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Rs Ltd. Has Issued 25000 Equity Shares of Rs. 10 Each at a Premium of Rs. 2 per Hares 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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RS Ltd. has issued 25000 equity shares of Rs. 10 each at a premium of Rs. 2 per hares payable with application money. The incomplete journal entries related to the issue are given below. You are required to complete these blanks.

                                                                                             Books of RS Ltd.

                                                                                                   Journal

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

2015

Jan 10

 

 

 

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

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

(Amount received on application for 35,000 shares @ Rs.5 per share)

     

Jan 16

 

 

 

 

 

 

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

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

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

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

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

(Transfer of application money to share capital securities premium, money refunded for 4,000 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 except on 500 shares)

     

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 RS Ltd

                                                                                                   Journal

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

2015

Jan 10

 

 

 

Bank A/c                                                                                                                                 Dr

             To To Equity Share Application A/c

(Being amount received on application for 35,000 shares @ Rs.5 per share including premium)

 

 1,75,000

 

 

 

1,75,000

 

Jan 16

 

 

 

 

 

 

Equity Share Application A/c                                                                                                      Dr

                  To Equity Share Capital A/c (25,000 x Rs.3)

                  To Securities Premium A/c (25,000 x Rs.2)

                  To Equity Share Allotment A/c (6,000 x Rs.5)

                  To Bank a/c (4,000 x Rs.5)

(Being application money transferred to share capital securities premium and money refunded for 20,000 shares for rejected application; balance adjusted towards amount due on allotment)

 

1,75,000

 

 

 

 

 

 

 

75,000

50,000

30,000

20,000

 

 

Jan 31

 

 

Equity Share Allotment A/c                                                                                                         Dr

                 To Equity Share Capital A/c

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

 

1,00,000

 

 

 

1,00,000

 

Feb 20

 

 

Bank A/c (1,00,000 – 30,000)                                                                                                    Dr

                   To Equity Share Allotment A/c

(Being balance amount received on allotment)

 

70,000

 

 

 

70,000

 

April 01

 

 

Equity Share First & Final Call (25,000 x Rs.3)                                                                             Dr

                 To Equity Share Capital A/c

(Being first and final call money due)

 

75,000

 

 

 

75,000

 

April 20

 

 

 

Bank A/c (75,000 – 1,500)                                                                                                         Dr

Calls – in – arrears A/c                                                                                                              Dr

              To Equity Share First and Final Call A/c

(Being money received on first and final call)

 

 73,500

1,500

 

 

 

 

75,000

 

Aug 27

 

 

 

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

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

               To Equity Share First & Final Call A/c (500 x Rs.3)

(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 2)                                                                                          Dr

               To Equity Share Capital A/c (500 x 10)

(Being forfeited Share reissued @ 8 per share fully paid up)

 

 4,000

1,000

 

 

 

 

5,000

 

Oct 15

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 Rs Ltd. Has Issued 25000 Equity Shares of Rs. 10 Each at a Premium of Rs. 2 per Hares 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.
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