Question no 71 Chapter 1 - UNIMAX Class 12 Part 2 - 2021

Question No  71 Chapter 1 - UNIMAX  Class 12 Part 2 - 2021

A company issued for public subscription 50,000 equity shares of ₹ 20 each at a premium of ₹ 4 per share, payable as under:

On application	₹ 4 per share
On allotment	₹ 10 per share (including premium)
On first & final call	₹ 10 per share

Application were received for 75,000 equity shares. The shares were allotted pro-rata to application of 60,000 shares, the remaining applications being rejected. Money overpaid on allotment was utilized towards the sum due on allotment.
‘A’ to whom 2,000 shares were allotted failed to pay the allotment money and the call money ‘B’ who was allotted 2,500 shares failed to pay the call money. These shares were subsequently forfeited after the first and final call was mode. The shares forfeited from ‘B’ were allotted to ‘X’ at ₹ 10 per shares fully paid up. Of the shares forfeited from ‘A’ 1,500 shares were reissued to ‘Y’ at ₹ 22 per share.
Pass necessary journal entries to record the above transactions in the books of the company and show the working notes clearly.

The solution of Question 71 Chapter 1 of +2 Part-2: -

Journal

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		3,00,000
	To share application A/c				3,00,000
	(Being share application money received on 75,000 shares @ ₹ 4 each)
	Share application A/c	Dr.		3,00,000
	To share capital A/c				2,00,000
	To share allotment A/c				40,000
	To bank A/c				60,000
	(Being share application A/c transferred to share capital A/c & balance refunded)
	Shares allotment A/c	Dr.		5,00,000
	To shares capital A/c				3,00,000
	To securities premium A/c				2,00,000
	(Being share allotment money due on 50,000 shares @ 10 each including premium ₹ 4 each)
	Bank A/c	Dr.		4,41,600
	To shares allotment A/c				4,41,600
	(Being allotment money received except on 2000 shares)
	Share first call A/c	Dr.		5,00,000
	To shares capital A/c				5,00,000
	(Being first & final call due on 50,000 shares @ ₹ 10 each including premium ₹ 4 each)
	Bank A/c	Dr.		4,55,000
	To Share first & final call A/c				4,55,000
	(Being first & final call money received exception of 4500 share @ ₹ 10 each)
	Share capital A/c	Dr.		40,000
	Securities premium reserve A/c	Dr.		8,000
	To Share allotment A/c				18,400
	To Share first & final call A/c				20,000
	To Share forfeited A/c				9,600
	(Being 2000 shares forfeited due to non-payment of allotment and calls money)
A.	Share capital A/c	Dr.		50,000
	To Share first & final call A/c				25,000
	To Share forfeited A/c				25,000
	(Being 2500 shares forfeited for non-payment of final call)
	Bank A/c	Dr.		45,000
	Share forfeited A/c	Dr.		5,000
	To Share capital A/c				50,000
	(Being 2500 share forfeited were reissued at ₹ 18 each fully paid up)
	Bank A/c	Dr.		33,000
	To Share capital A/c				30,000
	To Securities premium A/c				3,000
	(Being 1500 shares reissued to Y @ ₹ 22 per share)
	Share forfeited A/c	Dr.		27,200
	To capital reserve A/c				27,200
	(Being balance of share forfeited a/c transferred to capital reserve A/c)

Working Note:

	Shares applied	Shares allotted
Lot 1	27,200	Nil
Lot 2	60,000	50,000
	75,000	50,000

1 Table showing adjustment of excess amount received on application.

	Lot 1	Lot 2	total
No. of shares applied	15,000	60,000	75,000
Less: no. of shares allotted	Nil	50,000	50,000
Over subscription	15,000	10,000	25,000
	₹	₹	₹
Excess amount received on application @ ₹ 4	60,000	40,000	300000
Less: amount adjusted on allotment	Nil	40,000	40,000
Refunded to be made	60,000	Nil	60000

2 Calculation of unpaid amount on allotment on 2000 shares held by A.

No. of shares applied by A 2400 shares (2000*6/5)
	₹
Amount received on application @ ₹ 4 (2400*4)	9600
Less: actual application amount on 2000 shares allotted to A (2000*4)	8000
Amount to be adjusted on allotment	1600
	₹
Amount due on allotment from A (2000*10)	20,000
Less: amount already received now to be adjusted	1600
Unpaid amount on 100 shares of Sunder on allotment	18,400

3 Net Amount received on allotment

	₹
Total amount due on allotment (50,000 share* ₹10)	5,00,000
Less: amount already adjusted an allotment	40,000
	4,60,000
Less: unpaid amount on Sunder's shares	18,400
Net amount received on allotment	4,41,600

4 Calculation of amount to be transferred to Capital Reserve

	₹
Amount forfeited on 2500 shares of B	25,000
Less: Discount on reissue (2500*2)	5,000
	20,000
	₹
	9600
Amount forfeited on 2000 shares of A on 1500 shares amount forfeited	7200
Less discount on reissued of shares	Nil
	7200
Net amount to be transferred to capital reserve (20,000+7,200)	27,200

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Usha Publication - Accountancy PSEB (Class 12) - Volume I - Solution

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I (Introduction)
• Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
• Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
• Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
• Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
• Chapter No. 8 – Company Accounts (Share Capital)
• Chapter No. 9 – Company Accounts (Issue of Debentures)
• Chapter No. 10 – Company Accounts (Redemption of Debentures)

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• Chapter No. 2 – Financial Statement Analysis
• Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size  
• Chapter No. 4 – Ratio Analysis
• Chapter No. 5 – Cash Flow Statement

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