Question no 57 Chapter 1- Class 12 Part 2 Unimax

Question no 57 Chapter 1- Class 12 Part 2 Unimax

A Limited invited application for 15,000 equity shares of ₹ 10 each payable as follows:

On application	₹ 2 per share
On allotment	₹ 3 per share
On first call	₹ 4 per share
On final call	₹ 1 per share

All the shares have been subscribed and paid for except the following:
(1) X, who held 300 shares, failed to pay the money on allotment and calls.
(2) Y, to whom 200 shares have been allotted failed to pay the money due on first call and final call.
(3) Z to whom 500 shares have been allotted, has not paid the amount due on final call.
The shares of X, Y and Z are forfeited and are subsequently reissued for cash as fully paid at a discount of 10%. Give journal entries to record these transactions in the books of A Ltd.

The solution of Question no 57 Chapter 1- Class 12 Part 2 Unimax: -

Journal

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		30,000
	To Equity Shares Application A/c				30,000
	(Being application money received on 15000 equity shares @ ₹ 2 per shares)
	Equity shares Application A/c	Dr.		30,000
	To Equity share capital A/c				30,000
	(Being application money transferred to shares capital a/c)
	Equity share Allotment A/c	Dr.		45,000
	To Equity shares capital A/c				45,000
	(Being allotment money due on 15,000 equity @ ₹ 3 per shares)
	Bank A/c	Dr.		44,100
	To Equity Share Allotment A/c				44,100
	(Being allotment money received on 14700equity shares @ ₹ 3 PR share exception 300 share)
	Equity shares first call A/c	Dr.		60,000
	To equity share capital A/c				60,000
	(Being first call due on 15,000 shares @ ₹ 4 per share)
	Bank A/c	Dr.		58,000
	To equity shares first call A/c				58,000
	(Being first call received on 14500 equity shares @ ₹ 10 per share exception 500 equity shares)
	Equity shares final call A/c	Dr.		15,000
	To equity shares capital A/c				15,000
	(Being final call money due on 15,000 equity shares @ ₹ 1 per share)
	Bank A/c	Dr.		14,000
	To equity shares final call A/c				14,000
	(Being final call money received on 14,000 shares @ ₹ 1 per share except on 1000 equity shares)
Shares holder X	Equity share capital A/c	Dr.		3000
	To shares forfeited A/c				600
	To equity share allotment A/c				900
	To equity share first call A/c				1,200
	To equity share final call A/c				300
	(Being 300 shares of X shareholder, forfeited due to non-payment of allotment, first call and final call money)
Y	Equity share capital A/c	Dr.		2000
	To Forfeited shares A/c				1,000
	To equity share first call A/c				800
	To equity share final call A/c				200
	(Being 200 shares of Y’s shareholder, forfeited due to non-payment of first call and final call money)
Z	Equity shares capital A/c	Dr.		5,000
	To shares forfeited A/c				4500
	To equity share final call A/c				500
	(Being 500 shares of Z’s shareholder forfeited due to non-payment of final call money)
	Bank A/c	Dr.		9,000
	Share forfeited A/c	Dr.		1,000
	To equity share capital A/c				10,000
	(Being 1,000 forfeited shares reissued at as fully paid at a discount of 10%)
	Shares forfeited A/c	Dr.		5,100
	To capital reserve A/c				5,100
	(Being the profit on 1000 forfeited shares transferred to capital reserve A/c)

Working Note:

	₹
Amount forfeited on 300 shares of Mr. X’s	= 600
Amount forfeited on 200 shares of Mr. Y’s	= 1,000
Amount forfeited on 500 shares of Mr. Z’s	= 4,500
Total amount forfeited on 1,000 shares	= 6,100
	₹
Total amount forfeited on 1,000 shares	= 6,100
Less: discount allowed on reissued share	= 1,000
Balance credited to capital reserve A/c	= 5,100