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Question no 62 Chapter 1- Class 12 Part 2 Unimax
X Ltd. invited applications for 2,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share payable as to ₹ 2 on application, ₹ 5 on allotment including premium, ₹ 2 first call and ₹ 3 on final call.
Applications were received for 3,00,000 shares. Applications for 60,000 shares were rejected and pro-rata allotment was made to the remaining application. Ram who applied for 9,600 shares, failed to pay allotment and two calls and Shyam, the holder of 12,000 shares, failed to pay two calls. These shares were forfeited. Subsequently, all these shares were reissued at ₹ 8 per share as fully paid up. Pass necessary journal entries in the books of X ltd.
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| Bank A/c | Dr. | 6,00,000 | |||
| To share application A/c | 6,00,000 | ||||
| (Being application money received on 3,00,000 shares @ ₹ 2 per share) | |||||
| Share application A/c | Dr. | 6,00,000 | |||
| To share capital A/c | 4,00,000 | ||||
| To share allotment A/c | 80,000 | ||||
| To bank A/c | 1,20,000 | ||||
| (Being share application a/c closed after adjusting excess amount on allotment and balance refunded) | |||||
| Shares allotment A/c | Dr. | 10,00,000 | |||
| To shares capital A/c | 6,00,000 | ||||
| To securities premium A/c | 4,00,000 | ||||
| (Being allotment money due on 2,00,000 equity shares of ₹ 5 each including with premium amount) | |||||
| Bank A/c | Dr. | 8,83,200 | |||
| To shares allotment A/c | 8,83,200 | ||||
| (Being allotment money received with exception of 3200 shares) | |||||
| Share first call A/c | Dr. | 4,00,000 | |||
| To shares capital A/c | 4,00,000 | ||||
| (Being first call money due on 2,00,000 shares @ ₹ 2 each) | |||||
| Bank A/c | Dr. | 3,60,000 | |||
| To share first call A/c | 3,60,000 | ||||
| (Being share first call money received with the exception of 20000 shares) | |||||
| Share 2nd call A/c | Dr. | 6,00,000 | |||
| To share capital A/c | 6,00,000 | ||||
| (Being shares 2nd call due on 2,00,000 equity shares) | |||||
| Bank A/c | Dr. | 5,40,000 | |||
| To share 2nd call A/c | 5,40,000 | ||||
| (Being shares 2nd call money received except on 20,000 shares) | |||||
| Share capital A/c | Dr. | 2,00,000 | |||
| Securities premium A/c | Dr. | 16,000 | |||
| To share first call A/c | 60,000 | ||||
| To share forfeited A/c | 79,200 | ||||
| To share allotment A/c | 36,800 | ||||
| (Being 20,000 shares forfeited for non-payment of allotment and call money) | |||||
| Bank A/c | Dr. | 1,60,000 | |||
| Share forfeited A/c | Dr. | 40,000 | |||
| To share capital A/c | 2,00,000 | ||||
| (Being 20,000 share received @ ₹ 8 per share) | |||||
| Share forfeited A/c | Dr. | 39,200 | |||
| To capital reserve A/c | 39,200 | ||||
| (Being balance of share forfeited a/c transferred to capital reserve A/c) | |||||
Working Note:
| Shares applied | Shares allotted | |
| Lot 1 | 60,000 | Nil |
| Lot 2 | 2,40,000 | 2,00,000 |
| 3,00,000 | 2,00,000 |
1 Table showing adjustment of excess amount received on application.
| Lot 1 | Lot 2 | total | |
| No. of shares applied | 60,000 | 2,40,000 | 3,00,000 |
| Less: no. of shares allotted | nil | 2,00,000 | 2,00,000 |
| Over subscription | 60,000 | 40,000 | 1,00,000 |
| ₹ | ₹ | ₹ | |
| Excess amount received on application @ ₹ 2 each | 1,20,000 | 80,000 | 2,00,000 |
| Less: amount adjusted on allotment | nil | 80,000 | 80,000 |
| Refunded to be made | 1,20,000 | nil | 1,20,000 |
2 Calculation of unpaid amount on allotment on 9600 shares held by Ram
| No. of shares applied by Ram | 9600shares |
| ₹ | |
| Amount received on application @ ₹ 2 (9600*2) | 19,200 |
| No. of shares allotted to Ram 8000 shares (9600*5/6) | |
| Less: actual application amount on 8000 shares allotted to Ram (8000*10) | 8000 |
| Amount to be adjusted on allotment | 3200 |
| ₹ | |
| Amount due on allotment from Ram (8000*5) | 40,000 |
| Less: amount already received now to be adjusted | 3200 |
| Unpaid amount on 8000 shares of Ram on allotment | 36,800 |
3 Net Amount received on allotment
| ₹ | |
| Total amount due on allotment (2,00,000 *5) | 10,00,000 |
| Less: amount already adjusted an allotment | 80,000 |
| 9,20,000 | |
| Less: unpaid amount received on allotment | 36,800 |
| Net amount received on allotment | 8,83,200 |
4 Calculation of amount to be transferred to Capital Reserve
| ₹ | |
| Total amount forfeited | 79,200 |
| Less: loss on reissued of shares | 40,000 |
| Amount transferred to capital reserve | 39,200 |
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 no 62 Chapter 1- Class 12 Part 2 Unimax", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Unimax Accountancy Class 12 Part 2 - 2023.
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