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Ashok company limited , Dhanbad was registered with an authorised capital of ₹500000 divided into 50000 eyuity shares of ₹10 each . The company issued 40000 shares of which 30000 shares was subscribed by the public payable ₹2 on application,₹3on allotment ,₹3 on first call and the balance ₹2 on second and final call. All the amounts were duly received. Pass the necessary journal entries in the books of Ashok company limited and prepare opening balance sheet.
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Ashok company limited , Dhanbad was registered with an authorised capi...
Journal Entries and Opening Balance Sheet for Ashok Company Limited
Journal Entries:
1. To record the issue of shares:
Bank A/c Dr. - ₹80000
Share Capital A/c Cr. - ₹80000
2. To record the allotment of shares:
Share Application A/c Dr. - ₹60000
Share Capital A/c Cr. - ₹60000
(₹2 per share on 30000 shares)
3. To record the receipt of allotment money:
Bank A/c Dr. - ₹90000
Share Allotment A/c Cr. - ₹90000
(₹3 per share on 30000 shares)
4. To record the first call:
Share First Call A/c Dr. - ₹90000
Share Capital A/c Cr. - ₹90000
(₹3 per share on 30000 shares)
5. To record the receipt of first call money:
Bank A/c Dr. - ₹90000
Share First Call A/c Cr. - ₹90000
6. To record the second call:
Share Second Call A/c Dr. - ₹60000
Share Capital A/c Cr. - ₹60000
(₹2 per share on 30000 shares)
7. To record the receipt of second call money:
Bank A/c Dr. - ₹60000
Share Second Call A/c Cr. - ₹60000
Opening Balance Sheet:
Liabilities | Amount (₹) | Assets | Amount (₹)
---|---|---|---
Share Capital | 400000 | Fixed Assets |
Share First Call | 90000 | Current Assets |
Share Second Call | 60000 | Bank | 270000
Total | 550000 | Total | 270000
Explanation:
The given question is related to the issuance of shares by Ashok Company Limited. The company had an authorized capital of ₹500000 divided into 50000 equity shares of ₹10 each. Out of this, the company issued 40000 shares, of which 30000 shares were subscribed by the public.
The shares were issued at par, i.e., at their face value of ₹10 per share. The public was required to pay ₹2 per share on application, ₹3 per share on allotment, ₹3 per share on the first call, and the balance ₹2 per share on the second and final call. The company received all the amounts duly.
The journal entries have been given above to record the various transactions related to the issuance and payment of shares. The opening balance sheet has also been prepared based on the given information.
The liabilities side of the balance sheet shows the share capital of the company, which is ₹400000. The first and second calls have also been shown separately. On the assets side, the fixed assets have not been provided in the question. The current assets include the amount received from the public on the issuance of shares, which is ₹270000 in this case.
Thus, the above journal entries and opening balance sheet show the accounting treatment of the issuance of shares by Ashok Company Limited.
Journal Entries:
1. To record the issue of shares:
Bank A/c Dr. - ₹80000
Share Capital A/c Cr. - ₹80000
2. To record the allotment of shares:
Share Application A/c Dr. - ₹60000
Share Capital A/c Cr. - ₹60000
(₹2 per share on 30000 shares)
3. To record the receipt of allotment money:
Bank A/c Dr. - ₹90000
Share Allotment A/c Cr. - ₹90000
(₹3 per share on 30000 shares)
4. To record the first call:
Share First Call A/c Dr. - ₹90000
Share Capital A/c Cr. - ₹90000
(₹3 per share on 30000 shares)
5. To record the receipt of first call money:
Bank A/c Dr. - ₹90000
Share First Call A/c Cr. - ₹90000
6. To record the second call:
Share Second Call A/c Dr. - ₹60000
Share Capital A/c Cr. - ₹60000
(₹2 per share on 30000 shares)
7. To record the receipt of second call money:
Bank A/c Dr. - ₹60000
Share Second Call A/c Cr. - ₹60000
Opening Balance Sheet:
Liabilities | Amount (₹) | Assets | Amount (₹)
---|---|---|---
Share Capital | 400000 | Fixed Assets |
Share First Call | 90000 | Current Assets |
Share Second Call | 60000 | Bank | 270000
Total | 550000 | Total | 270000
Explanation:
The given question is related to the issuance of shares by Ashok Company Limited. The company had an authorized capital of ₹500000 divided into 50000 equity shares of ₹10 each. Out of this, the company issued 40000 shares, of which 30000 shares were subscribed by the public.
The shares were issued at par, i.e., at their face value of ₹10 per share. The public was required to pay ₹2 per share on application, ₹3 per share on allotment, ₹3 per share on the first call, and the balance ₹2 per share on the second and final call. The company received all the amounts duly.
The journal entries have been given above to record the various transactions related to the issuance and payment of shares. The opening balance sheet has also been prepared based on the given information.
The liabilities side of the balance sheet shows the share capital of the company, which is ₹400000. The first and second calls have also been shown separately. On the assets side, the fixed assets have not been provided in the question. The current assets include the amount received from the public on the issuance of shares, which is ₹270000 in this case.
Thus, the above journal entries and opening balance sheet show the accounting treatment of the issuance of shares by Ashok Company Limited.
Community Answer
Ashok company limited , Dhanbad was registered with an authorised capi...
अशोक कम्पनी लिमिटेड, धनबाद 500000 रू की अधिकृत पूंजी से स्थापित हुई जो 10 रू. के 50000 समता अंशों में विभाजित थी। कम्पनी ने 40000 अंशों को निर्गमित किया जिनमें से 30000 अंशों को जनता ने खरीदा जिन पर 2 रु आवेदन पर 3 रु आबंटन पर 3 रु प्रथम याचना पर और शेष 2 रू द्वितीय एवं अंतिम याचना पर देय थे। सभी राशियां यथा समय प्राप्त हो गई अशोक कम्पनी लिमिटेड, धनबाद की पुस्तकों में आवश्यक रोजनामचा प्रविष्टियां कीजिये ।
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Ashok company limited , Dhanbad was registered with an authorised capital of ₹500000 divided into 50000 eyuity shares of ₹10 each . The company issued 40000 shares of which 30000 shares was subscribed by the public payable ₹2 on application,₹3on allotment ,₹3 on first call and the balance ₹2 on second and final call. All the amounts were duly received. Pass the necessary journal entries in the books of Ashok company limited and prepare opening balance sheet. Related: Issue of Shares at Par, Premium and Discount, Advanced Corporate Accounting?
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Ashok company limited , Dhanbad was registered with an authorised capital of ₹500000 divided into 50000 eyuity shares of ₹10 each . The company issued 40000 shares of which 30000 shares was subscribed by the public payable ₹2 on application,₹3on allotment ,₹3 on first call and the balance ₹2 on second and final call. All the amounts were duly received. Pass the necessary journal entries in the books of Ashok company limited and prepare opening balance sheet. Related: Issue of Shares at Par, Premium and Discount, Advanced Corporate Accounting? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Ashok company limited , Dhanbad was registered with an authorised capital of ₹500000 divided into 50000 eyuity shares of ₹10 each . The company issued 40000 shares of which 30000 shares was subscribed by the public payable ₹2 on application,₹3on allotment ,₹3 on first call and the balance ₹2 on second and final call. All the amounts were duly received. Pass the necessary journal entries in the books of Ashok company limited and prepare opening balance sheet. Related: Issue of Shares at Par, Premium and Discount, Advanced Corporate Accounting? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ashok company limited , Dhanbad was registered with an authorised capital of ₹500000 divided into 50000 eyuity shares of ₹10 each . The company issued 40000 shares of which 30000 shares was subscribed by the public payable ₹2 on application,₹3on allotment ,₹3 on first call and the balance ₹2 on second and final call. All the amounts were duly received. Pass the necessary journal entries in the books of Ashok company limited and prepare opening balance sheet. Related: Issue of Shares at Par, Premium and Discount, Advanced Corporate Accounting?.
Ashok company limited , Dhanbad was registered with an authorised capital of ₹500000 divided into 50000 eyuity shares of ₹10 each . The company issued 40000 shares of which 30000 shares was subscribed by the public payable ₹2 on application,₹3on allotment ,₹3 on first call and the balance ₹2 on second and final call. All the amounts were duly received. Pass the necessary journal entries in the books of Ashok company limited and prepare opening balance sheet. Related: Issue of Shares at Par, Premium and Discount, Advanced Corporate Accounting? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Ashok company limited , Dhanbad was registered with an authorised capital of ₹500000 divided into 50000 eyuity shares of ₹10 each . The company issued 40000 shares of which 30000 shares was subscribed by the public payable ₹2 on application,₹3on allotment ,₹3 on first call and the balance ₹2 on second and final call. All the amounts were duly received. Pass the necessary journal entries in the books of Ashok company limited and prepare opening balance sheet. Related: Issue of Shares at Par, Premium and Discount, Advanced Corporate Accounting? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ashok company limited , Dhanbad was registered with an authorised capital of ₹500000 divided into 50000 eyuity shares of ₹10 each . The company issued 40000 shares of which 30000 shares was subscribed by the public payable ₹2 on application,₹3on allotment ,₹3 on first call and the balance ₹2 on second and final call. All the amounts were duly received. Pass the necessary journal entries in the books of Ashok company limited and prepare opening balance sheet. Related: Issue of Shares at Par, Premium and Discount, Advanced Corporate Accounting?.
Solutions for Ashok company limited , Dhanbad was registered with an authorised capital of ₹500000 divided into 50000 eyuity shares of ₹10 each . The company issued 40000 shares of which 30000 shares was subscribed by the public payable ₹2 on application,₹3on allotment ,₹3 on first call and the balance ₹2 on second and final call. All the amounts were duly received. Pass the necessary journal entries in the books of Ashok company limited and prepare opening balance sheet. Related: Issue of Shares at Par, Premium and Discount, Advanced Corporate Accounting? in English & in Hindi are available as part of our courses for B Com.
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Ashok company limited , Dhanbad was registered with an authorised capital of ₹500000 divided into 50000 eyuity shares of ₹10 each . The company issued 40000 shares of which 30000 shares was subscribed by the public payable ₹2 on application,₹3on allotment ,₹3 on first call and the balance ₹2 on second and final call. All the amounts were duly received. Pass the necessary journal entries in the books of Ashok company limited and prepare opening balance sheet. Related: Issue of Shares at Par, Premium and Discount, Advanced Corporate Accounting?, a detailed solution for Ashok company limited , Dhanbad was registered with an authorised capital of ₹500000 divided into 50000 eyuity shares of ₹10 each . The company issued 40000 shares of which 30000 shares was subscribed by the public payable ₹2 on application,₹3on allotment ,₹3 on first call and the balance ₹2 on second and final call. All the amounts were duly received. Pass the necessary journal entries in the books of Ashok company limited and prepare opening balance sheet. Related: Issue of Shares at Par, Premium and Discount, Advanced Corporate Accounting? has been provided alongside types of Ashok company limited , Dhanbad was registered with an authorised capital of ₹500000 divided into 50000 eyuity shares of ₹10 each . The company issued 40000 shares of which 30000 shares was subscribed by the public payable ₹2 on application,₹3on allotment ,₹3 on first call and the balance ₹2 on second and final call. All the amounts were duly received. Pass the necessary journal entries in the books of Ashok company limited and prepare opening balance sheet. Related: Issue of Shares at Par, Premium and Discount, Advanced Corporate Accounting? theory, EduRev gives you an
ample number of questions to practice Ashok company limited , Dhanbad was registered with an authorised capital of ₹500000 divided into 50000 eyuity shares of ₹10 each . The company issued 40000 shares of which 30000 shares was subscribed by the public payable ₹2 on application,₹3on allotment ,₹3 on first call and the balance ₹2 on second and final call. All the amounts were duly received. Pass the necessary journal entries in the books of Ashok company limited and prepare opening balance sheet. Related: Issue of Shares at Par, Premium and Discount, Advanced Corporate Accounting? tests, examples and also practice B Com tests.
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