Page 47 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Accounting for Companies-I

Notes All the shares were subscribed by the public. The board of directors accepted all the
applications. Both the calls were made. All the moneys were duly received. You are
required to:

(i) pass journal entries for all the transactions including cash transactions,
(ii) prepare cash book,
(iii) show ledger accounts, and
(iv) draw balance sheet after the receipt of final call money.

3. Subhash Limited was formed on 1st Jan, 2006 with an authorised capital of 3,00,000
divided into 10,000 equity shares of 100 each and 2,000; 9% preference shares of 100
each. The share capital was to be collected as under:

Equity shares 9% Preference shares

With application 15 20
On allotment 20 30
On first call 30 20

On second and final call 35 30
All the shares were subscribed. The first and second and final calls on 160 equity shares
and 240; 9% preference shares were not received. Enter the transactions in the journal of
the company. Ledger accounts are not required.
4. Cheema Limited was floated with a capital of 50,00,000 divided into 50,000 shares of
100 each. It offered 25,000 shares on the following terms: 2 per share on application, 3
on allotment, 3 on first call and 2 on final call. Applications were received for 40,000
shares. Applicants for 15,000 shares were sent letters of regret and application money was
refunded. All the money due on shares was duly received. Pass the necessary journal
entries and the balance sheet.
5. A company with an authorised capital of 15,00,000 invited applications for 1,00,000
shares of 10 each. The shares are payable as follows:
On application 3, on allotment 3 and on first and final call 4.
There was over-subscription and applications were received for 2,13,000 shares. The
allotment of shares was made as under:
To applicants of 20,000 shares 20,000 shares
To applicants of 23,000 shares Nil
To applicants of 1,70,000 shares 80,000 shares
Excess application money paid on applications was adjusted against sums due on allotment
and first call. All money due were received.
Pass journal entries, ledger and balance sheet.
6. Anand Co. Limited invited the applications for 1,50,000 shares of 10 each payable as
follows:
With applications 2 on 1st March 2005.
On allotment 3 on 1st April 2005.
On first call 2 on 1st September 2005.

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