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Mother Ltd. Issued 10000 equity shares of 10 each payable as ₹1 on app . ,₹2 on all.,₹7 on call .All money were duly received with the following exception A,who holds 100 shares failed to pay the money on all. and calls. B ,who holds 50 shares failed to pay the money on calls . Prepare journal entries and the Balance sheet in the books of company?
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Mother Ltd. Issued 10000 equity shares of 10 each payable as ₹1 on app...
Journal Entries:
1. To record the issue of equity shares:
Bank A/c Dr. = 100,000
Equity Share Capital A/c Dr. = 10,000
To Equity Share Application A/c = 100,000
To Equity Share Allotment A/c = 20,000
To Equity Share Call A/c = 70,000
2. To record the forfeiture of shares held by A:
Equity Share Allotment A/c Dr. = 2,000
Equity Share Call A/c Dr. = 7,000
To Equity Share Forfeiture A/c = 9,000
3. To record the reissue of shares forfeited from A:
Equity Share Forfeiture A/c Dr. = 9,000
To Equity Share Capital A/c = 9,000
4. To record the forfeiture of shares held by B:
Equity Share Call A/c Dr. = 3,500
To Equity Share Forfeiture A/c = 3,500
Balance Sheet:
Liabilities:
Equity Share Capital = 10,000
Add: Forfeited Shares Reissued = 9,000
Less: Calls in Arrears = 3,500
Net Equity Share Capital = 15,500
Assets:
Bank = 100,000
Explanation:
- The company issued 10,000 equity shares of ₹10 each, with ₹1 payable on application, ₹2 payable on allotment, and ₹7 payable on call.
- All the money was received except for A, who holds 100 shares and failed to pay the money on allotment and calls, and B, who holds 50 shares and failed to pay the money on calls.
- The journal entries were made to record the issue of equity shares and the forfeiture of shares held by A and B.
- The balance sheet was prepared, showing the net equity share capital after reissuing the forfeited shares and deducting the calls in arrears.
- The bank account shows the total amount received from the issue of equity shares.
- This information helps the stakeholders to understand the financial position of the company and make informed decisions.
1. To record the issue of equity shares:
Bank A/c Dr. = 100,000
Equity Share Capital A/c Dr. = 10,000
To Equity Share Application A/c = 100,000
To Equity Share Allotment A/c = 20,000
To Equity Share Call A/c = 70,000
2. To record the forfeiture of shares held by A:
Equity Share Allotment A/c Dr. = 2,000
Equity Share Call A/c Dr. = 7,000
To Equity Share Forfeiture A/c = 9,000
3. To record the reissue of shares forfeited from A:
Equity Share Forfeiture A/c Dr. = 9,000
To Equity Share Capital A/c = 9,000
4. To record the forfeiture of shares held by B:
Equity Share Call A/c Dr. = 3,500
To Equity Share Forfeiture A/c = 3,500
Balance Sheet:
Liabilities:
Equity Share Capital = 10,000
Add: Forfeited Shares Reissued = 9,000
Less: Calls in Arrears = 3,500
Net Equity Share Capital = 15,500
Assets:
Bank = 100,000
Explanation:
- The company issued 10,000 equity shares of ₹10 each, with ₹1 payable on application, ₹2 payable on allotment, and ₹7 payable on call.
- All the money was received except for A, who holds 100 shares and failed to pay the money on allotment and calls, and B, who holds 50 shares and failed to pay the money on calls.
- The journal entries were made to record the issue of equity shares and the forfeiture of shares held by A and B.
- The balance sheet was prepared, showing the net equity share capital after reissuing the forfeited shares and deducting the calls in arrears.
- The bank account shows the total amount received from the issue of equity shares.
- This information helps the stakeholders to understand the financial position of the company and make informed decisions.
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Mother Ltd. Issued 10000 equity shares of 10 each payable as ₹1 on app . ,₹2 on all.,₹7 on call .All money were duly received with the following exception A,who holds 100 shares failed to pay the money on all. and calls. B ,who holds 50 shares failed to pay the money on calls . Prepare journal entries and the Balance sheet in the books of company?
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Mother Ltd. Issued 10000 equity shares of 10 each payable as ₹1 on app . ,₹2 on all.,₹7 on call .All money were duly received with the following exception A,who holds 100 shares failed to pay the money on all. and calls. B ,who holds 50 shares failed to pay the money on calls . Prepare journal entries and the Balance sheet in the books of company? 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 Mother Ltd. Issued 10000 equity shares of 10 each payable as ₹1 on app . ,₹2 on all.,₹7 on call .All money were duly received with the following exception A,who holds 100 shares failed to pay the money on all. and calls. B ,who holds 50 shares failed to pay the money on calls . Prepare journal entries and the Balance sheet in the books of company? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mother Ltd. Issued 10000 equity shares of 10 each payable as ₹1 on app . ,₹2 on all.,₹7 on call .All money were duly received with the following exception A,who holds 100 shares failed to pay the money on all. and calls. B ,who holds 50 shares failed to pay the money on calls . Prepare journal entries and the Balance sheet in the books of company?.
Mother Ltd. Issued 10000 equity shares of 10 each payable as ₹1 on app . ,₹2 on all.,₹7 on call .All money were duly received with the following exception A,who holds 100 shares failed to pay the money on all. and calls. B ,who holds 50 shares failed to pay the money on calls . Prepare journal entries and the Balance sheet in the books of company? 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 Mother Ltd. Issued 10000 equity shares of 10 each payable as ₹1 on app . ,₹2 on all.,₹7 on call .All money were duly received with the following exception A,who holds 100 shares failed to pay the money on all. and calls. B ,who holds 50 shares failed to pay the money on calls . Prepare journal entries and the Balance sheet in the books of company? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mother Ltd. Issued 10000 equity shares of 10 each payable as ₹1 on app . ,₹2 on all.,₹7 on call .All money were duly received with the following exception A,who holds 100 shares failed to pay the money on all. and calls. B ,who holds 50 shares failed to pay the money on calls . Prepare journal entries and the Balance sheet in the books of company?.
Solutions for Mother Ltd. Issued 10000 equity shares of 10 each payable as ₹1 on app . ,₹2 on all.,₹7 on call .All money were duly received with the following exception A,who holds 100 shares failed to pay the money on all. and calls. B ,who holds 50 shares failed to pay the money on calls . Prepare journal entries and the Balance sheet in the books of company? in English & in Hindi are available as part of our courses for B Com.
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Here you can find the meaning of Mother Ltd. Issued 10000 equity shares of 10 each payable as ₹1 on app . ,₹2 on all.,₹7 on call .All money were duly received with the following exception A,who holds 100 shares failed to pay the money on all. and calls. B ,who holds 50 shares failed to pay the money on calls . Prepare journal entries and the Balance sheet in the books of company? defined & explained in the simplest way possible. Besides giving the explanation of
Mother Ltd. Issued 10000 equity shares of 10 each payable as ₹1 on app . ,₹2 on all.,₹7 on call .All money were duly received with the following exception A,who holds 100 shares failed to pay the money on all. and calls. B ,who holds 50 shares failed to pay the money on calls . Prepare journal entries and the Balance sheet in the books of company?, a detailed solution for Mother Ltd. Issued 10000 equity shares of 10 each payable as ₹1 on app . ,₹2 on all.,₹7 on call .All money were duly received with the following exception A,who holds 100 shares failed to pay the money on all. and calls. B ,who holds 50 shares failed to pay the money on calls . Prepare journal entries and the Balance sheet in the books of company? has been provided alongside types of Mother Ltd. Issued 10000 equity shares of 10 each payable as ₹1 on app . ,₹2 on all.,₹7 on call .All money were duly received with the following exception A,who holds 100 shares failed to pay the money on all. and calls. B ,who holds 50 shares failed to pay the money on calls . Prepare journal entries and the Balance sheet in the books of company? theory, EduRev gives you an
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