Give Journal entries to record the following transactions of for

Subject

Accountancy

Class

CBSE Class 12

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 Multiple Choice QuestionsLong Answer Type

21.

On 1st April, 2008'a company made an issue of Rs. 2,00,000, 6% Debentures of Rs. 100 each, repayable at a premium of 10%. The terms of issue provided for the redemption of 400 debentures every year starting from the end of 31-3-2010 either by purchase from the open market or by draw of lots at the company's option.
On 31-3-2010, the company purchased for cancellation 300 Debentures at 95% and 100 Debentures at 90%.
Pass the necessary Journal entries for the issue and redemption of debentures assuming that the company had already created the Debenture Redemption Reserve A/c by the required amount. 

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22.

X Ltd. issued 40,000 Equity Shares of Rs. 10 each at a premium of Rs. 2.50 per share. The amount was payable as follows:
On application – Rs. 2 per share
On allotment – Rs. 4.50 per share (including premium)
and on call – Rs. 6 per share
Owing to heavy subscription the allotment was made on pro-rata basis as follows:
(a) Applicants for 20,000 shares were allotted 10,000 shares.
(b) Applicants for 56,000 shares were allotted 14,000 shares.
(c) Applicants for 48,000 shares were allotted 16,000 shares.
It was decided that excess amount received on applications would be utilized on allotment and the surplus would be refunded.
Ram, to whom 1,000 shares were allotted, who belong to category (a), failed to pay allotment money. His shares were forfeited after the call.
Pass the necessary Journal entries in the books of X Ltd. for the above transactions. 

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23.

Give Journal entries to record the following transactions of forfeiture and re-issue of shares and open share forfeited account in the books of the respective companies.
(i) C Ltd. forfeited 1000 shares of Rs. 100 each issued at a discount of 8% on these shares the first call of Rs. 30 per share was not received and the final call of Rs. 20 per share was yet to be called. These shares were subsequently re-issued at Rs. 70 per share Rs. 80 paid up.
(ii) L Ltd. forfeited 470 Equity Shares of Rs. 10 each issued at a premium of Rs. 5 per share for non-payment of allotment money of Rs. 8 per share (including share premium Rs. 5 per share) and the first and final call of Rs. 5 per share. Out of these 60 Equity Shares were subsequently re-issued at Rs. 14 per share.


Date

Particulars

LF

Debit (Rs)

Credit (Rs)

 

 

Share Capital A/c (1000 x 80)       Dr

 

                  To Forfeited Share A/c (1000 x 42)

                 

To Discount on Issue of Share A/c

(1000 x 8)

 

                   To Share First Call A/c (1000 x 30 )  / Calls in Arrears A/c

 

(Being 1000 Shares Forfeited due to non payment of first call)

 

 

 

 

80000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 70000

 

8000

 

2000

 

 

 

 

 

 40000

 

 

 

 

42000

 

 

8000

 

 

30000

 

 

 

 

 

 

 

 

 

 

 

 
80000

 

 

 

 

 

 
 40000

 

 

Bank A/c      1000 x 70)             Dr

 

Discount on Issue of Share A/c    Dr

 

Forfeited Share A/c                   Dr

 

            To Share Capital A/c (1000 x 80)

 

(Being 1000 shares re – issued as Rs. 80 called up at Rs. 70 per share)

 

 

Forfeited Share A/c                    Dr

 

To Capital Reserve A/c

 

(Being the profit on re- issued shares transferred to Capital Reserve A/c)


                                                             

Forfeited share Account


Particulars

Amount

Particulars

Amount

 

To share capital a/c

 

To capital reserve

 

2000

 

40000

 

 

By share capital a/c

 

42000

 

 

 

 

42000

 

42000

 


(ii)

Date

Particulars

Lf

Debit (Rs)

Credit (Rs)

 

 

Equity Share Capital A/c

 (470 x 10)                               Dr

 

Securities Premium A/c (470 x 5) Dr

 

To Forfeited Share A/c

 (470 x 2)

 

To Equity Share Allotment A/c

 (470 x 8)

 

To Equity Share First & Final Call A/c (470 x 5)

                      

 

 OR

 

Equity Share Capital A/c

 (470 x 10)                               Dr

 

 Securities Premium A/c

(470 x 5)                                 Dr

 

To Forfeited Share A/c

(470 x 2)

 

To Calls in Arrears A/c

 

 (Being 470 shares forfeited)

 

 

 

 

4700

 

2350

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4700

 

 

 

2350

 

 

 

 

 

 

 

840

 

 

 

 

 

 

 

 

 

 

120

 

 

 

 

 

 

940

 

 

470

 

 

 

2350

 

 

 

 

 

 

 

 

 

 

 

940

 

 

6110

 

 

 

 

600

 

240

 

 

 

 

 

 

 

 

120

 

Bank A/c (60 x 14 ) Dr

 

  To Equity Share Capital A/c

 (60 x 10)

 To Security Premium A/c

(60 x 4)

 

(Being 60 shares re issued @ of Rs. 14 per  share)

 

 

Forfeited Shares A/c Dr

 

                To Capital Reserve A/c

 

(Being the profit on re-issued shares transferred to capital reserve A/c)

Forfeited shares account

Particulars

Rs

Particulars

Rs

To capital Reserve a/c

 

To balance c/d

120

 

820

By share capital a/c

940

 

940

 

940

 

Note: Amount of Forfeited shares transferred to capital reserve A/c = 940 x 60 / 470  =  Rs. 120

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24.

From the following Balance Sheets of Vijaya Ltd. as on 31-3-2009 and 31-3-2010 prepare a Cash Flow Statement.

Liabilities

31-3-2009

(Rs)

31-3-2010

(Rs)

Assets

31-3-2009

(Rs)

31-3-2010

(Rs)

Share Capital

General Reserve

Profit & loss account

Trade Creditors

 

45,000

15,000

10,000

8,700

65,000

27,500

15,000

11,000

Fixed Assets

Stock

Debtors

Cash

Preliminary expense

46,700

11,000

18,000

2,000

1,000

83,000

13,000

19,500

2,500

500

 

 

78,700

1,18,500

 

78,700

1,18,500

 

Additional Information:
(i) Depreciation on Fixed Assets for the year 2009-2010 was Rs. 14,700.
(ii) An interim dividend Rs. 7,000 has been paid to the shareholders during the year.


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