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B Ltd. issued 5,000 Equity shares of Rs. 100 each at a discount of 10%, payable as follows :on Application : Rs. 25; on Allotment : Rs. 40; on Call : the balance. Public subscribed for 4,800 shares and allotment was made in full. One shareholder holding 25 shares failed to pay the allotment and calls. These were forfeited and 20 of those shares were reissued at Rs. 88 each. Pass journal entries and prepare Balance Sheet?
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B Ltd. issued 5,000 Equity shares of Rs. 100 each at a discount of 10%...
Journal Entries:
On issuance of shares:
Bank A/c Dr. 4,50,000
Discount on Issue of Shares A/c Dr. 50,000
To Equity Share Capital A/c 5,00,000
On receipt of application money:
Bank A/c Dr. 1,20,000
To Equity Share Application A/c 1,20,000
On allotment of shares:
Equity Share Application A/c Dr. 1,20,000
To Equity Share Allotment A/c 1,20,000
On receipt of allotment money:
Bank A/c Dr. 1,92,000
To Equity Share Allotment A/c 1,92,000
On forfeiture of shares:
Equity Share Allotment A/c Dr. 1,000
Equity Share Calls A/c Dr. 600
To Share Forfeiture A/c 1,600 (25* (40+60))
On reissuance of forfeited shares:
Bank A/c Dr. 1,760 (20*88)
Share Forfeiture A/c Dr. 240 (25*10)
To Equity Share Capital A/c 2,000
Balance Sheet of B Ltd.
Liabilities Amount (Rs.) Assets Amount (Rs.)
Share Capital 4,80,000 Fixed Assets 4,00,000
Reserves and Surplus 50,000 Investments 1,00,000
Creditors 10,000 Stock 30,000
Provision for Taxation 5,000 Debtors 50,000
Profit and Loss A/c 5,000 Cash and Bank Balance 1,75,000
Share Forfeiture A/c 240
Total 5,50,240 Total 5,50,240
Explanation:
Issue of shares:
B Ltd. issued 5,000 equity shares of Rs. 100 each at a discount of 10%, payable as follows:
- On Application: Rs. 25
- On Allotment: Rs. 40
- On Call: The balance
Therefore, the total value of shares issued by B Ltd. is Rs. 5,00,000 (5,000 shares * Rs. 100 each). The discount on the issue of shares is Rs. 50,000 (10% of Rs. 5,00,000).
Journal entry: Bank A/c Dr. Rs. 4,50,000, Discount on Issue of Shares A/c Dr. Rs. 50,000, To Equity Share Capital A/c Rs. 5,00,000.
Receipt of application money:
B Ltd. received Rs. 1,20,000 (4,800 shares * Rs. 25 per share) on the application of shares.
Journal entry: Bank A/c Dr. Rs. 1,20,000, To Equity Share Application A/c Rs. 1,20,000.
Allotment of shares:
B Ltd. allotted 4,800 shares in full and received allotment money of Rs. 1,92,000 (4,800 shares * Rs. 40 per share).
Journal entry: Equity Share Application A/c Dr. Rs. 1,20,000, To Equity Share Allotment A/c Rs. 1,20,000.
Receipt of allotment money:
B Ltd. received Rs.
On issuance of shares:
Bank A/c Dr. 4,50,000
Discount on Issue of Shares A/c Dr. 50,000
To Equity Share Capital A/c 5,00,000
On receipt of application money:
Bank A/c Dr. 1,20,000
To Equity Share Application A/c 1,20,000
On allotment of shares:
Equity Share Application A/c Dr. 1,20,000
To Equity Share Allotment A/c 1,20,000
On receipt of allotment money:
Bank A/c Dr. 1,92,000
To Equity Share Allotment A/c 1,92,000
On forfeiture of shares:
Equity Share Allotment A/c Dr. 1,000
Equity Share Calls A/c Dr. 600
To Share Forfeiture A/c 1,600 (25* (40+60))
On reissuance of forfeited shares:
Bank A/c Dr. 1,760 (20*88)
Share Forfeiture A/c Dr. 240 (25*10)
To Equity Share Capital A/c 2,000
Balance Sheet of B Ltd.
Liabilities Amount (Rs.) Assets Amount (Rs.)
Share Capital 4,80,000 Fixed Assets 4,00,000
Reserves and Surplus 50,000 Investments 1,00,000
Creditors 10,000 Stock 30,000
Provision for Taxation 5,000 Debtors 50,000
Profit and Loss A/c 5,000 Cash and Bank Balance 1,75,000
Share Forfeiture A/c 240
Total 5,50,240 Total 5,50,240
Explanation:
Issue of shares:
B Ltd. issued 5,000 equity shares of Rs. 100 each at a discount of 10%, payable as follows:
- On Application: Rs. 25
- On Allotment: Rs. 40
- On Call: The balance
Therefore, the total value of shares issued by B Ltd. is Rs. 5,00,000 (5,000 shares * Rs. 100 each). The discount on the issue of shares is Rs. 50,000 (10% of Rs. 5,00,000).
Journal entry: Bank A/c Dr. Rs. 4,50,000, Discount on Issue of Shares A/c Dr. Rs. 50,000, To Equity Share Capital A/c Rs. 5,00,000.
Receipt of application money:
B Ltd. received Rs. 1,20,000 (4,800 shares * Rs. 25 per share) on the application of shares.
Journal entry: Bank A/c Dr. Rs. 1,20,000, To Equity Share Application A/c Rs. 1,20,000.
Allotment of shares:
B Ltd. allotted 4,800 shares in full and received allotment money of Rs. 1,92,000 (4,800 shares * Rs. 40 per share).
Journal entry: Equity Share Application A/c Dr. Rs. 1,20,000, To Equity Share Allotment A/c Rs. 1,20,000.
Receipt of allotment money:
B Ltd. received Rs.
Community Answer
B Ltd. issued 5,000 Equity shares of Rs. 100 each at a discount of 10%...
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B Ltd. issued 5,000 Equity shares of Rs. 100 each at a discount of 10%, payable as follows :on Application : Rs. 25; on Allotment : Rs. 40; on Call : the balance. Public subscribed for 4,800 shares and allotment was made in full. One shareholder holding 25 shares failed to pay the allotment and calls. These were forfeited and 20 of those shares were reissued at Rs. 88 each. Pass journal entries and prepare Balance Sheet?
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B Ltd. issued 5,000 Equity shares of Rs. 100 each at a discount of 10%, payable as follows :on Application : Rs. 25; on Allotment : Rs. 40; on Call : the balance. Public subscribed for 4,800 shares and allotment was made in full. One shareholder holding 25 shares failed to pay the allotment and calls. These were forfeited and 20 of those shares were reissued at Rs. 88 each. Pass journal entries and prepare Balance Sheet? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about B Ltd. issued 5,000 Equity shares of Rs. 100 each at a discount of 10%, payable as follows :on Application : Rs. 25; on Allotment : Rs. 40; on Call : the balance. Public subscribed for 4,800 shares and allotment was made in full. One shareholder holding 25 shares failed to pay the allotment and calls. These were forfeited and 20 of those shares were reissued at Rs. 88 each. Pass journal entries and prepare Balance Sheet? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for B Ltd. issued 5,000 Equity shares of Rs. 100 each at a discount of 10%, payable as follows :on Application : Rs. 25; on Allotment : Rs. 40; on Call : the balance. Public subscribed for 4,800 shares and allotment was made in full. One shareholder holding 25 shares failed to pay the allotment and calls. These were forfeited and 20 of those shares were reissued at Rs. 88 each. Pass journal entries and prepare Balance Sheet?.
B Ltd. issued 5,000 Equity shares of Rs. 100 each at a discount of 10%, payable as follows :on Application : Rs. 25; on Allotment : Rs. 40; on Call : the balance. Public subscribed for 4,800 shares and allotment was made in full. One shareholder holding 25 shares failed to pay the allotment and calls. These were forfeited and 20 of those shares were reissued at Rs. 88 each. Pass journal entries and prepare Balance Sheet? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about B Ltd. issued 5,000 Equity shares of Rs. 100 each at a discount of 10%, payable as follows :on Application : Rs. 25; on Allotment : Rs. 40; on Call : the balance. Public subscribed for 4,800 shares and allotment was made in full. One shareholder holding 25 shares failed to pay the allotment and calls. These were forfeited and 20 of those shares were reissued at Rs. 88 each. Pass journal entries and prepare Balance Sheet? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for B Ltd. issued 5,000 Equity shares of Rs. 100 each at a discount of 10%, payable as follows :on Application : Rs. 25; on Allotment : Rs. 40; on Call : the balance. Public subscribed for 4,800 shares and allotment was made in full. One shareholder holding 25 shares failed to pay the allotment and calls. These were forfeited and 20 of those shares were reissued at Rs. 88 each. Pass journal entries and prepare Balance Sheet?.
Solutions for B Ltd. issued 5,000 Equity shares of Rs. 100 each at a discount of 10%, payable as follows :on Application : Rs. 25; on Allotment : Rs. 40; on Call : the balance. Public subscribed for 4,800 shares and allotment was made in full. One shareholder holding 25 shares failed to pay the allotment and calls. These were forfeited and 20 of those shares were reissued at Rs. 88 each. Pass journal entries and prepare Balance Sheet? in English & in Hindi are available as part of our courses for Commerce.
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B Ltd. issued 5,000 Equity shares of Rs. 100 each at a discount of 10%, payable as follows :on Application : Rs. 25; on Allotment : Rs. 40; on Call : the balance. Public subscribed for 4,800 shares and allotment was made in full. One shareholder holding 25 shares failed to pay the allotment and calls. These were forfeited and 20 of those shares were reissued at Rs. 88 each. Pass journal entries and prepare Balance Sheet?, a detailed solution for B Ltd. issued 5,000 Equity shares of Rs. 100 each at a discount of 10%, payable as follows :on Application : Rs. 25; on Allotment : Rs. 40; on Call : the balance. Public subscribed for 4,800 shares and allotment was made in full. One shareholder holding 25 shares failed to pay the allotment and calls. These were forfeited and 20 of those shares were reissued at Rs. 88 each. Pass journal entries and prepare Balance Sheet? has been provided alongside types of B Ltd. issued 5,000 Equity shares of Rs. 100 each at a discount of 10%, payable as follows :on Application : Rs. 25; on Allotment : Rs. 40; on Call : the balance. Public subscribed for 4,800 shares and allotment was made in full. One shareholder holding 25 shares failed to pay the allotment and calls. These were forfeited and 20 of those shares were reissued at Rs. 88 each. Pass journal entries and prepare Balance Sheet? theory, EduRev gives you an
ample number of questions to practice B Ltd. issued 5,000 Equity shares of Rs. 100 each at a discount of 10%, payable as follows :on Application : Rs. 25; on Allotment : Rs. 40; on Call : the balance. Public subscribed for 4,800 shares and allotment was made in full. One shareholder holding 25 shares failed to pay the allotment and calls. These were forfeited and 20 of those shares were reissued at Rs. 88 each. Pass journal entries and prepare Balance Sheet? tests, examples and also practice Commerce tests.
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