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M.374 An Aid to Accountancy—CBSE XII

Working Notes:
1. Adjustment of Capital:
Sonu’s Capital for 1/4th Share = ` 56,000
Total capital of the New Firm = ` 2,24,000 (i.e., ` 56,000 × 4/1), which will be contributed by Annu, Mannu
and Sonu in their new profit-sharing ratio, i.e., 2 : 1 : 1. Thus,
Annu’s Capital in New Firm = 2/4 of ` 2,24,000 = ` 1,12,000;
Mannu’s Capital in New Firm = 1/4 of ` 2,24,000 = ` 56,000.
2. Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 77,000 By Annu’s Capital A/c 41,080
To Sonu’s Capital A/c 56,000 By Mannu’s Capital A/c 85,720
To Premium for Goodwill A/c 21,000 By Balance c/d 27,200
1,54,000 1,54,000
17. JOURNAL OF XYZ LTD.

Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 4,95,000
To Equity Shares Application A/c 4,95,000
(Being the shares application money received for 1,10,000 shares)
Equity Shares Application A/c ...Dr. 4,95,000
To Equity Share Capital A/c 1,20,000
To Securities Premium Reserve A/c 1,50,000
To Equity Shares Allotment A/c 1,86,500
To Bank A/c 38,500
(Being the application money adjusted)
Equity Shares Allotment A/c ...Dr. 2,40,000
To Equity Share Capital A/c 2,40,000
(Being the allotment money due on 60,000 shares @ ` 4 each)
Bank A/c ...Dr. 53,440
To Equity Shares Allotment A/c 53,440
(Being the allotment money received except on 60 shares)
Equity Shares First and Final Call A/c ...Dr. 2,40,000
To Equity Share Capital A/c 2,40,000
(Being the first and final call due on 60,000 shares @ ` 4 each)
Bank A/c ...Dr. 2,36,560
To Equity Shares First and Final Call A/c 2,36,560
(Being the first and final call received except on 860 shares)
Equity Share Capital A/c ...Dr. 8,600
To Forfeited Shares A/c (` 300 + ` 4,800) 5,100
To Equity Shares Allotment A/c 60
To Equity Shares First and Final Call A/c 3,440
(Being 60 shares forfeited for non-payment of allotment and call and
800 shares for non-payment of call)
Bank A/c (` 8 × 60 + ` 6 × 800) ...Dr. 5,280
Forfeited Shares A/c (` 2 × 60 + ` 4 × 800) ...Dr. 3,320
To Equity Share Capital A/c 8,600
(Being 860 forfeited shares reissued)
Forfeited Shares A/c ...Dr. 1,780
To Capital Reserve A/c 1,780
(Being the gain on reissue transferred to Capital Reserve)