Doubts

Ankit Ltd. issued 20,000 equity shares of 10 each at a premium of Rs. 2 per share, payable as: 

On Application:Rs. 3On Allotment:Rs. 5 (including premium)On First Call:Rs. 2On Second and Final Call:Rs. 2 Vijay was allotted 500 shares. Pass the necessary Journal entries relating to the forfeiture of shares in following cases.…

Continue ReadingAnkit Ltd. issued 20,000 equity shares of 10 each at a premium of Rs. 2 per share, payable as: 

Alpha Ltd. issued 20,000 Equity Shares of Rs. 10 each at par payable: On application Rs. 2 per share; on allotment Rs. 3 per share; on first call Rs. 3 per share; on second and final call Rs. 2 per share. Mr. Gupta was allotted 100 shares. Pass necessary Journal entry relating to the forfeiture of shares in each of the following alternative cases:

Case IIf Mr. Gupta failed to pay the allotment money and his shares were immediately forfeited.Case IIIf Mr. Gupta failed to pay allotment money and on his subsequent failure to…

Continue ReadingAlpha Ltd. issued 20,000 Equity Shares of Rs. 10 each at par payable: On application Rs. 2 per share; on allotment Rs. 3 per share; on first call Rs. 3 per share; on second and final call Rs. 2 per share. Mr. Gupta was allotted 100 shares. Pass necessary Journal entry relating to the forfeiture of shares in each of the following alternative cases:

Light Lamps Ltd. issued 50,000 shares of Rs. 10 each as fully paid-up to the promoters for their services to set-up the company. It also issued 2,000 shares of Rs. 10 each credited as fully paid-up to the underwriters of shares for their services. journalise these transactions

Solution

Continue ReadingLight Lamps Ltd. issued 50,000 shares of Rs. 10 each as fully paid-up to the promoters for their services to set-up the company. It also issued 2,000 shares of Rs. 10 each credited as fully paid-up to the underwriters of shares for their services. journalise these transactions

Better Prospect Ltd. acquired land costing Rs. 1,00,000 and in payment allotted 1,000 Equity Shares of Rs. 100 each as fully paid. Further, the company issued 4,000 Equity Shares to public. The shares were payable as:  Rs. 30 on application; Rs. 30 on allotment; Rs. 40 on first and final call.

Applications were received for all shares which were allotted. All the money was received except the call on 200 shares. Pass journal entries and prepare Balance Sheet of the company.  Solution

Continue ReadingBetter Prospect Ltd. acquired land costing Rs. 1,00,000 and in payment allotted 1,000 Equity Shares of Rs. 100 each as fully paid. Further, the company issued 4,000 Equity Shares to public. The shares were payable as:  Rs. 30 on application; Rs. 30 on allotment; Rs. 40 on first and final call.

Sandesh Ltd. took over the assets of Rs. 7,00,000 and liabilities of   Rs. 2,00,000 from Sanchar Ltd. for a purchase consideration of Rs. 4,59,500.  Rs. 8,500 were paid by accepting a draft in favour of Sanchar Ltd. payable after three months and the balance was paid by issue of equity shares of Rs. 10 each at a premium of 10% in favour of Sanchar Ltd.Pass necessary journal entries for the above transactions in the books of Sandesh Ltd.

Solution

Continue ReadingSandesh Ltd. took over the assets of Rs. 7,00,000 and liabilities of   Rs. 2,00,000 from Sanchar Ltd. for a purchase consideration of Rs. 4,59,500.  Rs. 8,500 were paid by accepting a draft in favour of Sanchar Ltd. payable after three months and the balance was paid by issue of equity shares of Rs. 10 each at a premium of 10% in favour of Sanchar Ltd.Pass necessary journal entries for the above transactions in the books of Sandesh Ltd.

Sure Ltd. purchased a running business from M/s. Rai Brothers for a sum of Rs. 15,00,000 payable Rs. 12,00,000 in fully paid shares of Rs. 10 each and balance through cheque.

The assets and liabilities consisted of the following:   Plant and     Machinery  Rs. 4,00,000  Stock  Rs. 4,00,000  Building  Rs. 4,00,000  Cash  Rs. 3,00,000  Sundry Debtors  Rs. 3,00,000  Sundry Creditors  Rs. 2,00,000 You are required to pass necessary Journal entries in the company's books. Solution

Continue ReadingSure Ltd. purchased a running business from M/s. Rai Brothers for a sum of Rs. 15,00,000 payable Rs. 12,00,000 in fully paid shares of Rs. 10 each and balance through cheque.

Bharat Lamp Ltd. issued 30,000 fully paid-up shares of Rs. 100 each for purchase of the following assets and liabilities from Sharma & Co: 

Plant  Rs. 7,00,000 Stock-in-Trade Rs. 9,00,000Land and Building  Rs. 12,00,000 Sundry Creditors  Rs. 2,00,000 You are required to pass necessary Journal entries. Solution

Continue ReadingBharat Lamp Ltd. issued 30,000 fully paid-up shares of Rs. 100 each for purchase of the following assets and liabilities from Sharma & Co: 

Sona Ltd.  purchased machinery costing Rs. 17,00,000 from Mona Ltd. Sona Ltd. paid 20% of the amount by cheque and for the balance amount issued Equity Shares of Rs. 100 each at a premium of 25%. Pass necessary Journal entries for the above transactions in the books of Sona Ltd. Show your working notes clearly.

Solution

Continue ReadingSona Ltd.  purchased machinery costing Rs. 17,00,000 from Mona Ltd. Sona Ltd. paid 20% of the amount by cheque and for the balance amount issued Equity Shares of Rs. 100 each at a premium of 25%. Pass necessary Journal entries for the above transactions in the books of Sona Ltd. Show your working notes clearly.

Jain Ltd purchased machinery costing Rs. 10,00,000 from Ayer Ltd. 50% of the payment was made by cheque and for the remaining 50%, the company issued Equity Shares of Rs. 100 each at a premium of 25%. Pass necessary Journal entries in the books of Jain Ltd. for the above transaction.

Solution

Continue ReadingJain Ltd purchased machinery costing Rs. 10,00,000 from Ayer Ltd. 50% of the payment was made by cheque and for the remaining 50%, the company issued Equity Shares of Rs. 100 each at a premium of 25%. Pass necessary Journal entries in the books of Jain Ltd. for the above transaction.