BBA – Accounting For Managers (Semester 3) | (Case Study “Lucky Ltd.)

By | 15th November 2019

Here is a case study on “Lucky Ltd. company” from Amity University Online of semester 3, Maybe it can come in some other colleges too. Just take the solution of this case study below. Please note that we have an incomplete solution for this case study. So, Let’s decode some headings – BBA Accounting For Managers, Lucky Ltd. Case Study, Case Study Lucky Ltd. Company.




Check All NCERT Solutions For Class 12 Of All Subjects


Case Study – Case Study Lucky Ltd. Company

“Lucky Ltd. invited applications for 50,000 equity shares of Rs. 10 each, payable as Rs. 2 on the application, Rs. 3 on the allotment and the balance on the first and final call. Applications were received for 1,50,000 shares and the share were allotted on a pro-rata basis, The excess application money was to be adjusted against allotment only. Maya, a holder who had applied for 1,500 shares, failed to pay the call money and her share was forfeited and was reissued @ 8 per share as fully paid.”


Q. 1 What amount of bank received by Lucky Ltd.?
According to Lucky Ltd.,
Lucky Ltd. invited applications for 50,000 equity shares of Rs. 10 each, payable as Rs. 2 on the application, Rs. 3 on the allotment and the balance on the first and final call. Applications were received for 1,50,000 shares and the share were allotted on a pro-rata basis, The excess application money was to be adjusted against allotment only.
To, share application A/C = ₹3,00,000

Hence, [150000 x 2] = Bank A/c Dr. = ₹3,00,000






Q. 2 What amount of Share capital will be shown in the balance sheet of Lucky Ltd.?
Around 7,500 will be shown in the balance sheet of Lucky Limited.
To, share forfeiture A/C = 7500
To, call in arrears A/C = ₹7500 [forfeiture of share]

Q. 3 What amount will be transferred to the capital reserve account.
According to Lucky Ltd.
Bank A/c Dr. = ₹3,00,000
To, share application A/C = ₹3,00,000
Hence, [150000 x 2]
[being application money received @ Rs. 2 per each]
Share application A/C Dr. = ₹300000
To, share capital A/C = ₹100000
To, share allotment A/C = ₹150000
To, bank A/C = ₹50000 [application money adjusted]
share allotment Dr. = ₹150000
To, share capital A/C = ₹150000 [allotment money received]
Share first & final call A/C Dr. = 250000
To, share capital A/C = 250000 [due on first & final call]
To bank A/C Dr. = 242000
call in arrears A/C Dr. = 7500
To, share first & final call A/C = 250000 [first & final call money received]
share capital A/C Dr. = 150000
To, share forfeiture A/C = 7500
To, call in arrears A/C = ₹7500 [forfeiture of share]
bank A/C Dr. = ₹12000





share forfeited A/C Dr. 3000
To, share capital A/c = 15000 [1500 share reissued]
share forfeited A/C = 4500
To, capital reserved A/C = 4500
The being amount transferred from share forfeited to capital reserved.
Therefore, ₹4500 will be transferred to the capital reserve account.


 

Case Study Lucky Ltd. Company, What amount will be transferred to the capital reserve account? , Case Study Lucky Ltd. Company , Lucky Ltd. Case Study ,  BBA Accounting For Managers




Leave a Reply

Your email address will not be published. Required fields are marked *