The Balance Sheet of Dynamic Limited as at 31 st March, 2024, inter-alia, includes the following information Particulars Amount (₹) 10,00,000 Equity…

In the books of Dynamic Limited Journal Entries Particulars Amount ₹ Amount ₹ 9% Preference Share Final Call A/c Dr. 30,00,000 To 9% Preference Share Capital A/c 30,00,000 (For final call made on preference shares @30 each to make them fully paid up) Bank A/c Dr. 28,80,000 Calls in arrears A/c 1,20,000 To 9% Preference Share Final Call A/c 30,00,000 (For receipt of final call money on preference shares) 9% Preference Share Capital A/c Dr. 4,00,000 To Calls in Arrears A/c 1,20,000 To Shares Forfeited A/c 2,80,000 (For Shares Forfeited after shareholders fail to pay the Final Call) Share Forfeiture A/c Dr. 2,80,000 To Capital Reserve 2,80,000 (Share forfeiture amount transferred to Capital reserve) Bank A/c Dr. 20,00,000 To Equity Share Application A/c 20,00,000 (For receipt of application money on 10,00,000 equity shares @2 per share) Equity Share Application A/c Dr. 20,00,000 To Equity Share Capital A/c 20,00,000 (For capitalisation of application money received) Equity Share Allotment A/c Dr. 40,00,000 To Equity Share Capital A/c 30,00,000 To Securities Premium A/c 10,00,000 (For allotment money due on 10,00,000 equity shares @4 per share including a premium of 1per share) Bank A/c Dr. 40,00,000 To Equity Share Allotment A/c 40,00,000 (For receipt of allotment money on equity shares) General Reserve A/c (WN -1) Dr. 46,00,000 To Capital Redemption Reserve A/c 46,00,000 (For transfer of CRR the amount not covered by the proceeds of fresh issue of equity shares i.e.,96,00,000 -20,00,000 -30,00,000) 9% Preference Share Capital A/c Dr. 96,00,000 Premium on Redemption of Preference Shares A/c Dr. 4,80,000 To Preference Shareholders A/c 1,00,80,000 (For amount payable to preference shareholders on redemption at 5% premium) Preference Shareholders A/c Dr. 1,00,80,000 To Bank A/c 1,00,80,000 (For amount paid to preference shareholders) General Reserve A/c/ Securities Premium A/c Dr. 4,80,000 To Premium on Redemption of Pref. Shares A/c 4,80,000 (For writing off premium on redemption of preference shares) Working Note: (1) Amount transferred to Capital Redemption Reserve Preference Shares to be redeemed (₹ 96,000x 100) 96,00,000 (-) Face Value of shares issued (₹ 10,00,000x (₹ 2+3)) 50,00,000 46,00,000 Alternatively, journal entries for share forfeiture can also be passed without using calls in arrears A/c. In that case, the2 nd and3 rd entry shall be Bank A/c Dr. 28,80,000 To 9% Preference Share Final Call A/c 28,80,000 (For receipt of final call money on preference shares) 9% Preference Share Capital A/c Dr. 4,00,000 To 9% Preference Share Final Call A/c 1,20,000 To Shares Forfeited A/c 2,80,000 (For Shares Forfeited after shareholders fail to pay the Final Call)