Question

Seema Ltd. offered for subscription 10,000 shares of ₹ 25 each, payable ₹ 5 per share on application, ₹ 10 per share on allotment (including ₹ 5 per share as premium), ₹ 5 per share as first call on the shares and the balance in two equal amounts at intervals of three months. All the shares were applied for and allotted. All the money was received except the second call and final call on 200 and 400 shares respectively. Pass the entries in the company's Journal, Cash Book and the ledger. Also show the company's Balance Sheet on completion of the above transactions.

Answer 1

Issued 10,000 shares of ₹ 25 each at premium of ₹ 5

Applied 10,000 shares

Payable as:

Application	₹	5
Allotment	₹	10	(5 + 5)
First Call	₹	5
Second Call	₹	5
Final Call	₹	5
	₹	30	(25 + 5)

Books of Seema Limited Cash Book
Dr.				Cr.
Date	Particulars	L.F.	Bank (₹)		Date	Particulars	L.F.	Bank (₹)
	Share Application		50,000
	Share Allotment		1,00,000
	Share First Call		50,000
	Share Second Call		49,000
	Share Final Call		48,000			Balance c/d		2,97,000
			2,97,000					2,97,000

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
	Share Application A/c	Dr.		50,000
	To Share Capital A/c				50,000
	(Application money of 10,000 shares of ₹ 5 each transferred to Share Capital)
	Share Allotment A/c	Dr.		1,00,000
	To Share Capital A/c				50,000
	To Securities Premium A/c				50,000
	(Share allotment of 10,000 shares transferred to Share Capital at ₹ 5 each and Securities Premium at ₹ 5 each)
	Share First Call A/c	Dr.		50,000
	To Share Capital A/c				50,000
	(First call due on 10,000 shares at ₹ 5 each)
	Share Second Call A/c	Dr.		50,000
	To Share Capital A/c				50,000
	(Second call due on 10,000 shares at 5 each)
	Call-in-Arrears A/c	Dr.		1,000
	To Share Second Call A/c				1,000
	(Second call outstanding on 200 shares at ₹ 5 each)
	Share Final Call A/c	Dr.		50,000
	To Shares Capital A/c				50,000
	(Final call due on 50,000 shares of ₹ to 5 per shares)
	Calls-in-Arrears A/c	Dr.		2,000
	To Shares Final Call A/c				2,000
	(Final call outstanding on 400 shares at ₹ 5 each)

Share Application Account
Dr.							Cr.
Date	Particulars	L.F.	Amount (₹)	Date	Particulars	L.F.	Amount (₹)
	Share Capital		50,000		Bank		50,000
			50,000				50,000

Share Allotment Account
Dr.							Cr.
Date	Particulars	L.F.	Amount (₹)	Date	Particulars	L.F.	Amount (₹)
	Share Capital		50,000		Bank		1,00,000
	Securities Premium		50,000
			1,00,000				1,00,000

Share First Call Account
Dr.							Cr.
Date	Particulars	L.F.	Amount (₹)	Date	Particulars	L.F.	Amount (₹)
	Share Capital		50,000		Bank		50,000
			50,000				50,000

Share Second Call Account
Dr.							Cr.
Date	Particulars	L.F.	Amount (₹)	Date	Particulars	L.F.	Amount (₹)
	Share Capital		50,000		Bank		49,000
					Calls-in-Arrears		1,000
			50,000				50,000

Share Final Call Account
Dr.									Cr.
Date		Particulars	L.F.	Amount (₹)	Date	Particulars	L.F.	Amount (₹)
		Share Capital		50,000		Bank		48,000
						Calls-in-Arrears		2,000
				50,000				50,000

Call-in-Arrears Account
Dr.									Cr.
Date		Particulars	L.F.	Amount (₹)	Date	Particulars	L.F.	Amount (₹)
		Share Second Call		1,000
		Share Final Call		2,000
						Balance c/d		3,000
				3,000				3,000

Share Capital Account
Dr.									Cr.
Date		Particulars	L.F.	Amount (₹)	Date	Particulars	L.F.	Amount (₹)
						Share Application		50,000
						Share Allotment		50,000
						Share First Call		50,000
						Share Second		50,000
		Balance c/d		2,50,000		Share Final Call		50,000
				2,50,000				2,50,000

Securities Premium Account
Dr.									Cr.
Date		Particulars	L.F.	Amount (₹)	Date	Particulars	L.F.	Amount (₹)
		Balance c/d		50,000		Share Allotment		50,000
				50,000				50,000

As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.

Balance Sheet
Particulars	Note No.	Amount (₹)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	2,47,000
b. Reserves and Surplus	2	50,000
2. Non-Current Liabilities
3. Current Liabilities
Total		2,97,000
II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	2,97,000
Total		2,97,000

NOTES TO ACCOUNTS

Note No.	Particulars		Amount (₹)
1	Share Capital
	Authorised Share Capital
	……. shares of ₹ 25 each		…
	Issued Share Capital
	10,000 shares of ₹ 25 each		2,50,000
	Subscribed, Called-up and Paid-up Share Capital
	10,000 shares of ₹ 25 each	2,50,000
	Less: Calls-in-Arrears	(3,000)	2,47,000
2	Reserves and Surplus
	Securities Premium		50,000
3	Cash and Cash Equivalents
	Cash at Bank		2,97,000