Q17. Surya Ltd. with a registered capital of 10,00,000 equity shares of Rs.10 each, issued 1,00,000 equity shares payable Rs.3 on application, Rs.2 on allotment, Rs. 3 on first call Rs. 2 on second and final call. The amount due on allotment was duly received except Mr. X holding 6,000 shares. His shares were immediately forfeited. On the first call being made, Mr. Y holding 5,000 equity shares paid the entire balance on his holding. Second call was not made.
Pass the necessary journal entries to record and transactions and show how the share capital will be resented in the balance sheet of the company. Also prepare notes to accounts.

Dear Student,
Date Particulars LF Amount (in Rs) Amount (in Rs)
  Bank A/c (1,00,000*3) Dr 300,000  
      To Share Application A/c     300,000
  (Share Application monet received)      
  Share Application A/c Dr 300,000  
       To Share Capital A/c     300,000
  (Share Application amount transferred to Share Capital A/c)      
  Share Allotment A/c (1,00,000*2) Dr 200,000  
    To Share Capital A/c     200,000
  (Amount due on allotment)      
  Bank A/c (94,000*2) Dr 188,000  
      To Share Allotment A/c     188,000
  (Amount received on allotment except on 6,000 shares of Mr X)      
  Share Capital A/c (6,000*5) Dr 30,000  
       To Share Forfeiture A/c     18,000
       To Share Allotment A/c     12,000
  (6,000 shares of Mr X forfeited)      
  Share First Call A/c (94,000*3) Dr 282,000  
       To Share Capital A/c     282,000
  (Amount due on Share first call)      
  Bank A/c (2,82,000+10,000) Dr 292,000  
     To Share First Call A/c     282,000
     To Calls-in-advance (5,000*2)     10,000
  (Amount received on first call along with second call on 5000 shares of Mr Y)      

Balance Sheet Extract :
I. Equity & Liabilities    
(I) Shareholders Funds Note No Amount (in Rs)
(a) Share Capital 1 770,000
(II) Current liabilities    
(a) Other Current liabilities   10,000

Notes to Accounts  
Note No 1  
Share Capital  
Particulars Amount (in Rs)
Authorised Share Capital  
10,00,000 equity shares of Rs 10 each 10,000,000
Issued Share Capital  
100,000 equity shares of Rs 10 each 1,000,000
Subscribed Share Capital  
94,000 shares @ Rs 10 each called up Rs 8 per share 752,000
Add: Share Forfeited (6,000*3) 18,000


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