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Gg Ltd Has Issued 50,000 Equity Shares of 10 Each at a Premium of 2 per Share Payable with Application Money. the Incomplete Journal Entries Related to the Issue Are Given Below. You Are Required to Complete These Blanks. - CBSE (Arts) Class 12 - Accountancy

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GG Ltd has issued 50,000 equity shares of 10 each at a premium of 2 per share payable with application money. The incomplete journal entries related to the issue are given below. You are required to complete these blanks.

                                                                                 Books of GG Ltd

                                                                                          Journal 

Date Particulars L.F. Dr.(Rs.) Cr.(Rs.)

2015

Jan 10

 

 

 

_ _ _ _ _ _ _ _ _ _ _                                                                                                                 Dr

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

(Amount received on application for 70,000 shares @ 5 per share including premium)

     

Jan 16

 

 

 

 

 

 

Equity Share Application A/c                                                                                                     Dr

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

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

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

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

(Transfer of application money to share capital securities premium, money refunded for 8,000) shares for rejected application and balance adjusted towards amount due on allotment as shares were allotted on Pro-rata basis)

     

Jan 31

 

 

_ _ _ _ _ _ _ _ _ _                                                                                                                     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)

 

 

1,500

 

 

 

Aug 27

 

 

 

_ _ _ _ _ _ _ _ _                                                                                                                        Dr

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

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

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

     

Oct 3

 

 

 

_ _ _ _ _ _ _ _ _ _                                                                                                                     Dr

_ _ _ _ _ _ _ _ _ _                                                                                                                     Dr

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

(Re-issued the forfeited shares @ 8 per share fully paid - up)

     
_ _ _ _ _

_ _ _ _ _ _ _ _ __                                                                                                                      Dr

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

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

     

Solution

                                                                                 Books of GG Ltd

                                                                                          Journal 

Date Particulars L.F. Dr.(Rs.) Cr.(Rs.)

2015

Jan 10

 

 

 

Bank A/c                                                                                                                                 Dr

            To Equity Share Application A/c

(Being amount received on application for 70,000 shares @ Rs.5 per share including premium)

 

3,50,000

 

 

 

3,50,000

 

Jan 16

 

 

 

 

 

 

Equity Share Application A/c                                                                                                     Dr

                  To Equity Share Capital A/c

                  To Securities Premium A/c

                  To Equity Share Allotment A/c

                  To Bank A/c (8,000 x Rs.5)

(Being transfer of application money to share capital securities premium, money refunded for 8,000 shares for rejected application and balance adjusted towards amount due on allotment on Pro-rata basis)

 

3,50,000

 

 

 

 

 

 

 

1,50,000

1,00,000

60,000

40,000

 

 

Jan 31

 

 

Equity Share Allotment A/c                                                                                                         Dr

                 To Equity Share Capital A/c

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

 

2,00,000

 

 

 

2,00,000

 

Feb 20

 

 

Bank A/c                                                                                                                                  Dr

                   To Equity Share Allotment A/c

(Being Balance amount received on allotment)

 

1,40,000

 

 

 

1,40,000

 

April 01

 

 

Equity Share First & Final Call (50,000 x Rs.3)                                                                              Dr

                 To Equity Share Capital A/c

(Being First and Final Call money due)

 

1,50,000

 

 

 

1,50,000

 

April 20

 

 

 

Bank A/c                                                                                                                                  Dr

Calls – in – arrears A/c(500 x Rs.3)                                                                                            Dr

              To Equity Share First and Final Call A/c

(Being Money received on First and Final Call)

 

1,48,500 

1,500

 

 

 

 

1,50,000

 

Aug 27

 

 

 

Equity Share Capital A/c (500 x Rs.10)                                                                                       Dr

               To Equity Share Forfeiture A/c (500 x Rs.7)

               To Equity Share First & Final Call A/c

(Being shares forfeited on which call money was not received)

 

5,000

 

 

 

 

3,500

1,500

 

Oct 3

 

 

 

Bank A/c (500 x Rs.8)                                                                                                               Dr

Equity Share Forfeiture A/c (500 x Rs.2)                                                                                     Dr

               To Equity Share Capital A/c

(Being Re-issued of the forfeited shares @ 8 per share fully paid - up)

 

4,000

1,000

 

 

 

 

5,000

 

Oct.3

Equity Share Forfeiture A/c                                                                                                        Dr

              To Capital Reserve A/c

(Being amount transferred to capital reserve)

 

2,500 

 

 

 

2,500

 

  Is there an error in this question or solution?
Solution Gg Ltd Has Issued 50,000 Equity Shares of 10 Each at a Premium of 2 per Share Payable with Application Money. the Incomplete Journal Entries Related to the Issue Are Given Below. You Are Required to Complete These Blanks. Concept: Issue at Par and Premium and at Discount.
S
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