Name Raghav Thareja

PRN 20010224122
Division B
Batch 2020-2025
 ESOPS Solution
JOURNAL
In the Books of X
2018

31-Mar

31-Mar

2019
31-Mar

31-Mar

2019
1-Oct

2020
31-Mar

31-Mar
 Working Notes

2
 ESOPS Solution
JOURNAL
In the Books of XYZ

Employee Compensation Expense A/c …Dr.

To Employee Stock Option Oustanding A/c
(Being Compensation expense recognised in respect of 6,000 options granted to employee at a disco
of ₹ 90 each amortised over 2.5 years.)

Statement of Profit and Loss A/c …Dr.

To Employee Compensation Expense A/c
( Being Employee compensation expense of the year written off from statement of Profit and Loss)

Employee Compensation Expense A/c …Dr.

To Employee Stock Option Oustanding A/c
(Being Compensation expense recognised in respect of 6,000 options granted to employee at a disco
of ₹ 90 each amortised over 2.5 years.)

Statement of Profit and Loss A/c …Dr.

To Employee Compensation Expense A/c
( Being Employee compensation expense of the year written off from statement of Profit and Loss)

Employee Compensation Expense A/c …Dr.

To Employee Stock Option Oustanding A/c
(Being Compensation expense recognised in respect of 6,000 options granted to employee at a disco
of ₹ 90 each amortised over 2.5 years.)

Statement of Profit and Loss A/c …Dr.

To Employee Compensation Expense A/c
( Being Employee compensation expense of the year written off from statement of Profit and Loss)

Employee Stock Option Oustanding A/c …Dr.

To General Reserve
(Being lapse of all unvested options on the expiry of vesting period transferred to General Reserve.)
 Working Notes

Calculation of Intrinsic value of options

Intrinsic Value = Market price - Exercise Price

= ₹ 120 - ₹ 30
= ₹ 90

Value of Options = 6,000 X (₹ 120 - ₹ 30) = ₹ 5,40,000

Calculation of Employees Compensation Expenses to be written off for Two and a Half year

Ɪ year (2017-18) = ₹ 2,16,000 (for Full Year)

ꞮꞮ year (2018-19) = ₹ 2,16,000 (for Full Year)
ꞮꞮꞮ year (2019-20) = ₹ 1,08,000 (for Half year)
216,000
216,000

216,000
216,000

216,000
216,000

216,000
216,000

108,000
108,000

108,000
108,000

540,000
540,000
 Creditors Outstanding on th

(Ceasing to be M

Date

20th August, 2018

15th October, 2018

14th December 2018

9th March 2019

Total (a)
Number of Shares hel
Maximum Liability on shar
Amount to be paid - lower of
Step 1

Step 2

Step 3
Step 3

Step 4

Step 5
Step 5
nding on the Date of Transfer
Suresh

ing to be Member)

₹ ₹ ₹

— 26,400 12,000

34,400 8,000 —

36,800 2,400 —

48,000 11,200 —

Total (a) 12,000

Shares held Numbers 12,000
ility on shares (b) ₹ 24,000
d - lower of (a) or (b) ₹ 12,000
 Since 'Kumar' transferred his shares on

The amount of ₹ 26,400 is outstanding on 20th Augus

Suresh 's Share = 26,400

33
Rakesh's Share = 26,400
33
Naina's Share = 26,400
33
Aroon's Share = 26,400
33

The amount of ₹ 10,000 further debt incurred between

Rakesh's Share = 8,000

18
Naina's Share = 8,000
 18
Aroon's Share = 8,000
18

The amount of ₹ z2,400 further debt incurred betwee

Naina's Share = 2,400

8
Aroon's Share = 2,400
8

The amount of ₹ 11,200 further debt incurred between

Against Aroon's liability of ₹ 11,200, he can be called up
Aroon's Total liability is ₹ 15,833 but he will be calle
 Solution
Statement of Liability of B List Contributo

Rakesh Naina Aroon

₹ ₹ ₹

8,000 4,000 2,400

4,445 2,222 1,333

— 1,500 900

— — 11,200

12,445 7,722 15,833

8,000 4,000 2,400
16,000 8,000 4,800
12,445 7,722 4,800

Working Notes
d his shares on 12th June 2018 which is far before 1 year of t

on 20th August, 2018 when 'Suresh' ceases to become a me

them, i.e. in the ratio of 12000:800

× 15 =

× 10 =

× 5 =

× 3 =

urred between 20.8.2018 and 15.10.2018 for which Suresh w

held by them, i.e. 8000:40

× 10 =

× 5 =
 × 3 =

curred between 15.10.2018 and 14.12.2018 will be contribut

× 5 =

× 3 =

urred between 14.12.2018 and 9.3.2019 will be borne soley b

an be called upon to pay ₹ 167, the loss of ₹ 11,033 will have
he will be called upon to pay ₹ 4,800 only. The loss of ₹ 11,
 Solution
Liability of B List Contributories

Amount to

Working Notes
8 which is far before 1 year of the date of liquidation i.e. 10th

Suresh' ceases to become a member. So it will be contributed

m, i.e. in the ratio of 12000:8000:4000:2400 or 15:10:5:3

15.10.2018 for which Suresh will not be liable will be contribu

held by them, i.e. 8000:4000:2400 or 10:5:3
nd 14.12.2018 will be contributed by Naina and Aroon in the

d 9.3.2019 will be borne soley by Aroon.

7, the loss of ₹ 11,033 will have to be suffered by the credito
₹ 4,800 only. The loss of ₹ 11,033 will have to be suffered b
available.