Sumit Machine Ltd issued 50,000 shares of Rs 100 each at discount of 5%. The shares were payable Rs 25 on application, Rs 40 on allotment and Rs 30 on first and final call. The issue were fully subscribed and money were duly received except the final call on 400 shares. The discount was adjusted on allotment. Give journal entries and prepare balance sheet.
Sumit Machine Ltd issued 50,000 shares of Rs 100 each at discount of 5%. The shares were payable Rs 25 on application, Rs 40 on allotment and Rs 30 on first and final call. The issue were fully subscribed and money were duly received except the final call on 400 shares. The discount was adjusted on allotment. Give journal entries and prepare balance sheet.
Books of Sumit Machine Ltd.
Date
Particulars
L.F.
Debit
Amount
Rs
Credit
Amount
Rs
Bank A/c
Dr.
12,50,000
To Share Application A/c
12,50,000
(Share Application money received on application for 50,000 shares @ Rs 25 per share)
Share Application A/c
Dr.
12,50,000
To Share Capital A/c
12,50,000
(Share Application money of 50,000 shares transferred to Share Capital Account)
Share Allotment A/c
Dr.
20,00,000
Discount on Issue of Shares
Dr.
2,50,000
To Share Capital A/c
22,50,000
(Share Allotment money due on 50,000 shares @ Rs 40 each at discount of Rs 5)
Bank A/c
Dr.
20,00,000
To Share Allotment A/c
20,00,000
(Allotment money received for 50,000 shares @ Rs 40 per share)
Share First and Final Call A/c
Dr.
15,00,000
To Share Capital A/c
15,00,000
(Share First and Final call due on 50,000 shares @ Rs 30 per share)
Bank A/c
Dr.
14,88,000
Calls in Arrears A/c
Dr.
12,000
To Share First and Final Call A/c
15,00,000
(Share First and Final Call received except 400 shares)
Sumit Machine Ltd.
Balance Sheet
Particulars
Note No.
Amount
(Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital
1
49,88,000
2. Non-Current Liabilities
3. Current Liabilities
Total
49,88,000
II. Assets
1. Non-Current Assets
a. Other Non-Current Assets
2
2,50,000
2. Current Assets
a. Cash and Cash Equivalents
3
47,38,000
Total
49,88,000
NOTES TO ACCOUNTS
Note No.
Particulars
Amount
(Rs)
1
Share Capital
Authorised Share Capital
…….. shares of Rs 100 each
-
Issued Share Capital
50,000 shares of Rs 100 each
50,00,000
Subscribed, Called-up and Paid-up Share Capital
50,000 shares of Rs 100 each
50,00,000
Less: Calls-in-Arrears
(12,000)
49,88,000
2
Other Non-Current Assets
Discount on Issue of Shares
2,50,000
3
Cash and Cash Equivalents
Cash at Bank
47,38,000
|
Books of Sumit Machine Ltd. |
||||||
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
|
Bank A/c |
Dr. |
|
12,50,000 |
|
|
|
|
|
To Share Application A/c |
|
|
12,50,000 |
|
|
|
(Share Application money received on application for 50,000 shares @ Rs 25 per share) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Share Application A/c |
Dr. |
|
12,50,000 |
|
|
|
|
|
To Share Capital A/c |
|
|
12,50,000 |
|
|
|
(Share Application money of 50,000 shares transferred to Share Capital Account) |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
20,00,000 |
|
|
|
|
Discount on Issue of Shares |
Dr. |
|
2,50,000 |
|
|
|
|
|
To Share Capital A/c |
|
|
|
22,50,000 |
|
|
(Share Allotment money due on 50,000 shares @ Rs 40 each at discount of Rs 5) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Bank A/c |
Dr. |
|
20,00,000 |
|
|
|
|
|
To Share Allotment A/c |
|
|
|
20,00,000 |
|
|
(Allotment money received for 50,000 shares @ Rs 40 per share) |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
Share First and Final Call A/c |
Dr. |
|
15,00,000 |
|
|
|
|
|
To Share Capital A/c |
|
|
15,00,000 |
|
|
|
(Share First and Final call due on 50,000 shares @ Rs 30 per share) |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
14,88,000 |
|
|
|
|
Calls in Arrears A/c |
Dr. |
|
12,000 |
|
|
|
|
|
To Share First and Final Call A/c |
|
|
15,00,000 |
|
|
|
(Share First and Final Call received except 400 shares) |
|
|
|
||
|
|
|
|
|
|
|
|
|
Sumit Machine Ltd. |
||
|
Balance Sheet |
||
|
Particulars |
Note No. |
Amount (Rs) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
a. Share Capital |
1 |
49,88,000 |
|
2. Non-Current Liabilities |
|
|
|
3. Current Liabilities |
|
|
|
Total |
|
49,88,000 |
|
II. Assets |
|
|
|
1. Non-Current Assets |
|
|
|
a. Other Non-Current Assets |
2 |
2,50,000 |
|
2. Current Assets |
|
|
|
a. Cash and Cash Equivalents |
3 |
47,38,000 |
|
Total |
|
49,88,000 |
|
|
|
|
NOTES TO ACCOUNTS
|
Note No. |
Particulars |
Amount (Rs) |
|
|
1 |
Share Capital |
|
|
|
|
Authorised Share Capital |
|
|
|
|
…….. shares of Rs 100 each |
- |
|
|
|
Issued Share Capital |
|
|
|
|
50,000 shares of Rs 100 each |
50,00,000 |
|
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
|
50,000 shares of Rs 100 each |
50,00,000 |
|
|
|
Less: Calls-in-Arrears |
(12,000) |
49,88,000 |
|
|
|
|
|
|
2 |
Other Non-Current Assets |
|
|
|
|
Discount on Issue of Shares |
2,50,000 |
|
|
|
|
|
|
|
3 |
Cash and Cash Equivalents |
|
|
|
|
Cash at Bank |
47,38,000 |
|
|
|
|
|
|
