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M.144 An Aid to Accountancy—CBSE XII

(iii) Equity Shares Allotment A/c ...Dr. 10,00,000
To Equity Share Capital A/c 10,00,000
(Being the allotment money due)

(iv) Bank A/c ...Dr. 5,94,000
Calls-in-Arrears A/c (WN) ...Dr. 6,000
To Equity Shares Allotment A/c 6,00,000
(Being the allotment money received)
(v) Equity Share Capital A/c ...Dr. 20,000
To Calls-in-Arrears A/c 6,000
To Forfeited Shares A/c 14,000
(Being 2,000 shares forfeited)
(vi) Bank A/c ...Dr. 14,000
Forfeited Shares A/c ...Dr. 6,000
To Equity Share Capital A/c 20,000
(Being the reissue of forfeited shares)
(vii) Forfeited Shares A/c ...Dr. 8,000
To Capital Reserve A/c 8,000
(Being the profit on reissue transferred)
Working Note:
Calculation of Money Not Received from Kanwar:
2,00,000
=
Number of Shares Allotted to Kanwar = ¥2,500 2,000 shares
2,50,000
Excess Application Money received = (2,500 – 2,000) × ` 8 = ` 4,000
`
Allotment Money due from Kanwar = 10,000
Less: Excess Money Adjusted = 4,000
Not paid by Kanwar 6,000

PART B

18. Investing Activities are the acquisition and disposal of long-term assets and other
investments not included in cash equivalents.
19. (a) Cost of Machinery, i.e., ` 5,80,000 should be shown as cash outflow under
Investing Activities.
(b) Interest paid, i.e., ` 20,000 should be classified as cash outflow under
Financing Activities.
20.

S. No. Items Major Headings Sub-headings
(i) Long-term Borrowings Non-current Liabilities Long-term Borrowings
(ii) Trade Payables Current Liabilities Trade Payables
(iii) Provision for Tax Current Liabilities Short-term Provisions
(iv) Money Received Against Share Warrants Shareholders’ Funds ...
(v) Patents Non-current Assets Fixed Assets—Intangible Assets
(vi) Accrued Incomes Current Assets Other Current Assets
(vii) Cheques/Draft in Hand Current Assets Cash and Cash Equivalents
(viii) Calls-in-Advance Current Liabilities Other Current Liabilities