| Scenario 1 | ||||||||||
| Date | Journal | Debit | Credit | |||||||
| 30-Sep | Bank (50000 shares *$2) | 1,00,000.00 | ||||||||
| Share application | 1,00,000.00 | |||||||||
| (Being share application money received on 50000 share @ $2 per share) | ||||||||||
| 30-Sep | Share application (40000 shares *$2) | 80,000.00 | ||||||||
| Share capital | 80,000.00 | |||||||||
| (Being share application money on 40000 shares transferred to share capital account) | ||||||||||
| 10-Oct | Share Allotment (40000 shares *$0.80) | 32,000.00 | ||||||||
| Share capital | 32,000.00 | |||||||||
| (Being share application money received on 50000 share @ $2 per share) | ||||||||||
| 10-Oct | Bank ($32000-$20000) | 12,000.00 | ||||||||
| Share application ($100000-$80000) | 20,000.00 | |||||||||
| Share Allotment | 32,000.00 | |||||||||
| (Being excess money on share application adjusted against share allotment and remaining cash received on allotment) | ||||||||||
| 15-Oct | Underwriting commission | 2,500.00 | ||||||||
| Bank | 2,500.00 | |||||||||
| (Being under writing commission paid) | ||||||||||
| Scenario 2 | ||||||||||
| 01-Aug | Bank (300000*3)+((1750000-300000)*1.5) | 30,75,000.00 | ||||||||
| Share application | 30,75,000.00 | |||||||||
| (Being share application money received on 300000 share @ $3 per share and on 1450000 shares @ $1.50) | ||||||||||
| 01-Aug | Share application (1500000 shares *$1.5) | 22,50,000.00 | ||||||||
| Share capital | 22,50,000.00 | |||||||||
| (Being share application money on 1500000 shares transferred to share capital account) | ||||||||||
| 05-Aug | Share Allotment (1500000 shares *$0.50) | 7,50,000.00 | ||||||||
| Share capital | 7,50,000.00 | |||||||||
| (Being share application money received on 1500000 share @ $0.50 per share) | ||||||||||
| 30-Aug | Bank (1450000 shares * $0.50) | 6,00,000.00 | ||||||||
| Share application (300000 shares @0.50) | 1,50,000.00 | |||||||||
| Share Allotment | 7,50,000.00 | |||||||||
| (Being excess money on share application on 300000 shares adjusted against share allotment and remaining cash received on allotment) | ||||||||||
| 01-Nov | Final Call (1500000 shares *$1) | 15,00,000.00 | ||||||||
| Share capital | 15,00,000.00 | |||||||||
| (Being final call due on 1500000 share @ $1 per share) | ||||||||||
| 01-Nov | Bank (1150000 shares * $1) | 11,50,000.00 | ||||||||
| Calls in arrear | 50,000.00 | |||||||||
| Share application (300000 shares @1) | 3,00,000.00 | |||||||||
| Final Call | 15,00,000.00 | |||||||||
| (Being excess money received on share application on 300000 shares adjusted and call money received 1150000 and remained in arrear on 50000 shares) | ||||||||||
| Scenario 3 | ||||||||||
| Redeemable Preference Share Capital | 65,000.00 | |||||||||
| Premium of Redemption Preference Share Capital | 15,000.00 | |||||||||
| Preference shareholders | 80,000.00 | |||||||||
| (Being amount of preference share capital and premium on redemption transferred to preference share holder account) | ||||||||||
| Retained earnings | 15,000.00 | |||||||||
| Premium of Redemption Preference Share Capital | 15,000.00 | |||||||||
| (Being amount of Premium of Redemption Preference Share Capital charged to retained earnings) | ||||||||||
| Retained earnings | 65,000.00 | |||||||||
| Capital Redemption Reserve | 65,000.00 | |||||||||
| (Being Capital Redemption Reserve created for nominal value of redemption) | ||||||||||
| Preference shareholders | 80,000.00 | |||||||||
| Bank | 80,000.00 | |||||||||
| (Being amount paid to the preference share holders) | ||||||||||
| Scenario 4 | ||||||||||
| 20-Feb | Bank (7000 shares*$1.4) | 9,800.00 | ||||||||
| Share forfeited ($12600-$9800) | 2,800.00 | |||||||||
| Share capital (7000 shares*$1.8) | 12,600.00 | |||||||||
| (Being 7000 forfeited shares reissues at discount) | ||||||||||
| No of share forfeited = 3500/0.50 = 7000 shares | ||||||||||
| 20-Feb | Share forfeited | 500.00 | ||||||||
| Share Issue expense | 500.00 | |||||||||
| (Being share issues cost charged to Share forfeited) | ||||||||||
| 21-Feb | Share forfeited | 5,800.00 | ||||||||
| Capital reserve | 5,800.00 | |||||||||
| (Being balance in share forfeited account transferred to capital reserve account) | ||||||||||
| 21-Feb | Balance in share forfeited A/c | |||||||||
| Money received on Share forfeited = 7000*1.3= 9100 | ||||||||||
| Less Discount on reissue (2800) + issue cost (500) = 5800 | ||||||||||
| Scenario 5 | ||||||||||
| 05-Mar | Bank (130000*0.90 | 1,17,000.00 | ||||||||
| Share application | 1,17,000.00 | |||||||||
| (Being share application money received on 130000 share @ $ 0.90 per share) | ||||||||||
| 05-Mar | Share application (130000 shares *$0.90) | 1,17,000.00 | ||||||||
| Share capital | 1,17,000.00 | |||||||||
| (Being share application money on 130000 shares transferred to share capital account) | ||||||||||
| 23-Apr | Share issue expense | 5,000.00 | ||||||||
| Underwriting commission | 15,000.00 | |||||||||
| Bank | 20,000.00 | |||||||||
| (Being under writing commission paid and share issue cost paid) | ||||||||||
| 23-Apr | Bank (20000*(0.90+0.50) | 28,000.00 | ||||||||
| Share application | 28,000.00 | |||||||||
| (Being share application money and allotment money received on 20000 shares from underwriters) | ||||||||||
| 23-Apr | Share application (20000 shares *$0.90) | 18,000.00 | ||||||||
| Share capital | 18,000.00 | |||||||||
| (Being share application money on 20000 shares transferred to share capital account) | ||||||||||
| 23-Apr | Bank | 2,25,000.00 | ||||||||
| Share capital | 2,25,000.00 | |||||||||
| (Being share application money on 150000 shares transferred to share capital account) | ||||||||||
| 10-May | Share Allotment | 75,000.00 | ||||||||
| Share capital | 75,000.00 | |||||||||
| (Being share allotment money due on 150000 shares) | ||||||||||
| 10-May | Bank | 65,000.00 | ||||||||
| Share application (20000*0.50) | 10,000.00 | |||||||||
| Share Allotment | 75,000.00 | |||||||||
| (Being allotment money received on 130000 shares and excess received on application adjusted on 20000 shares) | ||||||||||
| 20-Dec | Final Call (1500000 shares *$1) | 90,000.00 | ||||||||
| Share capital | 90,000.00 | |||||||||
| (Being final call due on 150000 share @ $0.60 per share) | ||||||||||
| 20-Dec | Bank (140000 shares * $0.60) | 84,000.00 | ||||||||
| Calls in arrear | 6,000.00 | |||||||||
| Final Call | 90,000.00 | |||||||||
| (Being final call received on 140000 shares and remained in arrears on 10000 shares | ||||||||||
| 25-Jan | Share capital (10000 shares @ 1.40) | 14,000.00 | ||||||||
| Share forfeited | 14,000.00 | |||||||||
| (Being 10000 shares forfeited) | ||||||||||
| Scenario 6 | ||||||||||
| 08-Feb | Redeemable Preference Share Capital | 4,00,000.00 | ||||||||
| Preference shareholders | 4,00,000.00 | |||||||||
| (Being amount of preference share capital transferred to preference share holder account) | ||||||||||
| 08-Feb | Bank | 2,00,000.00 | ||||||||
| Share capital-ordinary share-A | 2,00,000.00 | |||||||||
| (Being ordinary shares issued) | ||||||||||
| 08-Feb | Retained earnings | 2,00,000.00 | ||||||||
| Capital redemption reserve | 2,00,000.00 | |||||||||
| (Being remaining nominal amount (400000-200000)= 200000 transferred to capital redemption reserve) | ||||||||||
| 08-Feb | Preference shareholders | 4,00,000.00 | ||||||||
| Bank | 4,00,000.00 | |||||||||
| (Being amount paid to the preference share holders) | ||||||||||
| Scenario 7 | ||||||||||
| 01-Mar | Bank (44800*0.80) | 35,840.00 | ||||||||
| Share option | 35,840.00 | |||||||||
| (Being 44800 options issued to shareholders and cash received) | ||||||||||
| No of options = 320000/10*2 = 64000 | ||||||||||
| Options taken up = 64000*70% = 44800 | ||||||||||
| 01-Apr | Bank (80640*3) | 2,41,920.00 | ||||||||
| Share capital | 2,41,920.00 | |||||||||
| (Being 80640 shares issued at $3 per share) | ||||||||||
| 01-Apr | Share option | 35,840.00 | ||||||||
| Share capital | 32,256.00 | |||||||||
| Lapsed Options Reserve | 3,584.00 | |||||||||
| Options lapsed = 44800- (80640/2) = 4480 | ||||||||||
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