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Question 49 Chapter 8 of +2-Part-1
49. (Prorata Allotment/Forfeiture/Reissue)XYZ Limited has been registered with unauthorized capital of Rs. 2,00,000 dividend into 2,000 shares of Rs. 100 each of which, 1,000shares were offered for public subscription at a premium of Rs. 5 per share, payable as under:
on Application Rs. 10
on Allotment Rs.25 (including premium)
on First call Rs. 40
on Final call Rs. 30
Applications were received for 1,800 shares, of which applications for 300 shares were rejected outright; the rest of the applications were allotted 1,000 shares on pro-rata basis Excess application money was transferred to allotment.
All the monies were duly received except from Sundar, holder of 100 shares, pay allotment and first call money. His shares were later forfeited, and re-issued who failed to Shyam Rs. 60 per share Rs. 70 paid up. Final Call has not been made.
Pass necessary Cash Book and Journal entries in the books of K Limited.
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| A) | Share Application A/c | Dr. | 15,000 | ||
| To Share capital A/c | 10,000 | ||||
| To Share allotment A/c | 5,000 | ||||
| (Being allotment made ) | |||||
| B) | Share allotment A/c | Dr. | 25,000 | ||
| To Share capital A/c | 20,000 | ||||
| To Secruity premium A/c | 5,000 | ||||
| (Being amount due on allotment ) | |||||
| C) | Calls in arrears A/c | Dr. | 2,000 | ||
| To Share allotment A/c | 2,000 | ||||
| (Being amount not received on allotment) | |||||
| D) | Share first Call A/c | Dr. | 40,000 | ||
| To Share capital A/c | 40,000 | ||||
| (Being amount due on first call) | |||||
| E) | Call in arrears | Dr. | 4,000 | ||
| To Share First call A/c | 4,000 | ||||
| (Being first call not received ) | |||||
| F) | Share capital A/c | Dr. | 7,000 | ||
| Secruity premium A/c | Dr. | 1500 | |||
| To Share Forfeited A/c | 1,500 | ||||
| To Calls in Arrears A/c | 6,000 | ||||
| (Being first call not received ) | |||||
| G) | Share Fortified A/c | Dr. | 1,000 | ||
| To share Capital A/c | 1,000 | ||||
| (Being fortified ) | |||||
| H) | Share Fortified A/c | Dr. | 500 | ||
| To Capital Reserve A/c | 500 | ||||
| (Being share fortified transferred ) | |||||
| Particulars | Rs. | Particulars | Rs. |
|---|---|---|---|
| To Share Application A/c | 18,000 | By Share Application A/c | 3,000 |
| To Share Allotment A/c | 18,000 | By Balance c/d | 75,000 |
| To Share First call A/c | 36,000 | ||
| To Share Capital A/c | 6,000 | ||
| 78,000 | 78,000 |
Amount not received on allotment from Sunder
| Amount Due on allotment (100 X 25) | 2,500 | |
| Less : Amount received in excess on app. | ||
| (150 X 10) – (100X10) | 500 | |
| Not received | 2,000 | |
| Net amount received on allotment | ||
| Total amount due | ||
| Less : Retained on application | 5,000 | |
| Less : not received | 2,000 | 7,000 |
| Net amount received on allotment | 18,000 |
It all about Question 49 Chapter 8 of +2-Part-1, If you have any problem please comment below.
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Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 49 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication +2 Part 1.
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