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
|
