Page 341 - MA-12

M.32 Management Accounting (Section B)—ISC XII

Equity Share Capital A/c (400 × ` 100) ...Dr. 40,000
To Forfeited Shares A/c (660 × ` 50) 33,000
To Calls-in-Arrears A/c 7,000
(Being 400 shares of Vidur forfeited)
Bank A/c (400 × ` 110) ...Dr. 44,000
To Equity Share Capital A/c (400 × ` 100) 40,000
To Securities Premium Reserve A/c (400 × ` 10) 4,000
(Being 400 shares reissued for ` 110 per share as fully paid-up)
Forfeited Shares A/c ...Dr. 33,000
To Capital Reserve A/c 33,000
(Being the gain on reissue transferred to Capital Reserve)
BALANCE SHEET OF BAYSON LTD.
Particulars Note No. `
I. EQUITY AND LIABILITIES
Shareholders’ Funds
(a) Share Capital 1 54,00,000
(b) Reserves and Surplus 2 37,000
Total 54,37,000
II. ASSETS
Current Assets
Cash and Cash Equivalents 3 54,37,000
Total 54,37,000
Notes to Accounts
Particulars `
1. Share Capital
Authorised Capital
... Equity Shares of ` 100 each ...
Issued Capital
54,000 Equity Shares of ` 100 each 54,00,000
Subscribed Capital
Subscribed and Fully paid-up
54,000 Equity Shares of ` 100 each 54,00,000
2. Reserves and Surplus
Capital Reserve 33,000
Securities Premium Reserve 4,000
37,000
3. Cash and Cash Equivalents
Cash at Bank 54,37,000

Working Notes:
1. Adjustment of Excess of Application Money:
Number of Applied Shares Number of Allotted Shares
Total Shares 80,000 54,000
Full Allotment 14,000 14,000
Pro rata Allotment 66,000 40,000
Pro rata Allotment: Excess Application Money = (66,000 – 40,000) × ` 50 = ` 13,00,000;
Adjusted on Allotment = 40,000 × ` 10 = ` 4,00,000;
Adjusted on Call = ` 13,00,000 – ` 4,00,000 = ` 9,00,000.