12th Standard Accountancy English Medium - Company Accounts 5 Mark Book Back Question Paper and Answer Key 2022 - 2023 | QB365

12th Standard Syllabus & Materials

12th Standard

TN 12th Computer Applications மின்னணு தரவு பரிமாற்றம் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications மின் - வணிக பாதுகாப்பு அமைப்புகள் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications மின்னணு செலுத்தல் முறைகள் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications மின் - வணிகம் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications திறந்த மூல கருத்துருக்கள் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications வலையமைப்பு வடமிடல் Sample Question Papers Study Material - QB365 Set A

12th Standard Accountancy English Medium - Company Accounts 5 Mark Book Back Question Paper and Answer Key 2022 - 2023

Published on: 01/09/2022

QB365 provides a detailed and simple solution for every Possible Book Back Questions in Class 12 Accountancy Subject - Company Accounts, English Medium. It will help Students to get more practice questions, Students can Practice these question papers in addition to score best marks.

Download Tamil Nadu 12th Standard Accountancy question papers, model tests, one-mark questions, important questions, and public exam papers in PDF format. Free study materials and answer keys for TN State Board students.

Questions + Answers key

Take MCQ Accountancy Test

QB365 Student Learing Managemnet System

Std: 12th Standard - Accountancy

chapter: - Model Question paper

Visit QB365-SLMS - https://www.qb365.in/slms/ Complete Questions and Answers

Questions:

Generic 5

25 x 5 = 125

Aruna Mills Ltd. with a registered capital of Rs.5,00,000 in equity shares of Rs.10 each, issued 20,000 of such shares payable as follows; Rs. 4 per share on application,Rs.4 per share on allotment and Rs.2 per share on first and final call. The issue was duly subscribed. All the money payable was duly received. But on allotment, one shareholder paid the entire balance on his holding of 300 shares. Give journal entries to record the above.

Vairam Ltd. issued 60,000 shares of Rs.10 each at a premium of Rs.2 per share payable as follows:

On application	Rs.6
On allotment	Rs.4 (including premium)
On first and final call	Rs.2

Issue was fully subscribed and the amounts due were received except Saritha to whom 1,000 shares were allotted who failed to pay the allotment money and first and final call money. Her shares were forfeited. All the forfeited shares were reissued to Parimala at Rs.7 per share. Pass journal entries.

Kasthuri Ltd. had allotted 20,000 equity shares of Rs.10 each at a premium of Rs.2 each to applicants of 30,000 shares on a pro rata basis. The amount payable was Rs.3 on application, Rs.5 on allotment (including premium of Rs.2 each) and Rs.2 on first call and Rs.2 on final call. Subin, a shareholder failed to pay the first call and final call on his 500 shares. All the shares were forfeited and out of them 400 shares were reissued @ Rs.8 per share. Pass necessary journal entries.

United Industries Ltd. issued shares of Rs.10 each at 10% premium payable Rs.3 on application, Rs.4 on allotment (including premium), Rs.2 on first call and Rs.2 on second and final call.
Journalise the transactions relating to forfeiture of shares for the following situations:
(i) Manoj who holds 250 shares failed to pay the second and final call and his shares were forfeited.
(ii) Manoj who holds 250 shares failed to pay the allotment money and first call and second and final call and his shares were forfeited.
(iii) Manoj who holds 250 shares failed to pay the allotment money and first call money and his shares were forfeited after the first call.

Viswanath Furniture Ltd. invited applications for 20,000 shares of Rs.10 each at a premium of Rs.2 per share payable.
Rs.2 on application
Rs.5 (including premium) on allotment
Rs.5 on first and final call
There was over subscription and applications were received for 30,000 shares and the excess applications were rejected by the directors. All the money due were received. Pass the journal entries.

Kanchana Ltd. issued 50,000 shares of Rs.10 each payable as under.

On application	Rs.1
On allotment	Rs.5
On first call	Rs.2
On final call	Rs.2

Applications were received for 70,000 shares. Applications for 8,000 shares were rejected and allotment was made proportionately towards remaining applications. The directors made both the calls and the all the amount were received except the final call on 1,500 shares which were subsequently forfeited. Later 1,200 forfeited shares were reissued by receiving Rs.8 per share. Give journal entries.

Simon Ltd issued 50,000 equity shares of Rs.10 each at par payable on application Rs.1 per share, on allotment Rs.5 per share, on first call Rs.2 per share and on second and final call Rs.2 per share. The issue was fully subscribed and all the amounts were duly received with the exception of 2,000 shares held by Chezhian, who failed to pay the second and final call. His shares were forfeited and reissued to Elango at Rs.8 per share. Journalise the above transactions.

Anjali Flour Ltd. with a registered capital of Rs.4,00,000 in equity shares of Rs.10 each, issued 30,000 of such shares; payable Rs.2 per share on application, Rs.5 per share on allotment and Rs.3 share on first call. The issue was duly subscribed.
All the money payable was duly received but on allotment, one shareholder paid the entire balance on his holding of 500 shares. Give journal entries to record the transactions.

Lalitha Ltd. offered 30,000 equity shares of Rs.10 each to the public payable Rs.2 per share on application, Rs.3 on share allotment and the balance when required. Applications for 50,000 shares were received on which the directors allotted as:

Applicants for 10,000 shares	Full
Applicants for 35,000 shares	20,000 shares (excess money will be utilised for allotment)
Applicants for 5,000 shares	Nil

All the money due was received. Pass journal entries upto the receipt of allotment.

10.

Gaja Ltd issued 40,000 shares of Rs.10 each to the public payable Rs.2 on application, Rs.5 on allotment and Rs.3 on first and final call. Applications were received for 50,000 shares. The Directors decided to allot 40,000 shares on pro rata basis and surplus of application money was utilised for allotment. Pass journal entries assuming that the amounts due were received.

11.

Saranya Ltd. issued 20,000 equity shares of Rs.10 each to the public at par. The details of the amount payable on the shares are as follows:
On application Rs.3 per share On allotment Rs.4 per share On first and final call Rs.3 per share Application money was received on 30,000 shares. Excess application money was refunded immediately. Pass journal entries to record the above.

12.

Sampath company issued 25,000 shares at Rs.10 per share payable Rs.3 on application, Rs.4 on allotment, Rs.3 on first and final call. The public subscribed for 24,000 shares. The directors allotted all the 24,000 shares and received the money duly. Pass necessary journal entries.

13.

Progress Ltd. issued 50,000 ordinary shares of Rs.10 each, payable Rs.2 on application, Rs.4 on allotment, Rs.2 on first call and Rs.2 on final call. All the shares are subscribed and amount was duly received. Pass journal entries.

14.

State the differences between preference shares and equity shares.

15.

Thangam Ltd. issued 50,000 shares of Rs.10 each at a premium of Rs.2 per share payable as follows:

On application	Rs.5
On allotment	Rs.5 (including premium)
On first and final call	Rs.2

Issue was fully subscribed and the amounts due were received except Priya to whom 500 shares were allotted who failed to pay the allotment money and fist and final call money. Her shares were forfeited. All the forfeited shares were reissued to Devi at Rs.8 per share. Pass journal entries.

16.

Divya Ltd. allotted 10,000 equity shares of Rs.10 each at a premium of Rs.2 per share to applicants of 14,000 shares on a pro rata basis. The excess application money will be adjusted towards allotment money. The amount payable was Rs.2 on application, Rs.5 on allotment (including premium of Rs.2 each) and Rs.3 on first call and Rs.2 on final call. Vikas, a shareholder failed to pay the first call and final call on his 300 shares. All the shares were forfeited and out of them 200 shares were reissued @ Rs.9 per share. Pass the necessary journal entries.

17.

Keerthiga Company issued shares of Rs.10 each at 10% premium, payable Rs.2 on application, Rs.3 on allotment (including premium), Rs.3 on first call and Rs.3 on second and final call. Journalise the transactions relating to forfeiture of shares for the following situations:
(i) Mohan who holds 50 shares failed to pay the second and final call and his shares were forfeited.
(ii) Mohan who holds 50 shares failed to pay the allotment money, first call and second and final call money and his shares were forfeited.
(iii) Mohan who holds 50 shares failed to pay the allotment money and first call and his shares were forfeited after the first call.

18.

Shero Health Care Ltd. invited applications for 3,00,000 equity shares of Rs.10 each at a premium of Rs.2 per share payable as follows:
Rs.3 on application
Rs.5 (including premium) on allotment
Rs.4 on first and final call
There was over subscription and applications were received for 4,00,000 shares and the excess applications were rejected by the directors. All the money due were received. Pass the journal entries.

19.

X company issued 10,000 equity shares of Rs.10 each payable as under:

On application	Rs.2
On allotment	Rs.4
On first call	Rs.2
On final call	Rs.2

Applications were received for 30,000 shares. Applications for 10,000 shares were rejected and allotment was made proportionately towards remaining applications and the excess application money is adjusted towards allotment money. The directors made both the calls and the all the amount were received except the final call on 600 shares which were subsequently forfeited. Later 400 forfeited shares were reissued as fully paid by receiving Rs.7 per share.

20.

Jenifer Ltd. issued 10,000 equity shares of Rs.10 each at par payable on application Rs.3 per share, on allotment Rs.3 per share, on first call Rs.2 per share and on second and final call Rs.2 per share. The issue was fully subscribed and all the amounts were duly received with the exception of 100 shares held by Subbu, who failed to pay the second and final call. His shares were forfeited and reissued to Hema at Rs.7 per share. Journalise the above transactions.

21.

Sudha Ltd. offered 1,00,000 shares of Rs.10 each to the public payable Rs.3 on application, Rs.4 on share allotment and the balance when required. Applications for 1,40,000 shares were received on which the directors allotted as:
Applicants for 60,000 shares - Full
Applicants for 75,000 shares - 40,000 shares (excess money will be utilised for allotment)
Applicants for 5,000 shares - Nil
All the money due was received. Pass journal entries upto the receipt of allotment.

22.

Khan Ltd. issued 50,000 shares of Rs.10 each to the public payable Rs.4 on application, Rs.4 on allotment and Rs.2 on first and final call. Applications were received for 65,000 shares. The directors decided to allot 50,000 shares on pro rata basis and surplus application money was utilised for allotment. Pass journal entries assuming that the amounts due were received.

23.

Bharath Ltd. issued 1,00,000 equity shares of Rs. 10 each to the public at par. The details of the amount payable on the shares are as follows:

On application	Rs.5 per share
On allotment	Rs.3 per share
On first and final call	Rs.2 per share

Application money was received for 1,20,000 shares. Excess application money was refunded immediately. Pass journal entries to record the above.

24.

Joy Company issued 10,000 equity shares at Rs.10 per share payable Rs.5 on application, Rs.3 on allotment and Rs.2 on first and final call. The public subscribed for 9,000 shares. The directors allotted all the 9,000 shares and duly received the money. Pass the necessary journal entries.

25.

Thai Ltd. issued 1,00,000 equity shares of Rs. 10 each, payable Rs. 5 on application, Rs. 2 on allotment Rs. 2 on first call and Rs. 1 on final call. All the shares are subscribed and amount was duly received. Pass journal entries.

Visit QB365-SLMS - https://www.qb365.in/slms/

Answers Key:

Generic 5

25 x 5 = 125

**In the books of Aruna Mills Ltd. Journal entries**
Particulars	Debit Rs.	Credit Rs.
Bank A/c (20,000 × 4)Dr	80,000
To Share application A/		80,000
(Application money received
Share application A/cDr.	80,000
To Share capital A/c		80,000
(Application money transferred to share capital A/c)
Share allotment A/c (20,000 × 4) Dr.	80,000
To Share capital A/c		80,000
(Allotment money due)
Bank A/c (20,000 × 4) + (300x2) Dr.	80,600
To Share allotment A/c		80,000
To Calls in advance A/c (300 × 2)		600
(Allotment money received)
Share first and final call A/c (20,000 × 2) Dr.	40,000
To Share capital A/c		40,000
(First and final call money due)
Bank A/c (19,700 × 2) Dr.	39,400
Calls in advance A/c Dr.	600
To Share first and final call A/c		40,000
(First call money received and calls in advance adjusted)

In the books of Vairam Ltd. Journal Entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c	Dr	3,60,000
To Share application A/c			3,60,000
(Aplication money received)
Share application A/c	Dr	3,60,000
To Share capital A/c			3,60,000
(Transfer of a application mone to share capital account)
Share allotment A/c	Dr	2,40,000
To Share capital A/c			1,20,000
To Securities premium A/c			1,20,000
(Allotment mone due)
Bank A/c	Dr	2,36,000
To Share allotment A/c			2,36,000
(Allotment money received except on 1,000 Shares)
Share first and final call A/c	Dr	1,20,000
To Share capital A/c			1,20,000
(First and final call mone due)
Bank A/c	Dr	1,18,000
To Share first and final call a/c			1,18,000
(First and final call money received)
Share capital A/c	Dr	10,000
Securities premium a/c		2,000
To Share allotment A/c			4,000
To Share first and final call A/c			2,000
To Forfeited shares A/c			6,000
(1000 shares forfeited for non payment of allotment and first and final call mone )
Bank A/c	Dr	7,000
Forfeited shares A/c	Dr	3,000
To Share capital A/c			10,000
(1000 Forfeited shares reissued
Forfeited shares A/c (6000 - 3000)	Dr	3,000
To Capital reserve A/c			3,000
(Gain on reissue offorfeited shares transferred to capital reserve)

In the books of Kasthuri Ltd., Journal Entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c	Dr	30,000
To Share application A/c			30,000
(Application money for shares received)
Share application A/c	Dr	20,000
To Share capital A/c			20,000
(Application money transferred to share capital)
Share application A/c	Dr	10,000
To Share allotment A/c			10,000
(Excess application money adjusted towards allotment)
Share allotment A/c	Dr	1,00,000
To Share capital A/c			60,000
To Securities premium A/c			40,000
(Allotment money due)
Bank A/c	Dr	90,000
To Share allotment A/c			90,000
(Allotment money received)
Share first call A/c	Dr	40,000
To Share capital A/c			40,000
(First call amount due)
Bank A/c	Dr	39,000
To Share first call A/c			39,000
(First call money received for shares)
Share second and final call A/c	Dr	40,000
To Share capital A/c			40,000
(Second and final call amount due)
Bank A/c	Dr	39,000
To Share second and final call A/c			39,000
(Second and final call money received for @ 19,500 shares)
Share capital	Dr	5,000
To Share first call A/c			1,000
To Share second and final call A/c			1,000
To Shares forfeited A/c			3,000
(Forfeiture of 500 shares for non-payment first and second calls)
Bank A/c	Dr	3,200
Shares forfeited A/c	Dr	800
To Share capital A/c			4,000
(Reissue of forfeited shares)
Shares forfeited A/c	Dr	1,600
To Capital reserve A/c			1,600
(Profit on reissue of forfeited shares transferred to capital reserve account)

Amount forfeited for 500 shares = Rs. 3,000
Amount forfeited for 400 shares = \(\frac{3000}{500}\) \(\times\) 400
= 2,400
Less :
Loss on reissue = 400
Net gain transferred to capital reserve = 2,000

(i) When final call money is not paid.

In the books of United Industries Ltd., Journal Entries
Particulars		Debit Rs.	Credit Rs.
Equity Share capital A/c (250 x 10)	Dr	2,500
To Equity Share second and final call A/c (250 x 2)			500
To Forfeited shares A/c (250 x 8)			2,000
(250 Shares forfeited)

Since the premium amount is received by the company, premium should not be cancelled.
(ii) When allotment, first call money and second and final call money is not paid.

Particulars		Debit Rs.	Credit Rs.
Share capital A/c (250 x 10)	Dr	2,500
Share premium A/c (250 x 1)	Dr	250
To Share allotment A/c (250 x 4)			1,000
To Share first call A/c (250 x 2)			500
To Share Second and final call A/c (250 x 2)			500
To Shares Forfeited A/c (250 x 3)			750
(250 Shares Forfeited)

(iii) When allotment and first call money is not paid.

Particulars		Debit Rs.	Credit Rs.
Share capital A/c (250 x 8)	Dr	2,000
Share premium A/c (250 x 1)	Dr	250
To Share allotment A/c (250 x 4)			1,000
To Share first call A/c (250 x 2)			500
To Shares Forfeited A/c (250 x 3)			750
(250 Shares Forfeited)

In the books of Viswanath Furniture Ltd Journal Entries
Date	Particulars		Debit Rs.	Credit Rs.
(i)	Share capital A/c	Dr	2,500
	To Share forfeited A/c			2,500
	To share final call			500
	(250 shares forfeited failed to pay final call)
(ii)	Share capital A/c	Dr	2,500
	Share premium A/c	Dr	250
	To share allotment			1,000
	To share 1^stcall A/c			500
	To share final call A/c			500
	To share forfeiture A/c			750
	(250 Shares were forfeited failed to pay allotment, 1^st calls final call)
	Share capital	Dr	2,000
(iii)	Securities premium A/c	Dr	250
	To Share allotment A/c			1,000
	To share 1^stcall A/c			500
	To share forfeiture A/c	Dr		750
	(250 Shares were forfeited failed to pay allotment, 1^st calls)

Forfeited share account : (i) Rs. 2000; (ii) 750; (iii) 750

Computation of transfer to capital to capital reserve.
Amount forfeited for 1500 shares = Rs.12,000
Amount forfeited for 1200 shares = \(\frac{12,000}{1500}\) x 1200
= Rs. 9,600
Less: Loss on reissue = Rs.2,400
Net gain transferred to capital reserve = Rs. 7,200

In the books of kanchana Ltd Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c (70,000 x 1)	Dr	70,000
To Share application A/c			70,000
(Application money received on Rs.70,000 shares @ per share
Share application A/c	Dr	8,000
To Bank			8,000
(Excess share app. Money received)
Share application A/c	Dr	62,000
To Share allotment			12,000
To Share capital			50,000
(Share app. Money tr. to share capital)
Share allotment A/c	Dr	2,50,000
To Share capital A/c			2,50,000
(Allotment money due)
Bank A/c	Dr	2,38,000
To Share allotment A/c			2,38,000
(Application money received)
Share first call A/c (50,000 x 2)	Dr	1,00,000
To Share capital A/c			1,00,000
(First call money due)
Bank A/c	Dr	1,00,000
To Share first call A/c			1,00,000
(First call money received)
Share second and final call (50,000 x 2)	Dr	100,000
To Share capital A/c			1,00,000
(Allotment money received)
Bank A/c (50,000 - 1,500 x 2)	Dr	97,000
To Share second and final A/c			97,000
(Second and final call money received on)
Equity share capital A/c (1500 x 10)	Dr	15,000
To Share second and final A/c			3,000
To Forfeited shares A/c			12,000
(Shares forfeited for nonpayment of final call money)
Bank A/c (1,200 x 8)	Dr	9,600
Forfeited share A/c (1200 x 2)	Dr	2,400
To Share capital A/c			12,000
(1,200 forfeited shares reissued at 8 per share)
Forfeited shares A/c	Dr	7,200
To Capital reserve A/c			7,200
(gain on reissue credited to capital reserve A/c)

In the books of Simon Ltd Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c (50,000 x 1)	Dr	50,000
To Equity share application A/c			50,000
(Application money received)
Equity share application A/c	Dr	50,000
To Equity share capital A/c			50,000
(Application money transferred to share capital A/c)
Equity share allotment A/c	Dr	2,50,000
To Equity share capital A/c			2,50,000
(Allotment money due)
Bank A/c (50,000 x 5)	Dr	2.50,000
To Equity share allotment A/c			2,50,000
(Allotment money received)
Equity share first call A/c	Dr	1,00,000
To Equity share capital A/c (50,000 x 2)			1,00,000
(First call money due)
Bank A/c (50,000 x 2)	Dr	1,00,000
To Equity share first call A/c			1,00,000
(First call money received)
Equity share second and Final call A/c (50,000 x 2)	Dr	1,00,000
To Equity share capital A/c			1,00,000
(second and final call money received)
Bank A/c (48,000 x 2)	Dr	96,000
To Equity share second and final call A/c			96,000
(Second and final call money received)
Equity share capital A/c (2,000 x 10)	Dr	20,000
To Equity share second and final call A/c			4,000
To Forfeited share A/c (2000 shares forfeited)			16,000
Bank A/c (2,000 x 8)	Dr	16,000
Forfeited shares A/c	Dr	4,000
To Equity share capital A/c			20,000
(shares forfeited and reissues)
Forfeited shares A/c (16,000 - 4,000)	Dr	12,000
To Capital reserve A/c			12,000
(Gain on reissue of forfeited shares transferred to capital reserve account)			12,000

Particulars		Debit Rs.	Credit Rs.
Bank A/c (30000 x 2)	Dr	60,000
To Share application A/c			60,000
(Application money received)
Share application A/c	Dr	60,000
To Share capital A/c			60,000
(Application money transferred to share capital A/c)
Share allotment A/c (30,000 x 5)	Dr	1,50,000
To Share capital A/c			1,50,000
(Allotment money due)
Bank A/c (30,000 x 5)+ (500 x 3)	Dr	1,51,500
To Share allotment A/c			1,51,500
To Calls in advance A/c			1,500
(Allotment money received)
Share first call A/c 30,000 x 3	Dr	90,000
To share capital A/c			90,000
(First call money due)
Bank A/c (29,500 x 3)	Dr	88,500
Calls in advance A/c	Dr	1,500
To Share first call A/c			90,000
(First call money received and calls in advance adjusted)

In the books of Lalitha Ltd Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c	Dr	10,000
To Equity share application A/c			10,000
(Application money received) (20,000 + 70,000 + 10,000)
Equity share application A/c	Dr	30,000
To Equity share capital A/c			30,000
(Transfer of share application money of share capital)
Equity share application A/c (5,000 \(\times\) 2)	Dr	10,000
To Bank A/c			10,000
(Excess share application money refunded)
Equity share application A/c	Dr	30,000
To share allotment A/c			30,000
(Excess share application money utilised for allotment)
Equity share allotment A/c (30,000 \(\times\) 3)	Dr	90,000
To Equity share allotment A/c			90,000
(Allotment money received)
Bank A/c	Dr	60,000
To Equity share allotment A/c			60,000
(share first and final call money due)

Working Notes

Shares applied	shares allot	App. money received	App./ money	App allotted money	Refund
10,000	10,000	20,000	20,000	-	-
35,000	20,000	70,000	40,000	30,000	-
5,000	-	10,000		-	10,000

10.

In the books of Gaja Ltd Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c (50,000 \(\times\) 2)	Dr	1,00,000
To Share application A/c			1,00,000
(Application money received)
Share application A/c (40,000 \(\times\) 2)	Dr	80,000
To Share capital A/c			80,000
(Transfer of share application money of share capital)
Share application A/c (10,000 \(\times\) 3)	Dr	20,000
To Share allotment A/c			20,000
(Excess share application money utilised for allotment)
Share allotment A/c	Dr	2,00,000
To Share capital A/c			2,00,000
(share allotment money due)
Bank Alc (2,00,000 -20,000)	Dr	2,00,000
To Share allotment A/c			2,00,000
(Allotment money received)
Share first and final call Alc (40,000 \(\times\) 3)	Dr	1,20,000
To Share capital A/c			1,20,000
(share first and final call money due)
Bank A/c	Dr	1,20,000
			1,20,000
To Share first and final call A/c
(share first and final money received)

11.

In the books of Saranya Ltd Journal entries Date Particulars L.F Debit Rs. Credit Rs. Bank A/c (30,000 x 3) Dr 90,000 To Equity share application A/c 90,000 (Application money received) Equity share application A/c (20,000 x 3) Dr 60,000 To Equity share capital A/c 60,000 (Transfer of share application money to share
capital) Equity share application A/c (10000 x 3) Dr 30,000 To Bank A/c 30,000 (Excess share application money refunded) Equity share allotment A/c (20,000 x 4) Dr 80,000 To Equity share capital A/c 80,000 (share allotment money due) Bank A/c Dr 80,000 To Equity share allotment A/c 80,000 (Allotment money received) Equity share first and final call A/c Dr 60,000 To Equity share capital A/c 60,000 (share first and final call money due) Bank A/c Dr 60,000 To Equity share first and final call A/c 60,000 (share first and final money received)

12.

In the books of Sampath company Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c (24,000 x 3)	Dr	72,000
To Share application A/c			72,000
(Application money received)
Share application A/c	Dr	72,000
To Share capital A/c			72,000
(Transfer of application money to share capital A/c)
Share allotment A/c ( 24,000 x 4)	Dr	96,000
To Share capital A/c			96,000
(Allotment money due)
Bank A/c	Dr	96,000
To Share allotment A/c			96,000
(Allotment money received)
Share first and final call A/c	Dr	72,000
To Share capital A/c			7.2,000
(Call money due)
Bank A/c	Dr	72,000
To Share first and final call A/c			72,000
(Call money received)

13.

Particulars		Debit Rs.	Credit Rs.
Bank A/c (50,000 x 2)	Dr	1,00,000
To Share application A/c			1,00,000
(Application money received)
Share application A/c	Dr	1,00,000
To Share capital A/c			1,00,000
(Transfer of share application money to share capital)
Share allotment A/c	Dr	2,00,000
To Share capital A/c			2,00,000
(Share allotment money due)
Bank A/c	Dr	2,00,000
To Share allotment A/c			2,00,000
(Allotment money received)
Equity share first call A/c	Dr	1,00,000
To Share capital A/c			1,00,000
(Share first call money due)
Bank A/c	Dr	1,00,000
To Share first call A/c			1,00,000
(Share first call money received)
Share second and final call A/c	Dr	1,00,000
To Share capital A/c			1,00,000
(Share second and final call money due)
Bank A/c	Dr	1,00,000
To Share second and final call A/c			1,00,000
(Share second and final call money received)

14.

	Basis	Equity shares	Preference shares
1.	Meaning	Equity shares are the ordinary share of the company representing the part ownership of the shareholder in the company.	Preference shares are the shares that carry preferential rights on the matters of payment of dividend and repayment of capital.
2.	Payment of dividend	The dividend is paid after the payment of all liabilities	Priority in payment of dividend over equity shareholders.
3.	Rate of dividend	Fluctuating	Fixed
4.	Voting rights	Equity shares carry voting rights	Normally, preference shares do not carry voting rights
5.	Convertibility	Equity shares can never be converted	Preference shares can be converted into equity shares.

15.

In the books of Thangam Ltd. Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c (50,000 × 5)	Dr.	2,50,000
To Equity share application A/c			2,50,000
(Application money received)
Equity share application A/c	Dr.	2,50,000
To Equity share capital A/c			2,50,000
(Transfer of application money to share capital)
Equity share allotment A/c (50,000 × 5)	Dr.	2,50,000
To Equity share capital A/c (50,000 × 3)			1,50,000
To Securities premium A/c (50,000 × 2)			1,00,000
(Allotment money due)
Bank A/c (49,500 × 5)	Dr.	2,47,500
To Equity share allotment A/c			2,47,500
(Allotment money received except on 500 shares )
Equity share first and final call A/c (50,000 × 2)	Dr.	1,00,000
To Equity share capital A/c			1,00,000
(First and final call money due)
Bank A/c (49,500 × 2)	Dr.	99,000
To Equity share first and final call A/c			99,000
(First and final call money received)
Equity share capital A/c (500 × 10)	Dr.	5,000
Securities Premium A/c (500 × 2)		1,000	2,500
To Equity share allotment A/c (500 × 5)			1,000
To Equity share first and final call A/c (500 × 2)			2,500
To Forfeited shares A/c (500 × 5)
(500 shares forfeited for nonpayment of allotment and first and final call money)
Bank A/c (500 × 8)	Dr.	4,000
Forfeited shares A/c (500 × 2)	Dr.	1,000
To Equity share capital A/c (500 × 10)			5,000
(500 forfeited shares reissued)
Forfeited shares A/c (2,500-1,000)	Dr.	1,500
To Capital reserve A/c			1,500
(Gain on reissue of forfeited shares transferred to capital reserve)

16.

In the books of Divya Ltd. Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c (14,000 × 2)	Dr.	28,000
To Equity share application A/c			28,000
(Application money for 14,000 shares received)
Equity share application A/c (10,000 × 2)	Dr.	20,000
To Equity share capital A/c			20,000
(Application money transferred to share capital)
Equity share application A/c (4,000 × 2)	Dr.	8,000
To Equity share allotment A/c			8,000
(Excess application money adjusted towards allotment)
Equity share allotment A/c (10,000 × 5)	Dr.	50,000
To Equity share capital A/c (10,000 × 3)			30,000
To Securities premium A/c (10,000 × 2)			20,000
(Allotment money due)
Bank A/c (50,000 – 8,000)	Dr.	42,000
To Equity share allotment A/c			42,000
(Allotment money received)
Equity share first call A/c (10,000 × 3)	Dr.	30,000
To Equity share capital A/c			30,000
(First call amount due)
Bank A/c (9,700 × 3)	Dr.	29,100
To Equity share first call A/c			29,100
(First call money received for 9,700 shares)
Equity share second and final call A/c (10,000 × 2)	Dr.	20,000
To Equity share capital A/c			20,000
(Second and final call amount due)
Bank A/c (9,700 × 2)	Dr.	19,400
To Equity share second and final call A/c			19,400
(Second and final call money received for 9,700 shares)
Equity share capital A/c (300 × 10)	Dr.	3,000
To Equity share first call A/c (300 × 3)			900
To Equity share second and final call A/c (300 × 2)			600
To Shares forfeited A/c			1,500
(Forfeiture of 300 shares for non-payment first and second calls)
Bank A/c (200 × 9)	Dr.	1,800
Shares forfeited A/c	Dr.	200
To Equity share capital A/c			2,000
(Re-issue of 200 forfeited shares)
Shares forfeited A/c	Dr.	800
To Capital reserve A/c			800
(Profit on re-issue of 200 forfeited shares transferred to capital reserve account)

Working note:
Amount forfeited for 300 shares = Rs.1,500

Amount forfeited for 200 shares =	\(\frac{1,500}{300}\) x 200 =	1,000
Less: Loss on reissue		200
Net gain transferred to capital reserve		800

17.

(i) When final call money is not paid

In the books of Keerthiga Company Journal entries
Particulars		Debit Rs.	Credit Rs.
Equity share capital A/c (50 × 10)	Dr.	500
To Equity share second and final call A/c (50 × 3)			150
To Forfeited shares A/c (50 × 7)			350
(50 shares forfeited)

Note: Since the premium amount is received by the company, premium should not be cancelled
(ii) When allotment, first call money and second and final call money is not paid

Particulars		Debit Rs.	Credit Rs.
Share capital A/c (50 × 10)	Dr.	500
Share premium A/c (50 × 1)	Dr.	50
To Share allotment A/c (50 × 3)			150
To Share first call A/c (50 × 3)			150
To Share second and final call A/c (50 × 3)			150
To Shares forfeited A/c (50 × 2)			100
(50 shares forfeited)

(iii) When allotment and first call money is not paid

Particulars		Debit Rs.	Credit Rs.
Share capital A/c (50 × 7)	Dr.	350
Share premium A/c (50 × 1)	Dr.	50
To Share allotment A/c (50 × 3)			150
To Share first call A/c (50 × 3)			150
To Shares forfeited A/c (50 × 2)			100
(50 shares forfeited)

18.

Note: Number of shares rejected = 4,00,000 - 3,00,000 = 1,00,000

In the books os Shero Health Care Ltd Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c (4,00,000 × 3)	Dr.	12,00,000
To Equity share application A/c			12,00,000
Application money on 4,00,000 shares @ Rs.3 per share received)
Equity share application A/c (3,00,000 × 3)	Dr.	9,00,000
To Equity share capital A/c			9,00,000
(Share application transferred to share capital)
Equity share application A/c (1,00,000 × 3)		3,00,000
To Bank A/c			3,00,000
(Money refunded for rejected applications)
Equity share allotment A/c (3,00,000 × 5)	Dr.	15,00,000
To Equity share capital A/c (3,00,000 × 3)			9,00,000
To Securities premium A/c (3,00,000 × 2)			6,00,000
(Share allotment money Rs.5 per share including Rs.2 premium receivable for 3,00,000 shares)
Bank A/c (3,00,000 × 5)	Dr.	15,00,000
To Equity share allotment A/c			15,00,000
(Allotment money received)
Equity share first and final call A/c	Dr.	12,00,000
To Equity share capital A/c (3,00,000 × 4)			12,00,000
(Call money receivable)
Bank A/c	Dr.	12,00,000
To Equity share first and final call A/c			12,00,000
(Call money received)

19.

In the books of X company Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c (30,000 × 2)	Dr.	60,000
To Equity share application A/c			60,000
(Application money received on 30,000 shares @ Rs.2 per share)
Equity share application A/c (10,000 × 2)	Dr.	20,000
To Equity share capital A/c			20,000
(Share application transferred to share capital)
Equity share application A/c	Dr.	40,000
To Bank A/c (10,000 × 2)			20,000
To Equity share allotment A/c (10,000 × 2)
(Application money refunded for rejected applications and excess application money adjusted towards allotment)
Equity share Allotment A/c (10,000 × 4)	Dr.	40,000
To Equity share capital A/c			40,000
(Allotment money due)
Bank A/c (40,000-20,000)	Dr.	20,000
To Equity share allotment A/c			20,000
(Allotment money received)
Equity share first call A/c (10,000 × 2)	Dr.	20,000
To Equity share capital A/c			20,000
(First call money due)
Bank A/c	Dr.	20,000
To Equity share first call A/c			20,000
(First call money received)
Equity share second and final call A/c (10,000 × 2)	Dr.	20,000
To Equity share capital A/c			20,000
(Share second and final call due)
Bank A/c (9,400 × 2)	Dr.	18,800
To Equity share second and final call A/c			18,800
(Second and final call money received on 9,400 shares)
Equity share capital A/c (600 × 10)	Dr.	6,000
To Equity share second and final call A/c (600 × 2)			1,200
To Forfeited shares A/c (600 × 8)			4,800
(Shares forfeited for nonpayment of final call money)
Bank A/c (400 × 7)	Dr.	2,800
Forfeited shares A/c (400 × 3)	Dr.	1,200
To Equity share capital A/c			4,000
(400 forfeited shares reissued at Rs.7 per share)
Forfeited shares A/c	Dr.	2,000
To Capital reserve A/c			2,000
(Gain on reissue credited to capital reserve A/c)

Working note:
Amount forfeited for 600 shares = Rs. 4,800

Amount forfeited for 400 shares	= \(\frac{4,800}{600} \times\)400	Rs. 3,200
Less: Loss on reissue		1,200
Net gain transferred to capital reserve		2,000

20.

In the books of Aruna Mills Ltd. Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c (10,000 × 3)	Dr.	30,000
To Equity share application A/c			30,000
(Application money received)
Equity share application A/c	Dr.	30,000
To Equity share capital A/c			30,000
(Application money transferred to share capital A/c)
Equity share allotment A/c (10,000 × 3)	Dr.	30,000
To Equity share capital A/c			30,000
(Allotment money due)
Bank A/c (10,000 × 3)	Dr.	30,000
To Equity share allotment A/c			30,000
(Allotment money received)
Equity share first call A/c (10,000 × 2)	Dr.	20,000
To Equity share capital A/c			20,000
(First call money due)
Bank A/c (10,000 × 2)	Dr.	20,000
To Equity share first call A/c			20,000
(First call money received)
Equity share second and final call A/c (10,000 × 2)	Dr	20,000
To Equity share capital A/c			20,000
(Second and final call money due)
Bank A/c (9,900 × 2)	Dr.	19,800
To Equity share second and final call A/c			19,800
(Second and final call money received)
Equity share capital A/c (100 × 10)	Dr.	1,000
To Equity share second and final call A/c			200
To Forfeited shares A/c			800
(100 shares forfeited)
Bank A/c (100 × 7)	Dr.	700
Forfeited shares A/c		300
To Equity share capital A/c (100 × 10)			1,000
(Shares forfeited reissued)
Forfeited shares A/c (800-300)	Dr.	500
To Capital reserve A/c			500
(Gain on reissue of forfeited shares transferred to capital reserve account)

21.

In the books of Khan Ltd. Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c (1,40,000 × 3)	Dr.	4,20,000
To Equity share application A/c			4,20,000
(Application money received)
Equity share application A/c (1,00,000 × 3)	Dr.	3,00,000
To Equity share capital A/c			3,00,000
(Transfer of share application money to share capital)
Equity share application A/c (5,000 × 3)	Dr.	15,000
To Bank A/c			15,000
(Excess application money refunded)
Equity share application A/c (35,000 × 3)	Dr.	1,05,000
To Share allotment A/c			1,05,000
(Excess share application money utilised for allotment)
Equity share allotment A/c (1,00,000 × 4)	Dr.	4,00,000
To Equity share capital A/c			4,00,000
(Share allotment money due)
Bank A/c	Dr.	2,95,000
To Equity share allotment A/c			2,95,000
(Allotment money received)

22.

In the books of Khan Ltd. Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c (65,000 × 4)	Dr.	2,60,000
To Equity share application A/c			2,60,000
(Application money received)
Equity share application A/c (50,000 × 4)	Dr.	2,00,000
To Equity share capital A/c			2,00,000
(Transfer of share application money to share capital)
Equity share application A/c (15,000 × 4)	Dr.	60,000
To Equity share allotment A/c			60,000
(Excess share application money utilised for allotment)
Equity share allotment A/c	Dr.	2,00,000
To Equity share capital A/c			2,00,000
(Share allotment money due)
Bank A/c (2,00,000 – 60,000)	Dr.	1,40,000
To Equity share allotment A/c			1,40,000
(Allotment money received)
Equity share first and final call A/c (50,000 × 2)	Dr.	1,00,000
To Equity share capital A/c			1,00,000
(Share first and final call money due)
Bank A/c	Dr.	1,00,000
To Equity share first and final call A/c			1,00,000
(Share first and final call money received)

23.

In the books of Bharath Ltd. Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c (1,20,000 × 5)	Dr.	6,00,000
To Equity share application A/c			6,00,000
(Application money received)
Equity share application A/c (1,00,000 × 5)	Dr.	5,00,000
To Equity share capital A/c			5,00,000
(Transfer of share application money to share capital)
Equity share application A/c (20,000 × 5)	Dr.	1,00,000
To Bank A/c			1,00,000
(Excess share application money refunded)
Equity share allotment A/c	Dr.	3,00,000
To Equity share capital A/c			3,00,000
(Share allotment money due)
Bank A/c	Dr.	3,00,000
To Equity share allotment A/c			3,00,000
(Allotment money received)
Equity share first and final call A/c	Dr.	2,00,000
To Equity share capital A/c			2,00,000
(Share first and final call money due)
Bank A/c	Dr.	2,00,000
To Equity share first and final call A/c			2,00,000
(Share first and final call money received)

24.

In the books of Joy Company Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c (9,000 × 5)	Dr.	45,000
To Equity share application A/c			45,000
(Application money received)
Equity share application A/c	Dr.	45,000
To Equity share capital A/c			45,000
(Transfer of application money to share capital A/c)
Equity share allotment A/c	Dr.	27,000
To Equity share capital A/c			27,000
(Allotment money due)
Bank A/c	Dr.	27,000
To Equity share allotment A/c			27,000
(Allotment money received)
Equity share first and final call A/c	Dr.	18,000
To Equity share capital A/c			18,000
(Call money due)
Bank A/c	Dr.	18,000
To Equity share first and final call A/c			18,000
(Call money received)

25.

In the books of Thai Ltd. Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c	Dr.	5,00,000
To Equity share application A/c			5,00,000
(Application money received)
Equity share application A/c	Dr.	5,00,000
To Equity share capital A/c			5,00,000
(Transfer of share application money to share capital)
Equity share allotment A/c	Dr.	2,00,000
To Equity share capital A/c			2,00,000
(Share allotment money due)
Bank A/c	Dr.	2,00,000
To Equity share allotment A/c			2,00,000
(Allotment money received)
Equity share first call A/c	Dr.	2,00,000
To Equity share capital A/c			2,00,000
(Share first call money due)
Bank A/c	Dr.	2,00,000
To Equity share first call A/c			2,00,000
(Share first call money received)
Equity share second and final call A/c	Dr.	1,00,000
To Equity share capital A/c			1,00,000
(Share second and final call money due)
Bank A/c	Dr.	1,00,000
To Equity share second and final call A/c			1,00,000
(Share second and final call money received)