Himalaya Company Limited issued for Public Subscription of 1,20,000 Equity Shares Of Rs 10 Each At A LOSS of Rs 2 per Share Payable As Under -Accountancy

 15.Himalaya Company Limited issued for public subscription of 1,20,000 equity shares of Rs 10 each at a premium of Rs 2 per share payable as under :

With Application	Rs.3 per share
On allotment (including premium)	Rs.5 per share
On First call	Rs.2 per share
On Second and Final Call	Rs.2 per share

Applications were received for 1,60,000 shares. Allotment was made on pro-rata basis. Excess money on application was adjusted against the amount due on allotment.

Rohan, whom 4,800 shares were allotted, failed to pay for the two calls. These shares were subsequently forfeited after the second call was made. All the shares forfeited were reissued to Teena as fully paid at Rs 7 per share.

Books of Himalaya Company Limited

Journal

  

Date	Particulars		L.F	Amount (Dr.)	Amount  (Cr.)
	Bank A/c			4,80,000
	To Equity Equity Share Application A/c				4,80,000
	( Application Money received for 1,60,000 Equity shares @ Rs. 3 Per Share )
	Equity Share Application A/c			4,80,000
	To Equity Share Capital A/c				3,60,000
	Equity share Allotment A/c				1,20,000
	( Being Equity share application money transferred to Equity Share Capital A/c and excess money adjusted to allotment A/c )
	Equity share Allotment A/c			6,00,000
	To Securities premium A/c				2,40,000
	To Equity Share Capital A/c				3,60,000
	( Money due on Allotment for 1,20,000 shares @ Rs.3 each and along with premium money @ Rs 2 each )
	Bank A/c			4,80,000
	To Equity Share Allotment A/c				4,80,000
	( Allotment money received on 1,20,000 shares @Rs. 5 )
	Equity share First Call A/c			2,40,000
	To Equity Share Capital A/c				2,40,000
	(Money due on Equity share First Call for 1,20,000 shares @ Rs 2 per share )
	Bank A/c			2,30,400
	To Equity share First Call A/c				2,30,400
	( share First Call money received for 1,15,200 @ Rs 2 per share remaining 4,800 shares ‘ owner fail to pay the call money )
	Equity share second and final Call A/c			2,40,000
	To Equity Share Capital A/c				2,40,000
	(Money due on Equity share second and final Call for 1,20,000 shares @ Rs 2 per share )
	Bank A/c			2,30,400
	To Equity share second and final Call A/c				2,30,400
	( share share second and final Call money received for 1,15,200 @ Rs 2 per share remaining 4,800 shares ‘ owner fail to pay the call money )
	Share Capital A/c			48,000
	To Equity Share first call A/c				9,600
	To Equity share second and final Call A/c				9,600
	To share forfeiture A/c				28,800
	( 4,800 shares were forfeited for non-payment of both call money )
	Bank A/c			36,600
	Share forfeiture A/c			14,400
	To Equity share Capital A/c				48,000
	( 4,800 shares reissued @ Rs 7 per share )
	Share Forfeiture A/c			14,400
	To Capital Reserve A/c				14,400
	(Share forfeiture balance of 4,800 shares  transferred to Capital Reserve Account)

Balance Sheet

Particulars	Note No.	Amount
I. Equity & liabilities
1.Share holders fund
a.Share Capital	1	12,00,000
b.Reserve and surplus	2	2,54,400
2.Non-Current Liabilities
3.Current Liabilities
Total		14,54,000
II.Assets
1.Non-current Assets
2.current Assets
a.Cash And Cash equivalents	3	14,54,000
Total		14,54,000

Notes to Account:

Note No.	Particulars		Amount
1.	Share Capital
	Authorised Capital ……..shares @ Rs 10 per share
	Issued Capital 1,20,000 shares @ Rs 10 per shares each		12,00,000
	Subscribed,Called Up, Paid up share Capital 1,20,000 shares of Rs 10 each		12,00,000
2.	Reserve and Surplus
	Securities premium	2,40,000
	Capital Reserve	14,400	2,54,400
3.	Cash and Cash equivalents
	Cash at bank		14,54,000

Chapter-1 Accounting for Share Capital-II

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