Question 80 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 80 Chapter 8 of +2-A

80. Jeevan Dhara Ltd. invited applications for issuing 1,20,000 equity shares of ₹ 10 each at a premium of   ₹ 2 per share. The amount was payable as follows:

On application	——	₹ 2 per share,
On allotment	——	₹ 5 per share(including premium),
On the first and final call	——	Balance.

Applications for 1,50,000  shares were received. Shares were allotted to all the applicants on a pro-rata basis. Excess money received on applications was adjusted towards sums due on allotment. All calls were made. Manu who had applied for 3,000 shares failed to pay the amount due on the allotment and first and final call Madhur who was allotted 2,400 shares failed to pay the first and final call. Shares of both Manu and Madhur were forfeited. The forfeited shares were reissued at  ₹ 9 per share as fully paid-up.Pass necessary journal entries for the above transactions in the books of Jeevan Dhara Ltd. 

The solution of Question 80 Chapter 8 of +2-A: - 

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		3,00,000
	To share application A/c				3,00,000
	(Being the application money received )
	Share application A/c	Dr		3,00,000
	To Share capital A/c				2,40,000
	To Share allotment A/c				60,000
	(Being application money transferred to equity share capital )
	Share allotment A/c	Dr		6,00,000
	To Share capital A/c				3,60,000
	To Securities premium A/c				2,40,000
	(Being the allotment money due )
	Bank A/c	Dr		5,29,200
	To Share allotment A/c				5,29,200
	(Being application money transferred to equity share capital )
	Share first and final call A/c	Dr		6,00,000
	To Share capital A/c				6,00,000
	(Being share forfeiture)
	Bank A/c	Dr		5,76,000
	To Share first and final call A/c				5,76,000
	(Being first call money received )
	Equity share capital A/c	Dr		48,000
	Securities premium reserve A/c	Dr		4,800
	To Equity share forfeiture A/c				18,000
	To Share allotement A/c				10,800
	To Share first and final call A/c				24,000
	(Being the allotment money due )
	Bank A/c	Dr		43,200
	Equity share forfeiture A/c	Dr		4,800
	To share capital A/c				48,000
	(Being forfeited share reissue )
	Share forfeiture A/c	Dr		13,200
	To capital Reserve A/c				13,200
	(Being the gain on reissue transferred to capital reserve )

Wroking Note:-

Calculation of amount not received on Allotment and First and Final Call money
Shares applied by Sonu = Rs 1,200

Shares allotted to Manu =	1,20,000	*3,000 = 2,400shares
	1,50,000

Amount received on 3,000 shares of Rs.2 each ( 3,000 × 2)= Rs.6,000
Amount transferred to Share Capital Account (2,400 × Rs.2) = Rs.4,800
Excess application money received = Rs.1,200
Allotment money due @ Rs.5 each (7,200 + 4,800) = Rs.12,000
Not received on allotment (7,200 - 1,200) = Rs.6,000
Securities Premium not received = Rs.4,800
First and final call money not received = (2,400 × Rs.5) = Rs.12,000
Calculation of amount not received from Madhur
First and final call money not received = (2,400 × Rs.5)= Rs.12,000  

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Also, Check out the solved question of previous Chapters: -

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

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