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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. - Accountancy

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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)

     

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)

     

Jan 17

 

 

_ _ _ _ _ _ _ _ _ _                                                                                                                     Dr

                 To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _

(Amount due on allotment @ Rs.4 per share)

     

Feb 20

 

 

_ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _                                                                                              Dr

                   To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _

(Balance amount received on allotment)

     

April 01

 

 

_ _ _ _ _ _ _ _ _                                                                                                                        Dr

                 To _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

(First and Final Call money due)

     

April 20

 

 

 

_ _ _ _ _ _ _ _ _ _                                                                                                                     Dr

Calls – in – arrears A/c                                                                                                               Dr

              To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _

(Money received on First and Final Call)

 

 

3,000

 

 

 

May 20

 

 

 

_ _ _ _ _ _ _ _ _                                                                                                                        Dr

               To _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

               To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _

(Forfeited the shares on which call money was not received)

     

June 15

 

 

 

_ _ _ _ _ _ _ _ _ _                                                                                                                     Dr

_ _ _ _ _ _ _ _ _ _                                                                                                                     Dr

               To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _

(Re-issued the forfeited shares)

 

 

3,000

 

 

 
_ _ _ _ _

_ _ _ _ _ _ _ _ __                                                                                                                      Dr

              To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _

(_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ __ )

     
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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

 

Concept: Issue at Par and Premium and at Discount
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