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Financial Accounting (MGT401)
Assignment # 2
1) Journal entries to give effect to the above resolution
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Journal &ntries
Rs. Rs.
(1) Debit :Accumulated Profits 100000
Debit: General Reserves 170000
Debit: !are Premium 1"0000
#redit: $onus to s!are!olders Account %&0000

Debit: bonus to s!are!olders Account %&0000
#redit: s!are ca'ital (00000
#redit: !are Premium Account 1&0000
(&) Debit: !are!olders Account ()0000
#redit: !are #a'ital (00000
#redit: !are Premium Account )0000
Debit: ban* Account ()0000
#redit: !are!olders Account ()0000
(() Debit: s!are ca'ital 100000
Debit: !are Premium +Accumulated 'rofit &0000
#redit: #as! account 1&0000
Debit: Accumulated Profits 100000
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#redit: #a'ital Re'urc!ase Reserve 100000
1) 'evise( )alance sheet (&*uit+ ,ortion onl+)
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Mo(el -om,an+ "imite(
'evise( )alance heet
As on .0 June/2010
's0
Authori1e( -a,ital
1000000 ,rdinar- s!ares of Rs. 10 eac! 10000000

2ai( #, ca,ital
1&"000 s!ares of Rs. 10 eac! 1&"0000
'eserves
Accumulated 'rofits (0000
General Reserves &.0000
!are Premium 1.0000
#a'ital Re'urc!ase reserve 100000
/otal 01uit- 1.%0000
2) %ecessar+ 3or4ing sche(ules
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5or4ing che(ules6
5or4ing #1
2umber of bonus s!ares 3ssued 4 7"000 5 (%+10)
47"005%
4 (0000 bonus s!ares
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Amount of bonus s!ares 4 (000051%
4 Rs. %&0000
Amount /ransfer to s!are #a'ital 4 number of bonus s!ares issued 5 2ominal 'rice+s!are
4 (00005 Rs.10
4 Rs.(00000
Amount /ransfer to s!are 'remium account 4 number of bonus s!ares issued 5
'remium+s!are
4(00005Rs.%
4 Rs.1&0000
5or4ing #2
2umber of rig!t s!ares issued4 7"0005(&+")
4 1"0005&
4 (0000 rig!t s!ares
Amount of rig!t s!ares 4 number of rig!t s!ares issued 5 issued 'rice +s!are
4 (0000 5 1&
4 Rs.()0000
Amount transfer to !are #a'ital 4 2umber of rig!t s!ares issued 5 nominal 'rice +s!are
4(00005 Rs.10
4 Rs(0000
Amount /ransfer to !are Premium Account 4 2umber of s!ares issued5 Premium+s!are
4 (00005Rs.&
4 Rs.)0000
5or4ing #.
Amount of s!ares re'urc!ased 4 number of s!ares re'urc!ased5issued 'rice 'er s!are
4 100005 Rs.1&
4 Rs.1&0000
Reduction in Paid u' ca'ital 4 number of s!ares re'urc!ased 5 2ominal 6alue 'er s!are
4 100005 Rs.10
4Rs.100000
Reduction in !are Premium Account 4 2umber of s!ares re'urc!ased5 'remium 'er
s!are
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4 100005 Rs.&
4 Rs.&0000
5or4ing # 4
07isting s!ares 7"000
$onus !ares 3ssued (0000
Rig!t s!ares 3ssued (0000
!ares Purc!ased (10000)
/otal Paid 8' #a'ital 1&"000
Accumulated 'rofits 4( 07isting accumulated 'rofits 9 used for bonus s!ares: used for
t!e 'a-ment of 'remium on re'urc!ased s!ares 9 nominal Amount of re'urc!ased s!ares
transfer to #a'ital Re'urc!ased reserve)
4 Rs.&"0000 9 Rs.100000 9 Rs.&0000 : Rs.100000
4 Rs.(0000
General reserves 4 07isting general reserves 9 used for bonus s!ares
4 Rs. %"0000 9 Rs.170000
4 Rs.&.0000
!are Premium reserve4 e7isting s!are 'remium 9 used for bonus s!ares ; 'remium
received on bonus s!ares ; 'remium received on rig!t s!ares
4 Rs.1"0000 9 Rs.1"0000 ; Rs.1&0000 ;Rrs.)0000
4 Rs.1.0000
#a'ital re'urc!ased reserve 4 2umber of re'urc!ased s!ares 5 2ominal 'rice 'er s!are
4 10000 5 Rs.10
4 Rs.100000
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