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M.302 An Aid to Accountancy—CBSE XII

Bank A/c ...Dr. 1,12,20,000
Calls-in-Arrears A/c (2,000 × ` 60) ...Dr. 1,20,000
To Equity Shares First and Final Call A/c 1,13,40,000
(Being the first and final call received except on 2,000 shares)
Equity Share Capital A/c ...Dr. 2,00,000
To Forfeited Shares A/c 80,000
To Calls-in-Arrears A/c 1,20,000
(Being 2,000 shares forfeited for non-payment of first and final call)
Bank A/c ...Dr. 1,35,000
Forfeited Shares A/c ...Dr. 15,000
To Equity Share Capital A/c 1,50,000
(Being 1,500 forfeited shares reissued @ ` 90 per share as fully paid)
Forfeited Shares A/c ...Dr. 35,000
To Capital Reserve A/c 35,000
(Being the gain on reissue of 1,500 forfeited shares transferred to
Capital Reserve)
Working Note:
Amount transferred to Capital Reserve: `
Ê 500 ˆ
Amount forfeited on 500 shares of Ankit Á ¥ 20,000` ˜ 10,000
Ë1,000 ¯
Ê 1,000 ˆ
Amount forfeited on 1,000 shares of Ankur Á Ë 2,000 ¥ 80,000` ˜ ¯ 40,000
50,000
Less: Amount of Discount on 1,500 shares (1,500 × ` 10) 15,000
Amount transferred to Capital Reserve 35,000

PART B
18. Transactions which represent movements between items of Cash or Cash Equivalents
are not considered as Cash Flows (e.g., Cash deposit into Bank) because these
components are part of the cash management of an enterprise rather than part of the
Operating/Investing/Financing Activities.
19. Cash Flow Statement is prepared to determine Cash Flow from Operating, Investing
and Financing Activities and net change in Cash and Cash Equivalents between the
dates of two consecutive Balance Sheets.
20. (a) Only the monetary information is considered in financial analysis while
non-monetary aspects (qualitative aspect) like quality of management, staff, public
relation, etc., are ignored.
(b)

Case Current Assets or Non-current Assets Reason
Case 1 Non-current Assets Expected Realisation Period is more than the Operating Cycle
Period and 12 months period.
Case 2 Current Assets Expected Realisation Period is less than the Operating Cycle
Period although it is more than 12 months period.
Case 3 Non-current Assets Expected Realisation Period is more than the Operating Cycle
Period and 12 months period.