Q 102 DK Goel Issue of Shares Solutions Class 12 CBSE (2024-25)

Solution of Question number 102 of Accounting for Companies Issue of shares chapter 6 of DK Goel Class 12 CBSE (2024-25)

Mahadev Ltd. with an authorised capital of ₹ 5,00,000 divided into 50,000 equity shares of ₹ 10 each, issues the entire amount of the shares payable as follows:

₹ 5 on Application (including premium of ₹ 3 per share)

₹ 4 on Allotment, and

₹ 4 on Call.

All share money is received in full with the exception of the allotment on 200 shares and the call money on 500 shares (including the 200 shares on which the allotment money has not been paid).

The above 500 shares are duly forfeited and 400 of these (including the 200 shares on which allotment money has not been paid) are re-issued at ₹ 8 per share as fully paid up. Pass journal entries (including cash transactions) and show the share capital in the Balance Sheet.

[Ans. Capital Reserve ₹ 800; Subscribed and Fully Paid Capital ₹ 4,99,000; Share Capital ₹ 4,99,600.]

Solution:-