9. Company Accounts—
Accounting for Share Capital
SOLUTIONS TO EXERCISE
Disclosure of Share Capital in Company’s Balance Sheet
1. AN EXTRACT OF BALANCE SHEET OF HI-TECH LTD. as at...
Particulars Note No. `
I. EQUITY AND LIABILITIES
Shareholders’ Funds
Share Capital 1 44,90,000
Note to Accounts
Particulars `
1. Share Capital
Authorised Capital
50,000 Equity Shares of ` 100 each 50,00,000
Issued Capital
50,000 Equity Shares of ` 100 each 50,00,000
Subscribed Capital
Subscribed and Fully Paid-up
44,500 Equity Shares of ` 100 each 44,50,000
Subscribed but not Fully Paid-up
500 Equity shares of ` 100 each 50,000
Less: Calls-in-Arrears (500 × ` 20) 10,000 40,000
44,90,000
2. AN EXTRACT OF BALANCE SHEET OF FARM PRODUCTS LTD. as at...
Particulars Note No. `
I. EQUITY AND LIABILITIES
Shareholders’ Funds
Share Capital 1 20,00,000
Note to Accounts
Particulars `
1. Share Capital
Authorised Capital
5,00,000 Equity Shares of ` 10 each 50,00,000
Issued Capital
2,00,000 Equity Shares of ` 10 each 20,00,000
Subscribed Capital
Subscribed and Fully Paid-up
2,00,000 Equity Shares of ` 10 each 20,00,000
,9.2 Double Entry Book Keeping—CBSE XII (Solutions)
3. AN EXTRACT OF BALANCE SHEET OF GLOBAL TRADE LTD.
as at...
Particulars Note No. `
I. EQUITY AND LIABILITIES
Shareholders’ Funds
Share Capital 1 42,50,000
Note to Accounts
Particulars `
1. Share Capital
Authorised Capital
1,00,000 Equity Shares of ` 100 each 1,00,00,000
Issued Capital
50,000 Equity Shares of ` 100 each 50,00,000
Subscribed Capital
Subscribed and Fully Paid-up
25,000 Equity Shares of ` 100 each 25,00,000
Subscribed but not Fully Paid-up
25,000 Equity Shares of ` 100 each, ` 70 called-up (Note) 17,50,000 42,50,000
Note: Securities Premium is received along with allotment money, in the absence of any information. Since, the
company has not made the call, it has received ` 70 (` 30 + ` 60 – ` 20 (Premium)) on 25,000 Equity Shares.
4. AN EXTRACT OF BALANCE SHEET OF STAR LTD.
as at...
Particulars Note No. `
I. EQUITY AND LIABILITIES
Shareholders’ Funds
Share Capital 1 23,63,000
Note to Accounts
Particulars `
1. Share Capital
Authorised Capital
50,000 Equity Shares of ` 100 each 50,00,000
Issued Capital
25,000 Equity Shares of ` 100 each 25,00,000
Subscribed Capital
Subscribed and Fully Paid-up
23,150 Equity Shares of ` 100 each 23,15,000
Subscribed but not Fully Paid-up
600 Equity Shares of ` 100 each, ` 100 called-up 60,000
Less: Calls-in-Arrears (600 × ` 20) 12,000 48,000 23,63,000
,Company Accounts—Accounting for Share Capital 9.3
Issue of Shares for Cash at Par
5. In the Books of Grand Marketing Ltd.
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 25,00,000
To Equity Shares Application and Allotment A/c 25,00,000
(Application money received for 2,50,000 shares @ ` 10 each)
Equity Shares Application and Allotment A/c ...Dr. 25,00,000
To Equity Share Capital A/c 25,00,000
(Application money transferred to Share Capital A/c on allotment)
6. JOURNAL OF BHARAT LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 8,00,000
To Equity Shares Application and Allotment A/c 8,00,000
(Application money received for 80,000 shares @ ` 10 each)
Equity Shares Application and Allotment A/c ...Dr. 8,00,000
To Equity Share Capital A/c 8,00,000
(Application money transferred to Share Capital A/c on allotment)
7. JOURNAL OF AKANKSHA LEATHERS LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 2,00,000
To Shares Application A/c 2,00,000
(Application money received on 10,000 shares @ ` 20 each)
Shares Application A/c ...Dr. 2,00,000
To Share Capital A/c 2,00,000
(Application money transferred to Share Capital A/c on allotment)
Shares Allotment A/c ...Dr. 3,00,000
To Share Capital A/c 3,00,000
(Allotment money due on 10,000 shares @ ` 30 each)
Bank A/c ...Dr. 3,00,000
To Shares Allotment A/c 3,00,000
(Allotment money received)
Shares First Call A/c ...Dr. 2,00,000
To Share Capital A/c 2,00,000
(First call due on 10,000 shares @ ` 20 each)
Bank A/c ...Dr. 2,00,000
To Shares First Call A/c 2,00,000
(First call money received)
Shares Second and Final Call A/c ...Dr. 3,00,000
To Share Capital A/c 3,00,000
(Final call due on 10,000 shares @ ` 30 each)
Bank A/c ...Dr. 3,00,000
To Shares Second and Final Call A/c 3,00,000
(Second and final call money received)
, 9.4 Double Entry Book Keeping—CBSE XII (Solutions)
8. JOURNAL OF NATIONAL TEXTILES LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
(i) Shares Application A/c ...Dr. 90,000
To Share Capital A/c 90,000
(Application money transferred)
(ii) Shares Allotment A/c ...Dr. 1,20,000
To Share Capital A/c 1,20,000
(Allotment money due)
(iii) Shares First and Final Call A/c ...Dr. 90,000
To Share Capital A/c 90,000
(First and final call money due)
Dr. CASH BOOK Cr.
Particulars
` Particulars `
To Shares Application A/c 90,000 By Balance c/d 3,00,000
To Shares Allotment A/c 1,20,000
To Shares First and Call A/c 90,000
3,00,000 3,00,000
9. In the Books of Modern Dairies Ltd.
Dr. CASH BOOK (BANK COLUMN ONLY) Cr.
Particulars
` Particulars `
To Equity Shares Application A/c (1,000 × ` 10) 10,000 By Balance c/d 1,50,000
To 9% Pref. Shares Application A/c (500 × ` 25) 12,500
To Equity Shares Allotment A/c (1,000 × ` 40) 40,000
To 9% Pref. Shares Allotment A/c (500 × ` 25) 12,500
To Equity Shares First Call A/c (1,000 × ` 25) 25,000
To 9% Pref. Shares First and Final Call A/c (500 × ` 50) 25,000
To Equity Shares Second and Final Call A/c 25,000
(1,000 × ` 25)
1,50,000 1,50,000
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Equity Shares Application A/c ...Dr. 10,000
To Equity Share Capital A/c 10,000
(Application money transferred to Share Capital A/c on allotment)
9% Preference Shares Application A/c ...Dr. 12,500
To 9% Preference Share Capital A/c 12,500
(Application money transferred to Share Capital A/c on allotment)
Equity Shares Allotment A/c ...Dr. 40,000
To Equity Share Capital A/c 40,000
(Allotment money due on Equity Shares)
9% Pref. Shares Allotment A/c ...Dr. 12,500
To 9% Pref. Share Capital A/c 12,500
(Allotment money due on Preference Shares)
Equity Shares First Call A/c ...Dr. 25,000
To Equity Share Capital A/c 25,000
(First call money due on Equity Shares)
Accounting for Share Capital
SOLUTIONS TO EXERCISE
Disclosure of Share Capital in Company’s Balance Sheet
1. AN EXTRACT OF BALANCE SHEET OF HI-TECH LTD. as at...
Particulars Note No. `
I. EQUITY AND LIABILITIES
Shareholders’ Funds
Share Capital 1 44,90,000
Note to Accounts
Particulars `
1. Share Capital
Authorised Capital
50,000 Equity Shares of ` 100 each 50,00,000
Issued Capital
50,000 Equity Shares of ` 100 each 50,00,000
Subscribed Capital
Subscribed and Fully Paid-up
44,500 Equity Shares of ` 100 each 44,50,000
Subscribed but not Fully Paid-up
500 Equity shares of ` 100 each 50,000
Less: Calls-in-Arrears (500 × ` 20) 10,000 40,000
44,90,000
2. AN EXTRACT OF BALANCE SHEET OF FARM PRODUCTS LTD. as at...
Particulars Note No. `
I. EQUITY AND LIABILITIES
Shareholders’ Funds
Share Capital 1 20,00,000
Note to Accounts
Particulars `
1. Share Capital
Authorised Capital
5,00,000 Equity Shares of ` 10 each 50,00,000
Issued Capital
2,00,000 Equity Shares of ` 10 each 20,00,000
Subscribed Capital
Subscribed and Fully Paid-up
2,00,000 Equity Shares of ` 10 each 20,00,000
,9.2 Double Entry Book Keeping—CBSE XII (Solutions)
3. AN EXTRACT OF BALANCE SHEET OF GLOBAL TRADE LTD.
as at...
Particulars Note No. `
I. EQUITY AND LIABILITIES
Shareholders’ Funds
Share Capital 1 42,50,000
Note to Accounts
Particulars `
1. Share Capital
Authorised Capital
1,00,000 Equity Shares of ` 100 each 1,00,00,000
Issued Capital
50,000 Equity Shares of ` 100 each 50,00,000
Subscribed Capital
Subscribed and Fully Paid-up
25,000 Equity Shares of ` 100 each 25,00,000
Subscribed but not Fully Paid-up
25,000 Equity Shares of ` 100 each, ` 70 called-up (Note) 17,50,000 42,50,000
Note: Securities Premium is received along with allotment money, in the absence of any information. Since, the
company has not made the call, it has received ` 70 (` 30 + ` 60 – ` 20 (Premium)) on 25,000 Equity Shares.
4. AN EXTRACT OF BALANCE SHEET OF STAR LTD.
as at...
Particulars Note No. `
I. EQUITY AND LIABILITIES
Shareholders’ Funds
Share Capital 1 23,63,000
Note to Accounts
Particulars `
1. Share Capital
Authorised Capital
50,000 Equity Shares of ` 100 each 50,00,000
Issued Capital
25,000 Equity Shares of ` 100 each 25,00,000
Subscribed Capital
Subscribed and Fully Paid-up
23,150 Equity Shares of ` 100 each 23,15,000
Subscribed but not Fully Paid-up
600 Equity Shares of ` 100 each, ` 100 called-up 60,000
Less: Calls-in-Arrears (600 × ` 20) 12,000 48,000 23,63,000
,Company Accounts—Accounting for Share Capital 9.3
Issue of Shares for Cash at Par
5. In the Books of Grand Marketing Ltd.
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 25,00,000
To Equity Shares Application and Allotment A/c 25,00,000
(Application money received for 2,50,000 shares @ ` 10 each)
Equity Shares Application and Allotment A/c ...Dr. 25,00,000
To Equity Share Capital A/c 25,00,000
(Application money transferred to Share Capital A/c on allotment)
6. JOURNAL OF BHARAT LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 8,00,000
To Equity Shares Application and Allotment A/c 8,00,000
(Application money received for 80,000 shares @ ` 10 each)
Equity Shares Application and Allotment A/c ...Dr. 8,00,000
To Equity Share Capital A/c 8,00,000
(Application money transferred to Share Capital A/c on allotment)
7. JOURNAL OF AKANKSHA LEATHERS LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 2,00,000
To Shares Application A/c 2,00,000
(Application money received on 10,000 shares @ ` 20 each)
Shares Application A/c ...Dr. 2,00,000
To Share Capital A/c 2,00,000
(Application money transferred to Share Capital A/c on allotment)
Shares Allotment A/c ...Dr. 3,00,000
To Share Capital A/c 3,00,000
(Allotment money due on 10,000 shares @ ` 30 each)
Bank A/c ...Dr. 3,00,000
To Shares Allotment A/c 3,00,000
(Allotment money received)
Shares First Call A/c ...Dr. 2,00,000
To Share Capital A/c 2,00,000
(First call due on 10,000 shares @ ` 20 each)
Bank A/c ...Dr. 2,00,000
To Shares First Call A/c 2,00,000
(First call money received)
Shares Second and Final Call A/c ...Dr. 3,00,000
To Share Capital A/c 3,00,000
(Final call due on 10,000 shares @ ` 30 each)
Bank A/c ...Dr. 3,00,000
To Shares Second and Final Call A/c 3,00,000
(Second and final call money received)
, 9.4 Double Entry Book Keeping—CBSE XII (Solutions)
8. JOURNAL OF NATIONAL TEXTILES LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
(i) Shares Application A/c ...Dr. 90,000
To Share Capital A/c 90,000
(Application money transferred)
(ii) Shares Allotment A/c ...Dr. 1,20,000
To Share Capital A/c 1,20,000
(Allotment money due)
(iii) Shares First and Final Call A/c ...Dr. 90,000
To Share Capital A/c 90,000
(First and final call money due)
Dr. CASH BOOK Cr.
Particulars
` Particulars `
To Shares Application A/c 90,000 By Balance c/d 3,00,000
To Shares Allotment A/c 1,20,000
To Shares First and Call A/c 90,000
3,00,000 3,00,000
9. In the Books of Modern Dairies Ltd.
Dr. CASH BOOK (BANK COLUMN ONLY) Cr.
Particulars
` Particulars `
To Equity Shares Application A/c (1,000 × ` 10) 10,000 By Balance c/d 1,50,000
To 9% Pref. Shares Application A/c (500 × ` 25) 12,500
To Equity Shares Allotment A/c (1,000 × ` 40) 40,000
To 9% Pref. Shares Allotment A/c (500 × ` 25) 12,500
To Equity Shares First Call A/c (1,000 × ` 25) 25,000
To 9% Pref. Shares First and Final Call A/c (500 × ` 50) 25,000
To Equity Shares Second and Final Call A/c 25,000
(1,000 × ` 25)
1,50,000 1,50,000
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Equity Shares Application A/c ...Dr. 10,000
To Equity Share Capital A/c 10,000
(Application money transferred to Share Capital A/c on allotment)
9% Preference Shares Application A/c ...Dr. 12,500
To 9% Preference Share Capital A/c 12,500
(Application money transferred to Share Capital A/c on allotment)
Equity Shares Allotment A/c ...Dr. 40,000
To Equity Share Capital A/c 40,000
(Allotment money due on Equity Shares)
9% Pref. Shares Allotment A/c ...Dr. 12,500
To 9% Pref. Share Capital A/c 12,500
(Allotment money due on Preference Shares)
Equity Shares First Call A/c ...Dr. 25,000
To Equity Share Capital A/c 25,000
(First call money due on Equity Shares)
