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M.484 An Aid to Accountancy—CBSE XII

Calls-in Arrears A/c ...Dr. 2,100
To Shares First and Final Call A/c 2,100
(Being the amount not received on first and final call transferred
to Calls-in-Arrears Account)
Share Capital A/c ...Dr. 7,000
To Calls-in-Arrears A/c 4,200
To Forfeited Shares A/c 2,800
(Being 700 shares of Mr. Sharma forfeited due to non-payment of
allotment and first and final call)
Forfeited Shares A/c ...Dr. 700
To Share Capital A/c 700
(Being 700 forfeited shares reissued @ ` 9 per share)
Forfeited Shares A/c ...Dr. 2,100
To Capital Reserve A/c 2,100
(Being the balance in Forfeited Shares A/c transferred to Capital
Reserve upon reissue)

Dr. CASH BOOK (BANK COLUMN ONLY) Cr.
Particulars ` Particulars `
To Shares Application A/c (75,000 × ` 5) 3,75,000 By Shares Application A/c (15,000 × ` 5) 75,000
To Shares Allotment A/c (WN 1 and 2) 1,47,900 By Balance c/d 6,02,100
To Shares First and Final Call A/c 1,47,900
(50,000 × ` 3) – (700 × ` 3)
To Share Capital A/c (700 × ` 9) 6,300
6,77,100 6,77,100
Working Notes:
1. Calculation of allotment money due but not received from Mr. Sharma:
60,000
(i) Number of shares applied by Mr. Sharma = × 700 = 840 Shares.
50,000
(ii) Application money received (840 × ` 5) ` 4,200
Less: Application money required (700 × ` 5) ` 3,500
Excess application money to be adjusted on allotment ` 700

(iii) Money due from Mr. Sharma on allotment (700 × ` 4) ` 2,800
Less: Excess application money to be adjusted as per (ii) ` 700
Allotment money due but not received ` 2,100
2. Calculation of allotment money received later on:
Total allotment money due ` 2,00,000
(i) Less: Excess Application money adjusted at application stage ` 50,000
(ii) Allotment money due but not received from Mr. Sharma (WN 1) ` 2,100 ` 52,100
Allotment money received ` 1,47,900
PART B
18. (i) Cash Purchases.
(ii) Cash paid to Trade Payables.
19. ` 10,00,000 (Used).
Note: L & T Finance Ltd. is a financial company. Hence, Loan (` 5,00,000), purchase of
shares (` 8,00,000), profit on sale of shares (` 25,000) and dividend (` 5,000) are its
Operating Activities.