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Solution - Samachar India Ltd. took over the assets of Rs 14,00,000 and liabilities of Rs 4,00,000 from News Ltd. for a purchase consideration of Rs 9,19,000. Samachar India Ltd. issued a promissory note of Rs 17,000 payable after 60 days in favour of News Ltd. - Issue at Par and Premium and at Discount

ConceptIssue at Par and Premium and at Discount

Question

Samachar India Ltd. took over the assets of Rs 14,00,000 and liabilities of Rs 4,00,000 from News Ltd. for a purchase consideration of Rs 9,19,000. Samachar India Ltd. issued a promissory note of Rs 17,000 payable after 60 days in favour of News Ltd. and the balance amount was paid by issue of equity shares of Rs 100 each at a premium of Rs 25 per share.

Pass necessary Journal entries for the above transactions in the books of Samachar India Ltd.

Solution

                                                                      Samachar Ltd
                                                                          Journal

Date Particulars L.F.

Dr.

Rs

Cr.

Rs

(i)

 

 

 

 

 

(ii)

 

 

 

 

Sundry Assets A/c                                             Dr

               To Sundry Liabilities A/c

               To News Ltd

               To Capital Reserve A/c

(Being purchase of assets and liabilities of News Ltd)

 

News Ltd                                                           Dr

             To Equity Share Capital A/c

            To Securities Premium A/c

            To Bills Payable A/c

(Being 7,216 Equity Shares issued of Rs 100 each at a premium of Rs 25 per share and a promissory note of Rs 17,000)

 

14,00,000

 

 

 

 

 

9,19,000

 

 

 

 

 

 

4,00,000

9,19,000

81,000

 

 

 

7,21,600

1,80,400

17,000

 

 

Working Notes :

WN 1: Calculation of Number of Equity Shares

`"Number of Shares Issued"="Purchase Consideration"/"Issue Price"`

`=(9,02,000)/125=7,216" equity shares"`

Is there an error in this question or solution?

APPEARS IN

2015-2016 (March) Delhi Set 2
Question 9 | 3 marks

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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 _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _

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

     

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 for question: Samachar India Ltd. took over the assets of Rs 14,00,000 and liabilities of Rs 4,00,000 from News Ltd. for a purchase consideration of Rs 9,19,000. Samachar India Ltd. issued a promissory note of Rs 17,000 payable after 60 days in favour of News Ltd. concept: Issue at Par and Premium and at Discount. For the courses CBSE (Arts), CBSE (Commerce), CBSE (Science)
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