CA FOUNDATION W § “CHANKYA NTL J Issue of Bonus Shares Right Issue Cd By- CA Rishabh RofiraLa dg —_— be UC cd To Foy paid Shares Se a CMS} Coy Tn G. decide to issue Bonus in Pe Oe CL) CeO iy Poa CCE v Ae eas 6 aa SN ne To) TA a ER a isons SR) Converting partly patd Maeda (a Coch called up 27, company CSE hea Converting party paid to urd oatd SP ON ae Koko) SE SNC)Pee aes LO er oi en ee VW CE re ee ne od et Td ae Romas Issue an alia Se Dols asin Ree eevee ra ata hasta Converting partly PAC ie id Fi fang paid Capital SLT nN Set) eta) ows ch [Sy a eerie a ee Sear iS i or pa ed ry i" + PNK Psy ROTO aS SSS bee OS aye OSE CURA Doan OS a AiBOOUC CCS Pees po Conca tty on converting partis poi SBC mec e ) car A . OTS na ed Lec i ea DS] v * NO eT a a G G) Free Resewe WA a VWfam MC TULA Cis worth E5L by issue of ES oe WV Beach at EF 2S/chor. fated ua COMERS eom = having. LLCS fa) Soe: Ua a pS) Sar Ril OS de sta Pot ES lead aye) ee ee) eS RE ee eee Td To vendar Alc bhi} ay Eq; Shr. capital Aic. Lieu) I aa EXC Revay ie Sas aC) Eq, Shr. capita) Ate 2.00,008 __ L 200m 88x 10) DR recto ane)We Ea reel Raa a Sina Chal Ree heed ae CS Re neRand W cooverting partly poid Ee ad SEC oa eu nO) ae CNA! fa CL ng AS ao he c— Security premium Alc or. = i o ee ene @ (i ee Cs CO al LON aU Cae eg Re CCS arte BNR CRA ad NO a ad AOS ais) CN} BaWe Se ee ae Ra a ST Fy a ea cor) Rio NS Sy ACS Sal oe Frey make Dr aS Ce MC oe ae) Se Ca)Mustrati Page No. 23 ICAI Module LWA Q. Following items appear in the trial balance of Bharat Ltd. (a listed company) as on 31% March, 2022: erty z SIUC nod cry 4,00,000 |* © | Capital Redemption Reserve 55,000 i 8 Securities Premium (collected in cash) ELVA} entre cia @®)| Surplus i.e. credit balance of Profit and Loss Account Att) PUT mee ROR SSR Okt HS MSC ea Ko rate of 1 share for every 4 shares held and for this purpose, it decided that Prom el eM CUT ko Ck Re Cea pele) eantes (ooVv Cees CL ne Ri a EO oe ce cae ine Ee aa a) Dr. 15:900 fom a ad Rn a oY “ RS eae oR US n aka MTL) TY LTO = RU a Ml Leelee TO Equity RS 1,00,000Eee oles (oe mene Olay ae at ue aoc 124 ICAI Module \V/7 Sead PMB Re mV ee ut Rel me eR RI RMSE em fi - ee co SUE ee OCR eee cies Dg share. R bonus of % 1,25,000 declared out of General Reserve to be applied in making the existing shares fully paid up. ler aed Nac) amd Na Pes up capital of % _50,00,000 Oe emis Ae ae ae OU COOL CaaS SUS resolved to capitalize % 5,00,000 out of General Reserve by issuing 50,000 fully paid bonus shares of % 10 each, each shareholder to get one such Ree ig ag OS IE e OCR me Pitre SI SU REO LNB A) SSRN ES = ES.00.00 SanCOE ce OT) Wid Be ae I ss) SSS a Toe) LS ate Ley (eet Tye) AOS Rese cel TY owen) nA DeLay aE ote SOU ia ae Totty OO SS OL SmI AT SCRE LER aT25 ICAI Module Ilustration ~3 - Page N Vv Q Following notes pertain to the Balance Sheet of Solid Ltd. as at 31st March, yy ahd z estes Pr) ee UE aso) SURO ae ERS Cero 11,00,000 C | Issued and Subscribed capital: CRU ete we ng el TRI Se mI een eat ran) PRON aa E nC RSs @ General reserve UROL Pee ena 35,000 Securities premium (collected in cash) POU) [Ghee uC Pee ood PAA RY Be 12% Debentures @ % 100 each EAAMlustrati Page No. 25 ICAI Module W CeCe nee Coe Re OR eee Re) Ce ECan en ae oe Ae ee ce the company decided to capitalise its reserves by way of bonus at the rate of Ce ORAS ACUMEN OCR Ome BAU eRe ee ee PO CCR hs ek RU er eee Ce Ue CoN oe PTS SESS RUE ane Le Se eee eee Le Fe area Me mstecaeiar Com aren a COR eRe CCS Tc Ea ‘Shor iy ra See TY EI) Son iio) BSa Olloai22 Equity share final cail Ale 180.000 To Equity shore capital Alc \120,000 204122, Bank Alc ex To Equity Shar finol can Alc Steurity premium Ate &. neral Reserve AIC Or. Profit ana Loss Ate. De To Bomvs to Equity, Shore holder Alc Bonus to Equity Shonboider AC Dy. To Eq, Shore Capital AC.ston) Vf PrP ome heer eee Ce ame Pee em oy Particulars Occwe a bay Equity and Liabilities 1 BIEL e eee | |a |Share capital — Supscribed 12,05,000 aCe RTE ITS 2 SEER) r Ney eettecota ell eta) PMR eeu ake 3 5,00,000 a ee Or ES a SORT SDE mR ON) ND Co ee STONY SES) POHTLURSAK = [/60,000 1.85:900 PETS) eI Ee Nao Recht ea}ston) sv Od 1 | Share Capital Poet east eere:) Le EWeifele hire mse nemo Leg SB PA aoe eee Oa) se) 1,12,500 Equity shares of t 10 each 11,25,000 r . f 5 , 8,000 12% Preference shares of t 10 each 80,000 1,12,500 Equity shares of % 10 each, fully paid (Out of above, 22,500 equity shares @ 10 each were issued by way of bonus) (A) 11,25,000 odes 12,05,000Illustration rage No. 11.128 ICAI Module Wi Q Following notes pertain to the Balance Sheet of Preet Ltd. as at 31% March, PA iB Serena eee cs Pree eee Cron PEO PR eon sre ty + BERTON _— ieee STITT Peete en Rees ee eerie) B oa 12,000 12% Preference shares of & 10 each fully paid RIT NEE gsr cer ity ; NU Teo Mn Cosa tt rents Tn i eee eI ere aon sad eo Securities premium (collected in cash) 37,500 eyed eects 3,00,000Vv On 1% April, 2022, the Company has made final call @ % 2 each on 1,35,000 equity shares. The call money was received by 20" April, 2022. Thereafter, the company decided to capitalise its reserves by way of bonus at the rate of CLS EO oe a OU Sn Lo on Show necessary journal entries in the books of the company and prepare the extract of the balance sheet as on 30" April, 2022 after bonus issue. oo ee) RC ea LO) 7 Cy NaC roe) or) Le CL feng Ree ear eerany DS ELC) meEELCAYston) sv Extract of Balance Sheet as at 30" April, 2022 (after bonus issue) z Share Capital PU ecm tel SEB PA eos Ona) SRST 1,68,750 Equity shares of %10 each (refer working Tad) 16,87,500 SSE RT euler tele 12,000 12% Preference shares of 10 each, fully paid 1,20,000 1,68,750 Equity shares of %10 each, fully paid SUVA) (Out of above, 33,750 equity shares @ %10 each RRS SIM AL Ae LLVv Extract of Balance Sheet as at 30" April, 2022 (after bonus issue) z Toa eR yyy Teper) EVA) Less: Utilised for bonus issue nite Capital Redemption Reserve CTRL} Less: Utilised for bonus issue (60,000) NIL roa eta 1,80,000 SAU eSB em eet NIL. aie CR nese. eeetia 3,00,000 MUM Olm eM SIUCS (60,000)| _2,40,000LO ae WV Cn nay —_— SS. Ex- Right value SACD A a A Zea SS) ry Volwe of Ex-Right eevee oc Right Right] Ri Uae i [Se Loe a ee ‘ si ‘em A i ESNTy DS eRe d Dane No.of Shave a iN bu Issue, Da aaa Rene ‘ese Es35 ICAI Module W ee a ee SURO ee ec Rtn Q Me Ot Re Oa es cee SOCCER Ce Reo CeO OR RUS er aCe Fee ecko RS eed ada) ee ad pr - me ; Sa LS ea ia i al fi dl a ede Lis Price es SCNT, Se 7 ed as at Noha 3 aa.)cuter) sv OM Ween mek a eR OR nen C een ee em ANCL e elite Tne oo eT ERO ee MRC LNA fara CaS le Clad os Bieler SS cae The FS nee area ee 240 erent Ou ero een Of Perr (eto OAR ORC of a right. What should be the ex-right market price of a share? Ee ae ct = 240© 200 Suu ° a an) aceon: ania! ad or ca SACRE ONY rc)sv Q Following notes pertain to the Balance Sheet of Mars Company Limited as at Road UEP z Authorised capital: 50,000 12% Preference shares of t 10 each AUR 5,00,000 Equity shares of ¥ 10 each BTUAIOAUHLH) 55,00,000 Issued and Subscribed capital: -|50,000 12% Preference shares of % 10 each fully paid EAILUAUHL 4,00,000 Equity shares of 10 each, 8 paid up 32,00,000estion Vv As OTA See gL Ceri oee Boao BRAY Capital Redemption Reserve PRY Securities premium (collected in cash) 2,75,000 Revaluation Reserve SRR) Pai e CMR ecg 16,00,000si OLB eae OO CUNO e Ce eit ee) Ce wae eA Let) equity shares. The call money was received by 25" April, 2022. Thereafter, on 1% May 2022 the company decided to capitalise its reserves by way of POS eee Ce OMAR AC e Cae oe cece Cre OU SE ri Re ess sa a al ad On 1 June 2022, the Company issued Rights shares at the rate of two shares for every five shares held on that date at issue price of < 12 per share. All the rights Bees OM Mee CIR Cee ed Aen UUUTECE7 > oN es ea Show necessary journal entries in the books of the company for bonus PSUR tee toeCs ONOrIZ2 —Eq-shote final call Alc Dr. B/00,000 TO Equity shaw capitol Alc £100,000 25\0N22 Bank Aic. 8,00,000 To Eq; Share finel cott Aic Orlosi22 Capitol Redemption Reserye Alc OF. Security, Premium Aic Or. enue) Revave Ale oO. Profit ang loss Ac a To Bonus to Equity Showholder Alccc Ronus +0 Equity shorendver Aic 10100,090 To Eq; shove “pita Alc 20106122 Bank Alc To Eq; shore capitol Alc '20,00,000 Te Sccarity, premium Alc 4,098,000Bed Ce ed ii aiid Ona Seen aT) Ee ay 3 ‘ Sy VW