Page 18 - DEBK12

8.8 Double Entry Book Keeping—CBSE XII
Solution: In the Books of H Limited
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 60,000
To Shares Application A/c 60,000
(Application money received on 30,000 shares @ ` 2 per share)
Shares Application A/c (30,000 × ` 2) ...Dr. 60,000
To Share Capital A/c (20,000 × ` 2) 40,000
To Shares Allotment A/c (4,000 × ` 2) 8,000
To Bank A/c (6,000 × ` 2) 12,000
(Application money adjusted and surplus refunded)

Shares Allotment A/c (20,000 × ` 5) ...Dr. 1,00,000
To Share Capital A/c (20,000 × ` 3) 60,000
To Securities Premium Reserve A/c (20,000 × ` 2) 40,000
(Amount due on allotment @ ` 5 per share on 20,000 allotted shares)
Bank A/c ...Dr. 90,160
To Shares Allotment A/c (WN 1 and 2) 90,160
(Receipt of allotment money less Ramesh’s share)

Shares First Call A/c ...Dr. 60,000
To Share Capital A/c 60,000
(First call due @ ` 3 on 20,000 shares)

Bank A/c ...Dr. 57,000
To Shares First Call A/c 57,000
(Receipt of first call money on 20,000 shares less 1,000 shares of Ramesh
and Mohan)
Share Capital A/c (400 × ` 8) ...Dr. 3,200
Securities Premium Reserve A/c (400 × ` 2) ...Dr. 800
To Shares Allotment A/c (WN 1) 1,840
To Shares First Call A/c 1,200
To Forfeited Shares A/c (WN 3) 960
(Forfeiture of 400 shares held by Ramesh for non-payment of allotment
and first call money)

Shares Second and Final Call A/c ...Dr. 39,200
To Share Capital A/c 39,200
(Amount due on second and final call @ ` 2 per share on 19,600 shares
(i.e., 20,000 shares – 400 forfeited shares))
Bank A/c ...Dr. 38,000
To Shares Second and Final Call A/c 38,000
(Receipt of second and final call money on 19,600 shares, less
Mohan’s 600 shares)