Question

On April 1,2018 the Directors of Ashoka Methals Ltd., issued 60,000 equity shares of Rs. 10 each at Rs. 12 per share, the amount payable as Rs. 5 on application (including premium), Rs. 4 on allotment and the balance on July 15, 2018. On April 10, 2018 applications were received for 80,000 shares. Of the cash received in excess, Rs. 40,000 were returned and Rs. 60,000 were applied towards the amount due on allotment. The balance of allotment money was received on April 30, 2018. All the shareholders paid the call due on July 15,2018, with the exception of one shareholder holding 500 shares. These shares were forfeited on August 31, 2018. You are require to submit Journal Entries regarding the above transactions and also prepare the Balance Sheet of the Company on August 31, 2018.

Answer 1

Balance at Bank Rs. 7,18,500, Balance of Share Forfeiture A/c Rs. 3,500, Share Capital A/c Rs. 5,98,500. B/S total Rs. 7,18,500.
Hint : Applicants for 8,000 shares were not allotted any shares and the applicants for 72,000 shares were allotted 60,000 shares.
`{:("Share Application A/c Dr. 4,00,000",),(" To Share Capital A/c","1,80,000"),(" To Securities Premium Reserve A/c","1,20,000"),(" To Share Allotment A/c","60,000"),(" To Bank A/c","40,000"):}`