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M.324 An Aid to Accountancy—CBSE XII

Bank A/c ...Dr. 72,800
Calls-in-Arrears A/c (1,600 × ` 2) ...Dr. 3,200
Calls-in-Advance A/c (2,000 × ` 2) ...Dr. 4,000
To Shares First Call A/c 80,000
(Being the first call money received except on 1,600 shares and
advance adjusted)
Shares Second and Final Call A/c ...Dr. 1,60,000
To Share Capital A/c 1,60,000
(Being the second and final call due)
Bank A/c ...Dr. 1,45,600
Calls-in-Arrears A/c (1,600 × ` 4) ...Dr. 6,400
Calls-in-Advance A/c (2,000 × ` 4) ...Dr. 8,000
To Shares Second and Final Call A/c 1,60,000
(Being the call money received)
Working Notes:
1. Calculation of Allotment money not received from R:
48,000
=
Number of Shares Applied by R = ¥1,600 1,920 shares .
40,000
Excess Application Money = 320 × ` 2 = ` 640.
`
Allotment Money Due on 1,600 Shares 3,200
Less: Excess Application Money to be Adjusted 640
Amount due on Allotment but not Paid by R 2,560
2. Calculation of Money Received on Allotment:
Total Allotment Money Due 80,000
Less: Already Adjusted 16,000
64,000
Less: Not Paid by R 2,560
61,440
Add: Calls-in-Advance Received from S 12,000
Amount Received on Allotment 73,440
(b) JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Before Redemption of Debentures
Surplus, i.e., Balance in Statement of Profit and Loss A/c ...Dr. 3,00,000
To Debentures Redemption Reserve A/c (25% × ` 12,00,000) 3,00,000
(Being the transfer of profit to Debentures Redemption Reserve)
Debentures Redemption Investment A/c (15% of ` 12,00,000) ...Dr. 1,80,000
To Bank A/c 1,80,000
(Being the investment made @ 15% of the face value of the debentures)
On Redemption of Debentures
Bank A/c ...Dr. 1,80,000
To Debentures Redemption Investment A/c 1,80,000
(Being the investment encashed)
10% Debentures A/c ...Dr. 12,00,000
To Debentureholders’ A/c 12,00,000
(Being the amount due to debentureholders on redemption)
Debentureholders’ A/c ...Dr. 12,00,000
To Bank A/c 12,00,000
(Being the amount due to debentureholders paid)
Debentures Redemption Reserve A/c ...Dr. 3,00,000
To General Reserve A/c 3,00,000
(Being the transfer of Debentures Redemption Reserve to
General Reserve on the redemption of all the debentures)