required to complete these blanks.
Books of BBG Ltd
Journal
| Date | Particulars | L.F. | Dr.(Rs.) | Cr.(Rs.) |
|
2015 Jan 05
|
_ _ _ _ _ _ _ _ _ _ _ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (Amount received on application for 1,40,000) shares @ Rs.6 per share including premium) |
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Jan 17
|
Equity Share Application A/c Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ To _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ To _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ To _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ (Transfer of application money to share capital securities premium, money refunded for 20,000 shares for rejected application and balance adjusted towards amount due on allotment as shares were allotted on Pro-rata basis) |
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Jan 17
|
_ _ _ _ _ _ _ _ _ _ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ (Amount due on allotment @ Rs.4 per share) |
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Feb 20
|
_ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ (Balance amount received on allotment) |
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April 01
|
_ _ _ _ _ _ _ _ _ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (First and Final Call money due) |
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April 20
|
_ _ _ _ _ _ _ _ _ _ Dr Calls – in – arrears A/c Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ (Money received on First and Final Call) |
3,000
|
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May 20
|
_ _ _ _ _ _ _ _ _ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ (Forfeited the shares on which call money was not received) |
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June 15
|
_ _ _ _ _ _ _ _ _ _ Dr _ _ _ _ _ _ _ _ _ _ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ (Re-issued the forfeited shares) |
3,000
|
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| _ _ _ _ _ |
_ _ _ _ _ _ _ _ __ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ (_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ __ ) |
Solution
Books of BBG Ltd
Journal
| Date | Particulars | L.F. | Dr.(Rs.) | Cr.(Rs.) |
|
2015 Jan 05
|
Bank A/c (1,40,000 x 6) Dr To To Equity Share Application A/c (Being amount received on application for 1,40,000 shares @ Rs.6 per share including premium) |
8,40,000
|
8,40,000
|
|
|
Jan 17
|
Equity Share Application A/c Dr To Equity Share Capital A/c (1,00,000 x Rs.3) To Securities Premium A/c (1,00,000 x Rs.3) To Equity Share Allotment A/c (20,000 x Rs.6) To Bank a/c (20,000 x Rs.6) (Being transfer of application money to share capital securities premium, money refunded for 20,000 shares for rejected application and balance adjusted towards amount due on allotment as shares were allotted on Pro-rata basis) |
8,40,000
|
3,00,000 3,00,000 1,20,000 1,20,000
|
|
|
Jan 17
|
Equity Share Allotment A/c (1,00,000 x Rs.4) Dr To Equity Share Capital A/c (Being amount due on allotment @ Rs.4 per share) |
4,00,000
|
4,00,000
|
|
|
Feb 20
|
Bank A/c (Rs.4,00,000 - Rs.1,20,000) Dr To Equity Share Allotment A/c (Being balance amount received on allotment) |
2,80,000
|
2,80,000
|
|
|
April 01
|
Equity Share First & Final Call (1,00,000 x Rs.3) Dr To Equity Share Capital A/c (Being First and Final Call money due) |
3,00,000
|
3,00,000
|
|
|
April 20
|
Bank A/c Dr Calls – in – arrears A/c Dr To Equity Share First and Final Call A/c (Being money received on First and Final Call) |
2,97,000 3,000
|
3,00,000
|
|
|
May 20
|
Equity Share Capital A/c Dr To Equity Share Forfeiture A/c (1,000 x Rs.7) To Equity Share First & Final Call A/c (1,000 x Rs.3) (Being shares forfeited on which call money was not received) |
10,000
|
7,000 3,000
|
|
|
June 15
|
Bank A/c (1,000 x Rs.7) Dr Equity Share Forfeiture A/c Dr To Equity Share Capital A/c (Being share forfeited reissued) |
7,000 3,000
|
10,000
|
|
| June 15 |
Equity Share Forfeiture A/c Dr To Capital Reserve A/c (Being amount transferred to Capital Reserve) |
4,000
|
4,000
|
