8.Sumit Machine Ltd. issued 50,000 shares of Rs. 100 each at premium of 5%. The shares were payable Rs. 25 on application, Rs. 50 on allotment and Rs. 30 on first and final call. The issue was fully subscribed and money was duly received except the final call on 400 shares. The premium was adjusted on allotment.
Give journal entries and prepare balance sheet.
Books of Sumit Machine Ltd.
Journal
| Date | Particulars | L.F | Amount (Dr.) | Amount (Cr.) | |
| Bank A/c | 12,50,000 | ||||
| To share Application A/c | 12,50,000 | ||||
| ( Share application money received for 50,000 shares @ Rs 25 each ) | |||||
| share Application A/c | 12,50,000 | ||||
| To Share capital A/c | 12,50,000 | ||||
| ( share Application money transfered to Share capital A/c) | |||||
| Share Allotment A/c | 25,00,000 | ||||
| To Share Capital A/c | 22,50,000 | ||||
| To Securities Premium A/c | 2,50,000 | ||||
| ( Money due on Share Allotment for 50,000 shares @ Rs 45 and @ Rs 5 for premium each share ) | |||||
| Bank A/c | 25,00,000 | ||||
| To Share Allotment A/c | 25,00,000 | ||||
| ( Allotment money received for 50,000 shares @ Rs 50 each) | |||||
| Share first and final call A/c | 15,00,000 | ||||
| To Share Capital A/c | 15,00,000 | ||||
| ( Share first and final call money due on 50,000 shares @ Rs 30 per share ) | |||||
| Bank A/c | 14,88,000 | ||||
| Calls in arrears | 12,000 | ||||
| To Share first and final call A/c | 15,00,000 | ||||
| ( Share first and final call money received ) | |||||
Balance Sheet
| Particulars | Note No. | Amount (Rs.) |
| I. Equity and Liabilities | ||
| 1. Shareholders’ Funds | 1 | 49,88,000 |
| a. Share Capital | 2 | 2,50,000 |
| b. Reserves and Surplus | ||
| Total | 52,38,000 | |
| II. Assets | ||
| Non-Current Assets | ||
| Current Assets | ||
| a. Cash and Cash Equivalents | 3 | 52,38,000 |
| Total | 52,38,000 | |
Notes to Accounts:
Note No. | Particulars | Amount (Rs.) | |
| 1. | Share Capital | ||
| Authorised Share Capital shares of ₹ 100 each | |||
| Issued Share Capital 50,000 shares of ₹ 100 each | 50,00,000 | ||
| Subscribed, Called-up and Paid-up Share Capital 50,000 shares of ₹ 100 each | 50,00,000 | ||
| Less: Calls-in-Arrears | (12,000) | 49,88,000 | |
| 2. | Reserves and Surplus | ||
| Securities Premium Reserve | 2,50,000 | ||
| 3. | Cash and Cash Equivalents | ||
| Cash at Bank (Share Capital + Reserves and Surplus ) | 52,38,000 | ||