Page 172 - ISCDEBK-12

7.8 Double Entry Book Keeping (Section A)—ISC XII

Solution: JOURNAL

Date Particulars L.F. Dr. (`) Cr. (`)
Incorporation Cost (or Goodwill) A/c ...Dr. 1,00,000
To Promoters’ A/c 1,00,000
(Being the amount due to promoters)
Promoters’ A/c ...Dr. 1,00,000
To Equity Share Capital A/c 1,00,000
(Being the issue of 10,000 shares of ` 10 each fully paid to the
promoters for their services)
Land and Building A/c ...Dr. 4,00,000
To Y Co. Ltd. 4,00,000
(Being the land and building purchased from Y Co. Ltd.)
Y Co. Ltd. ...Dr. 4,00,000
To Equity Share Capital A/c 4,00,000
(Being the issue of 40,000 shares of ` 10 each to Y Co. Ltd. against
the purchase of land and building)
Bank A/c ...Dr. 5,00,000
To Equity Shares Application and Allotment A/c 5,00,000
(Being the Application Money received for 50,000 shares)
Equity Shares Application and Allotment A/c ...Dr. 5,00,000
To Equity Share Capital A/c 5,00,000
(Being the allotment of 50,000 shares of ` 10 each)

AN EXTRACT OF BALANCE SHEET OF XYZ LTD.
as at 31st March, 2018
Particulars Note No. Current Year Previous Year
(`) (`)
I. EQUITY AND LIABILITIES
Shareholders’ Funds
Share Capital 1 10,00,000
Note to Accounts
1. Share Capital `
Authorised Capital
1,00,000 Equity Shares of ` 10 each 10,00,000
Issued Capital
1,00,000 Equity Shares of ` 10 each 10,00,000
(Of the above, 50,000 Equity Shares have been allotted for consideration other than cash)
Subscribed Capital
Subscribed and fully paid-up
1,00,000 Equity Shares of ` 10 each fully paid-up 10,00,000
(Of the above, 50,000 Equity Shares have been allotted for consideration other than cash)