Ajanta Limited issued - 50,000 equity shares of 10 each payable as 3 per share on application, 5/- per share (including 2 as premium) on allotment…

In the books of Ajanta Limited Journal S. No. Particulars Amount (Dr.) ₹ Amount (Cr.) ₹ 1. Equity Share Capital A/c Dr. 30,000 Securities Premium A/c Dr. 2,000 To Equity Share Allotment A/c 5,000 To Equity Share Call A/c 12,000 To Shares Forfeited A/c 15,000 (Being forfeiture of3,000 equity shares for non payment of allotment and call money on 1,000 shares and for non-payment of call money on 2,000 shares as per Board’s Resolution No…..dated ….) 2. Bank A/c Dr. 20,000 Shares Forfeited A/c Dr. 5,000 To Equity Share Capital A/c 25,000 (Being re-issue of2,500 shares @8 each as per Board’s Resolution No……dated……) 3. Shares Forfeited A/c Dr. 7,000 To Capital Reserve A/c 7,000 (Being profit on re-issue transferred to Capital Reserve) Alternatively, Entry No.1 can also be routed through calls in Arrear Account. In that case, the entry shall be: Equity Share Capital A/c Dr. 30,000 Securities Premium A/c Dr. 2,000 To Calls in Arrear A/c 17,000 To Shares Forfeited A/c 15,000 (Being forfeiture of3,000 equity shares for non-payment of allotment and call money on 1,000 shares and for non-payment of call money on 2,000 shares as per Board’s Resolution No……. dated ….) Extract of Balance Sheet of Ajanta Limited as at…… Particulars Notes No. ₹ EQUITY AND LIABILITIES Shareholders’ funds Share capital 1 4,98,000 Reserves and Surplus 2 1,05,000 Total 6,03,000 ASSETS Current assets Cash and cash equivalents (bank)(workings) 6,03,000 Total 6,03,000 Notes to accounts Particulars ₹ 1. Share Capital Equity share capital Issued share capital 50,000 Equity shares of 10each 5,00,000 Subscribed, fully paid-up share capital 49,500 Equity shares of 10each 4,95,000 Add: Forfeited shares 3,000 4,98,000 2. Reserves and Surplus Securities Premium 98,000 Capital Reserve 7,000 1,05,000 Workings: Cash and cash equivalents Share application (₹ 50,000x 3) 1,50,000 Share allotment (₹ 49,000x 5) 2,45,000 Share call money (₹ 47,000x 4) 1,88,000 Share reissued (₹ 2,500x 8) 20,000 Total 6,03,000 Working Note: (1) Calculation of Amount to be Transferred to Capital Reserve Forfeited share of X No of Shares Amount ₹ Forfeited share of Y No of Shares Amount ₹ Amount forfeited per share of X 3 1000 3000 Amount forfeited per share of Y - 6 1500 9000 Less: Loss on re-issue per share (2) 1000 2000 Less: Loss on re-issue per share (2) 1500 3000 Surplus - 1 1000 1000 Surplus - 4 1500 6000 Transferred to Capital Reserve: 1,000 6,000 Total Transferred to Capital Reserve - 7,000 (2) Balance of Securities Premium Total Premium amount receivable on allotment 1,00,000 Less: Amount reversed on forfeiture (2, 000) Balance remaining (₹ 49,000 X 2) 98,000