CBSE 2015, Set 1

Question

'Blue Star Ltd.' was registered with an authorised capital of Rs 2,00,000 divided into 20,000 shares of Rs 10 each. 6,000 of these shares were issued to the vendor for building purchased. 8,000 shares were issued to the public and Rs 5 per share were called up as follows:
- On application: Rs 2 per share
- On allotment: Rs 1 per share
- On first call: Balance of called up amount

Amounts received:
- On 6,000 shares: Full amount called
- On 1,250 shares: Rs 3 per share
- On 750 shares: Rs 2 per share

The directors forfeited 750 shares on which Rs 2 per share were received.

Pass necessary journal entries for the above transactions in the books of Blue Star Ltd.

Edvaya · Accepted Answer

The correct answer is Subjective. **In the books of Blue Star Ltd. — Journal Entries** | Particulars | Dr. (Rs) | Cr. (Rs) | |---|---|---| | Machinery A/c Dr. | 60,000 | | | To Vendor A/c | | 60,000 | | *(Building purchased from vendor)* | | | | Vendor A/c Dr. | 60,000 | | | To Equity Share Capital A/c | | 60,000 | | *(Issued 6,000 shares of Rs 10 each to vendor)* | | | | Bank A/c Dr. | 16,000 | | | To Equity Share Application A/c | | 16,000 | | *(Application money on 8,000 shares @ Rs 2)* | | | | Equity Share Application A/c Dr. | 16,000 | | | To Equity Share Capital A/c | | 16,000 | | *(Application transferred to Share Capital)* | | | | Equity Share Allotment A/c Dr. | 8,000 | | | To Equity Share Capital A/c | | 8,000 | | *(Allotment due @ Rs 1 on 8,000 shares)* | | | | Bank A/c Dr. | 7,250 | | | To Equity Share Allotment A/c | | 7,250 | | *(Allotment received; 750 shares × Rs 1 = Rs 750 not paid)* | | | | Equity Share First Call A/c Dr. | 16,000 | | | To Equity Share Capital A/c | | 16,000 | | *(First call due @ Rs 2 on 8,000 shares)* | | | | Bank A/c Dr. | 12,000 | | | To Equity Share First Call A/c | | 12,000 | | *(First call received; 750 × Rs 2 = Rs 1,500 not paid; 1,250 already paid allotment deficit = Rs 0)* | | | | Equity Share Capital A/c Dr. | 3,750 | | | To Share Forfeiture A/c | | 1,500 | | To Equity Share Allotment A/c | | 750 | | To Equity Share First Call A/c | | 1,500 | | *(750 shares forfeited; received Rs 2 × 750 = Rs 1,500 on application only)* | | | > **Working:** 750 shares × Rs 5 called-up = Rs 3,750 debited to Share Capital. Received: 750 × Rs 2 = Rs 1,500 (application only). Not received: allotment Rs 750 + first call Rs 1,500.

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Accountancy > Accounting For Companies > Accounting For Share Capital

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