CBSE 2025, Set 1

Question

(a) Altima Ltd. invited applications for issuing 2,00,000 equity shares of ₹ 10 each at a premium of ₹ 4 per share. The amount was payable as follows:
On application and allotment - ₹ 7 per share (including premium ₹ 1)
On first and final call - Balance

Applications were received for 2,40,000 shares. Applications for 30,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Excess money received on application and allotment was returned. Manvi, who was allotted 4,000 shares failed to pay the first and final call money. Her shares were forfeited. All the forfeited shares were reissued at ₹ 4 per share fully paid up.

Pass necessary journal entries in the books of Altima Ltd.

Edvaya · Accepted Answer

The correct answer is Subjective. **Books of Altima Ltd. - Journal** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | | Bank A/c ...Dr.     To Equity Share Application and Allotment A/c (App money received on 2,40,000 shares @7 per share) | | 16,80,000 | 16,80,000 | | | Equity Share Application and Allotment A/c ...Dr.     To Equity Share Capital A/c (2,00,000 × 6)     To Securities Premium A/c (2,00,000 × 1)     To Bank A/c (40,000 excess apps returned × 7) (Transfer of app money and excess returned) | | 16,80,000 | 12,00,000 2,00,000 2,80,000 | | | Equity Share First and Final call A/c ...Dr.     To Equity Share Capital A/c (2,00,000 × 4)     To Securities Premium A/c (2,00,000 × 3) (Amount due on share first and final call) | | 14,00,000 | 8,00,000 6,00,000 | | | Bank A/c ...Dr. Calls in Arrears A/c ...Dr.     To Equity Share First and Final Call A/c (Call money received except on 4,000 shares @7) | | 13,72,000 28,000 | 14,00,000 | | | Equity Share Capital A/c (4000 × 10) ...Dr. Securities Premium A/c (4000 × 3) ...Dr.     To Share Forfeiture A/c (4000 × 6)     To Calls in Arrears A/c (4000 shares forfeited for non-payment of call) | | 40,000 12,000 | 24,000 28,000 | | | Bank A/c (4000 × 4) ...Dr. Share Forfeiture A/c (4000 × 6) ...Dr.     To Equity Share capital A/c (Reissue of 4,000 shares at ₹ 4 per share fully paid) | | 16,000 24,000 | 40,000 | | | Share Forfeiture A/c ...Dr.     To Capital Reserve A/c (Balance in share forfeiture account transferred. Since all were reissued and all discount utilized, balance is Nil. *No entry required for Capital Reserve transfer if balance is zero*) | | | |

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Accountancy > Accounting For Companies > Accounting For Share Capital

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