Solution

SHARES DEBENTURES

Class 12 - Accountancy

1. (a) 4,00,000
Explanation: Value of Goodwill = 32,00,000 (Total of liability) - 28,00,000 (Total of Assets) = 4,00,000
2.
(c) 90,000
Explanation: No of shares issued
= 900000 /10
= 90,000

3.
(c) ₹ 10
Explanation: ₹ 10
4. (a) 12,000
Explanation: Total forfeited share
600
= 50%

= 1,200 shares
Amount of forfeited share used at the time of Reissue
= (600 × 20) - (600 × 16)
= 12,000 - 9,600
e
= 2,400
pir
Amount of forfeiture Credited
(3,600+2,400)
= 600
× 1,200
= 12,000
As

5. (a) 10% p.a.

Explanation: 10% p.a.
6. (a) All of these
Explanation: All of these
7. (a) Par
Explanation: When debentures are issued at par they are issued at the face value itself. In discount they are issued at an
amount less than the nominal value and debentures issued at premium are issued at a price more than the
face value.
8. (a)
Sundry Assets A/c Dr.

To Sundry Liabilities A/c

To Vendor's A/c

Explanation: When the purchase consideration is equal to net assets while purchasing business from vendor the Asset Account
is debited and the Liability Account and Vendor Account are credited.
9. EXTRACT OF BALANCE SHEET OFSUN PHARMA LTD.
as at ...
Particulars Note No. Current Year Previous Year

₹ ₹

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 EQUITY & LIABILITIES:

Shareholders Fund:

(a) Share Capital 1 49,90,000

Notes to Accounts:
Particulars ₹

(1) Share Capital:

Authorised Capital: 1,00,000 Equity Shares of ₹100 each 1,00,00,000

Issued Capital: 50,000 Equity Shares of ₹100 each 50,00,000

Subscribed and Fully Paid:

49,500 Equity Shares of ₹100 each 49,50,000

Add: Share Forfeiture Account 40,000 49,90,000

10. In the Books of Shovan Limited
Journal Entries
Date Particulars L.F Debit Amount (₹) Credit Amount (₹)

Sundry Assets A/c Dr. 60,00,000

To Sundry Liabilities A/c 10,00,000

To Swami Ltd. A/c 45,00,000

To Capital Reserve A/c 5,00,000

e
(Purchased assets and took over liabilities from Swami Ltd.)
pir
Swami Ltd. A/c Dr. 45,00,000

To 10% Debentures A/c 36,00,000

As

To Securities Premium/ Securities Premium Reserve A/c 9,00,000

(Issued 36,000 10% debentures to Swami Ltd at premium of 25% )

11. CASH BOOK
Dr. Cr.

Particulars L.F. ₹ Particulars L.F. ₹

To Share Application A/c 1,25,000 By Balance c/d 4,86,500

To Share Allotment A/c 1,22,500

To Share First Call A/c 98,000

To Share Final Call A/c

1,41,000
(₹ 1,47,000 - ₹ 6,000)
4,86,500 4,86,500
JOURNAL
Date Particulars L.F. Dr. (₹) Cr. (₹)

Share Application A/c Dr. 1,25,000

To Share Capital A/c

1,25,000
(Application money transferred to Share Capital A/c)

Share Allotment A/c Dr. 1,25,000

To Share Capital A/c 1,25,000

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 (Amount due on Allotment)

Share First Call A/c Dr. 1,00,000

To Share Capital A/c

1,00,000
(Amount due on Allotment)

Share Capital A/c Dr. 7,000

To Share Allotment A/c 2,500

To Share First Call A/c 2,000

To Share Forfeiture A/c

2,500
(100 shares forfeited for non-payment of Allotment and First Call)

Share Final Call A/c Dr. 1,47,000

To Share Capital A/c 1,47,000

Share Capital A/c Dr. 20,000

To Share Final Call A/c 6,000

To Share Forfeiture A/c

14,000
(200 shares forfeited for non-payment of Final Call)
1. When Cash Book Entries are asked in the question, all cash transactions are to be recorded in Cash Book, other non-cash
transactions should be entered in the journal.
12.
e JOURNAL
pir
Date Particulars L.F Amt (Dr) Amt (Cr)

Bank A/c (1,50,000 × 2) Dr. 3,00,000 ...

To Equity Share Application A/c ... 3,00,000

As

(Being application money received) ... ...

Equity Share Application A/c Dr. 3,00,000 ...

To Share Capital A/c (1,00,000 × 2) ... 2,00,000

To Bank A/c (50,000 × 2) ... 1,00,000

(Being application money transferred to share capital account) ... ...

Equity Share Allotment A/c (1,00,000 × 4) Dr. 4,00,000 ...

To Share Capital A/c ... 4,00,000

(Being allotment money due) ...... ...

Bank A/c Dr. 3,90,800 ...

To Equity Share Allotment A/c (97,000 × 4) ... 3,88,000

To Calls-in-advance A/c (700 × 2) + (700 × 2) ... 2,800

(Being allotment money received) ... ...

Equity Share First Call A/c (1,00,000 × 2) Dr. 2,00,000 ...

To Share Capital A/c ... 2,00,000

(Being first call money due) ... ...

Bank A/c Dr. 2,08,600 ...

Calls-in-advance A/c (700 × 2) Dr. 1,400 ...

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 To Equity Share First Call A/c (99,000 × 2) ... 1,98,000

To Equity Share Allotment A/c (3,000 × 4) ... 12,000

(Being first call money received) ... ...

Equity Share Second and Final Call A/c (1,00,000 × 2) Dr. 2,00,000 ...

To Share Capital A/c ... 2,00,000

(Being final call money due) ... ...

Bank A/c (98,300 × 2) Dr. 1,96,600 ...

Call-in-advance (700 × 2) Dr. 1,400 ...

To Share Second and Final Call A/c ... 1,98,000

(Being amount received on second and final call) ... ...

Equity Share Capital A/c (1,000 × 10) Dr. 10,000 ...

To Share Forfeiture A/c (1,000 × 6) ... 6,000

To Equity Share First Call A/c (1,000 × 2) ... 2,000

To Equity Share Second Call A/c(1,000 × 2) ... 2,000

(Being shares forfeited) ... ...

Bank A/c (1,000 × 11) Dr. 11,000 ...

To Share Capital A/c (1,000 × 10) ... 10,000

e
To Securities Premium Reserve (1,000 × 1) ... 1,000
pir
(Being shares reissued @ Rs. 11 per share, fully paid-up) ... ...

Share Forfeiture A/c Dr. 6,000 ...

To Capital Reserve A/c ... 6,000

As

(Being gain on reissue transferred to capital reserve) ... ...

category applied alloted share application share capital share allotment bank

A 1,00,000 1,00,000 3,00,000 3,00,000 --------------

B 50,000 ------- 1,00,000 ------------ 1,00,000

TOTAl 1,50,000 1,00,000 4,00,000 3,00,000 ------------------- 1,00,000

share/call application allotment 1st call 2nd call

Due 1,00,000x2=2,00,000 1,00,000x4=4,00,000 1,00,000x2=2,00,000 1,00,000x2=2,00,000

4,00,000-(3000x4)calls in 2,00,000-(1,000x2)calls in arrears 2,00,000-(1,000 x

1,50,000x2=3,00,000
Received arrears +(700x4) calls in +12000(3000x4)allotment arrear 2)calls in arrears
-1,00,000(Rejected)
advances =3,90,800 received with first call =1,98,000
13. Books of Amrit Ltd.
JOURNAL
Amount Amount
Date Particulars L.F.
(₹) (₹)

(i) Bank A/c Dr. 9,00,000

To Debenture Application and Allotment A/c

(Receipt of application money on 10,000, 9% debentures of ₹ 100 each at a discount of 9,00,000
10%)

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Debentures Application and Allotment A/c Dr. 9,00,000

Loss on issue of debentures A/c Dr. 1,50,000

To 9% Debentures A/c 10,00,000

To Premium on redemption of Debentures A/c

(Transfer of debenture application money and provision for premium on redemption of 50,000
debentures made)

Alternatively,

Debentures Application and allotment A/c Dr. 9,00,000

Discount on issue of debentures A/c Dr. 1,00,000

Loss on issue of debentures A/c Dr. 50,000

To 9% Debentures A/c 10,00,000

To Premium on redemption of Debentures A/c

(Transfer of debenture application money and provision for premium on redemption of 50,000
debentures made)

(ii) Bank A/c Dr. 30,00,000

To Debenture Application and Allotment A/c

30,00,000
(Receipt of application money on 30,000, 8% debentures of ₹ 100 each at par)

Debentures Application and allotment A/c Dr. 30,00,000

e
Loss on issue of debentures A/c Dr. 1,50,000
pir
To 8% Debentures A/c 30,00,000

To Premium on redemption of Debentures A/c

(Transfer of debenture application money and provision for premium on redemption of 1,50,000
As

debentures made)

(iii) Bank A/c Dr. 6,60,000

To Debenture Application and Allotment A/c

(Receipt of application money on 6000, 9% debentures of ₹ 100 each at a premium of 6,60,000
10%)

Debentures Application and allotment A/c Dr. 6,60,000

Loss on issue of debentures A/c Dr. 30,000

To 9% Debentures 6,00,000

To Securities Premium /Securities Premium Reserve A/c 60,000

To Premium on redemption of Debentures A/c

(Transfer of debenture application money to debentures A/c, Securities premium A/c 30,000
and provision for premium on redemption of debentures made)

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