Accountancy

Goodluck Ltd purchased machinery costing Rs. 10,00,000 from Fair Deals Ltd. The company paid the price by issue of Equity Shares of Rs. 10 each at a premium of 25%.Pass necessary Journal entries for the above transactions in the books of Goodluck Ltd. 

Solution

Continue ReadingGoodluck Ltd purchased machinery costing Rs. 10,00,000 from Fair Deals Ltd. The company paid the price by issue of Equity Shares of Rs. 10 each at a premium of 25%.Pass necessary Journal entries for the above transactions in the books of Goodluck Ltd. 

Z Ltd. purchased furniture costing Rs. 2,20,000 from C.D Ltd. The payment was to be made by issue of 9% Preference Shares of Rs. 100 each at premium of Rs. 10 per share. Pass necessary Journal entries in the books of Z Ltd.

Solution

Continue ReadingZ Ltd. purchased furniture costing Rs. 2,20,000 from C.D Ltd. The payment was to be made by issue of 9% Preference Shares of Rs. 100 each at premium of Rs. 10 per share. Pass necessary Journal entries in the books of Z Ltd.

Rajan Ltd. purchased assets from Geeta & Co. for Rs. 5,00,000. A sum of Rs. 1,00,000 was paid by means of a bank draft and for the balance due Rajan Ltd. issued equity Shares of Rs. 10 each at a premium of 25%. journalise the above transactions in the books of the company.

Solution

Continue ReadingRajan Ltd. purchased assets from Geeta & Co. for Rs. 5,00,000. A sum of Rs. 1,00,000 was paid by means of a bank draft and for the balance due Rajan Ltd. issued equity Shares of Rs. 10 each at a premium of 25%. journalise the above transactions in the books of the company.

Amrit Dhara Ltd.’ issued 800 Equity Shares of Rs. 100 each at a premium of 25% as fully paid-up in consideration of the purchase of plant and machinery of Rs. 1,00,000. Pass entries in company’s Journal.

Solution

Continue ReadingAmrit Dhara Ltd.’ issued 800 Equity Shares of Rs. 100 each at a premium of 25% as fully paid-up in consideration of the purchase of plant and machinery of Rs. 1,00,000. Pass entries in company’s Journal.

X Ltd. was formed with a capital of 10,00,000 divided into shares of 100 each. It offered 90% shares to public for subscription. The amount per share was payable as 40% on application, 20% on allotment and the balance on first and final call. The applicants paid 3,60,000 on application and 1,69,000 on allotment. The call has not yet been made. Calculate:(a) Authorised Capital, (b) Issued Capital, (c) Subscribed Capital, (d) Called-up Capital, (e) Paid-up Capital and (f) Calls-in-Arrears.​

Solution

Continue ReadingX Ltd. was formed with a capital of 10,00,000 divided into shares of 100 each. It offered 90% shares to public for subscription. The amount per share was payable as 40% on application, 20% on allotment and the balance on first and final call. The applicants paid 3,60,000 on application and 1,69,000 on allotment. The call has not yet been made. Calculate:(a) Authorised Capital, (b) Issued Capital, (c) Subscribed Capital, (d) Called-up Capital, (e) Paid-up Capital and (f) Calls-in-Arrears.​

Bharat Ltd made the first call of Rs. 2 per share on its 1,00,000 Equity Shares on 1st March, 2006. Ashok, a shareholder, holding 800 shares paid the second and final call amount along with the first call money. The second and final call amount was Rs. 3 per share. Pass necessary journal entries for recording the above using the Calls-in Advance Account.

Solution

Continue ReadingBharat Ltd made the first call of Rs. 2 per share on its 1,00,000 Equity Shares on 1st March, 2006. Ashok, a shareholder, holding 800 shares paid the second and final call amount along with the first call money. The second and final call amount was Rs. 3 per share. Pass necessary journal entries for recording the above using the Calls-in Advance Account.

Green Ltd. issued 8,000 Equity Shares of Rs. 10 each. Rs. 5 per share was called, payable Rs. 2 on application, Rs. 1 on allotment, Rs. 1 on first call and Rs. 1 on second call. All the money was duly received with the following exceptions:   A who holds 250 shares paid nothing after application. B who holds 500 shares paid nothing after allotment. C who holds 1,250 shares paid nothing after first call. Prepare Journal and the Balance Sheet.

Solution

Continue ReadingGreen Ltd. issued 8,000 Equity Shares of Rs. 10 each. Rs. 5 per share was called, payable Rs. 2 on application, Rs. 1 on allotment, Rs. 1 on first call and Rs. 1 on second call. All the money was duly received with the following exceptions:   A who holds 250 shares paid nothing after application. B who holds 500 shares paid nothing after allotment. C who holds 1,250 shares paid nothing after first call. Prepare Journal and the Balance Sheet.

Star Ltd was registered with a capital of Rs. 5,00,000 in shares of Rs. 10 each and issued 20,000 such shares at a premium of Rs. 2 per share, payable as Rs. 2 per share on application, Rs. 5 per share on allotment (including premium) and Rs. 2 per share on first call made three months later. All the money payable on application and allotment was duly received but when the first call was made, one shareholder paid the entire balance on his holding of 300 shares and another shareholder holding 1,000 shares failed to pay the first call money. Pass journal entries to record the above transactions and show how they will appear in the company’s Balance Sheet.

Solution

Continue ReadingStar Ltd was registered with a capital of Rs. 5,00,000 in shares of Rs. 10 each and issued 20,000 such shares at a premium of Rs. 2 per share, payable as Rs. 2 per share on application, Rs. 5 per share on allotment (including premium) and Rs. 2 per share on first call made three months later. All the money payable on application and allotment was duly received but when the first call was made, one shareholder paid the entire balance on his holding of 300 shares and another shareholder holding 1,000 shares failed to pay the first call money. Pass journal entries to record the above transactions and show how they will appear in the company’s Balance Sheet.