Page 180 - MA-12

Joint Stock Company—Issue of Shares 6.39

6. Jindal Steel Ltd. issued 50,000 Equity Shares of ` 10 each at ` 12 (i.e., at a premium of ` 2 per share)
payable as follows:
` 3 on application; ` 4 on allotment (including premium); ` 2 on first call; and ` 3 on second and final call.
The company received applications for 65,000 Equity Shares. Applications for 40,000 Equity Shares
were accepted in full; 10,000 Equity Shares were allotted to applicants of 20,000 Equity Shares and
applications for 5,000 Equity Shares were rejected. All the moneys were duly received except the first
call on 1,000 Equity Shares and final call on 1,500 Equity Shares.
Pass entries in the Cash Book and Journal of the company. Also, draw Balance Sheet.

GUIDE TO ANSWERS

1. Amount credited to Calls-in-Advance on allotment of shares—` 6,50,000;
Out of the above, amount applied or adjusted towards allotment money—` 5,00,000; and
Amount adjusted towards shares first and final call—` 1,50,000.
2. Shares Issued for Cash—75,000;
Shares issued for consideration other than cash—2,700; and
Securities Premium Reserve—` 1,50,000.
3. (i) Dr. Equity Shares Second and Final Call A/c and Cr. Equity Share Capital A/c by ` 1,00,000.
(ii) Dr. Bank A/c—` 99,800 and Calls-in-Arrears A/c—` 200;
Cr. Equity Shares Second and Final Call A/c—` 1,00,000.
4. Total of Balance Sheet—` 4,92,000.
5. Capital Reserve—` 5,000.
6. Share Capital—` 4,93,500; Reserves and Surplus—` 1,00,000; Total of Balance Sheet—` 5,93,500.