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Question no 76 Chapter 1- Class 12 Part 2 Unimax
A Limited Company invites applications for 50,000 equity shares of ₹ 10 each payable as follows:
| On application | ₹ 3 per share |
| On allotment | ₹ 4 per share |
| On first | ₹ 2 per share |
| On final call | Balance |
Application were received for 55,000 shares. Allotments were made on the following basis:
(1) To applicants for 35,000 shares in full.
(2) To applicants for 20,000 shares 15,000 shares.
Excess money paid on application was utilized towards allotment money.
A shareholder who was allotted 1,500 shares out of the group applying for 20,000 shares failed to pay allotment money and money due on calls. These shares were forfeited 1,000 forfeited shares were reissued as fully paid on receipt of ₹ 8 per share.
Show the journal entries in the books of company.
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| Bank A/c | Dr. | 1,65,000 | |||
| To Equity share application A/c | 1,65,000 | ||||
| (Being equity share application money received on 55,000 @ ₹ 3 per share) | |||||
| Equity shares application A/c | Dr. | 1,65,000 | |||
| To Equity shares capital A/c | 1,50,000 | ||||
| To Equity share allotment A/c | 15,000 | ||||
| (Being application money transferred to share capital & transferred to share allotment) | |||||
| Equity share allotment A/c | Dr. | 2,00,000 | |||
| To Equity shares capital A/c | 2,00,000 | ||||
| (Being share allotment money due on 50,000 shares @ ₹ 4 per share) | |||||
| Bank A/c | Dr. | 1,80,500 | |||
| To Equity share allotment A/c | 1,80,500 | ||||
| (Being share allotment money received) | |||||
| Equity share first call A/c | Dr. | 1,00,000 | |||
| To Equity shares capital A/c | 1,00,000 | ||||
| (Being equity share first call money due on 50,000 shares @ ₹ 2 per shares) | |||||
| Bank A/c | Dr. | 97,000 | |||
| To Equity shares first call A/c | 97,000 | ||||
| (Being shares first call money received) | |||||
| Equity share second and final call A/c | Dr. | 50,000 | |||
| To Equity shares capital A/c | 50,000 | ||||
| (Being equity shares final call money due on 50,000 @ ₹ 1 per share) | |||||
| Bank A/c | Dr. | 48,500 | |||
| To Equity share second & final call A/c | 48,500 | ||||
| (Being shares final call money received) | |||||
| Share capital A/c | Dr. | 15,000 | |||
| To Equity share allotment A/c | 4500 | ||||
| To Equity share first call A/c | 3000 | ||||
| To Equity share forfeited A/c | 6000 | ||||
| To Equity share 2nd & final call A/c | 1500 | ||||
| (Being 1,600 shares forfeited @ ₹ 10 reserve share) | |||||
| Bank A/c | Dr. | 8,000 | |||
| Share forfeited A/c | Dr. | 2,000 | |||
| To Equity share capital A/c | 10,000 | ||||
| (Being 1,000 shares reissued) | |||||
| Share forfeited A/c | Dr. | 2,000 | |||
| To capital reserve A/c | 2,000 | ||||
| (Being share forfeited a/s transferred to capital reserve) | |||||
Working Note:
| Shares applied | Shares allotted | |
| Lot 1 | 35,000 | 35,000 |
| Lot 2 | 20,000 | 15,000 |
| 55,000 | 50,000 |
1 Table showing adjustment of excess amount received on application.
| Lot 1 | Lot 2 | total | |
| No. of shares applied | 35000 | 20000 | 55000 |
| Less: no. of shares allotted | 35000 | 15000 | 50000 |
| Over subscription | Nil | 5000 | 5000 |
| ₹ | ₹ | ₹ | |
| Excess amount received on application @ ₹ 3 each | 15,000 | 15,000 | |
| Less: amount adjusted on allotment @ ₹ 4 each | 15,000 | 15,000 | |
| Refunded to be made | Nil | Nil | Nil |
2 Calculation of unpaid amount on allotment on 1500 shares held by a shareholder.
| No. of shares applied by shareholder (1500x 20000/15000) | 2000 share |
| ₹ | |
| Amount received on application @ ₹ 3 each (2000*3) | 6000 |
| Less: actual amount on 2000 shares allotted to A (1500*3) | 4500 |
| 1500 | |
| ₹ | |
| Amount due on allotment from Shareholder (1500*4) | 6000 |
| Less: amount already received now to be adjusted | 1500 |
| Unpaid amount on 1500 shares of shareholder | 4500 |
3 Net Amount received on allotment
| ₹ | |
| Total amount due on allotment (50,000*4 | 2,00,000 |
| Less: amount already adjusted an allotment | 15,000 |
| 180,500 | |
| Less: paid amount received on allotment | 4500 |
| Net amount received on allotment | 1,80,500 |
4 Calculation of amount to be transferred to Capital Reserve
| ₹ | |
| Total amount forfeited on 1500 shares = 6000 | |
| Amount forfeited on 1000 shares = 6000*1000/1500 | 4000 |
| Less: discount allowed on reissued of 1000 share | 2000 |
| Profit transferred to capital reserve | 2000 |
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 76 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.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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