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Question no 78 Chapter 1- Class 12 Part 2 Unimax
ABC Ltd. invited applications for 75,000 equity shares of ₹ 10 each at a premium of ₹ 3. The money was called as follows:
| On application | ₹ 2 per share |
| On allotment | ₹ 6 per share |
| On first | ₹ 3 per share |
| On final call | ₹ 2 per share |
The company received applications for 93,000 shares. Applications for 3,000 shares were totally rejected and their money was refunded. Rest of the allotment was done on pro-rata basis. The excess money with application was adjusted against amount due on allotment.
A to whom 600 shares were allotted paid only application money. On his failure to pay allotment and first call, his shares were forfeited and reissued for ₹ 9 per share as fully paid shares. Find call was received from remaining shareholders.
Pass necessary journal entries in the books of ABC Ltd.
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| Bank A/c | Dr. | 1,86,000 | |||
| To Equity share application A/c | 1,86,000 | ||||
| (Being application money received on 93000 shares @ ₹ 2 each) | |||||
| Equity shares application A/c | Dr. | 1,86,000 | |||
| To Equity shares capital A/c | 1,50,000 | ||||
| To Equity share allotment A/c | 30,000 | ||||
| To Bank A/c | 6,000 | ||||
| (Being application money transferred to share capital a/c and share allotment & balance amount on 3000 shares refunded) | |||||
| Equity share allotment A/c | Dr. | 4,50,000 | |||
| To Equity shares capital A/c | 2,25,000 | ||||
| To Securities premium reserve A/c | 2,25,000 | ||||
| (Being allotment money due on 75,000 share @ ₹ 6 per share including 3 premium) | |||||
| Bank A/c | Dr. | 4,16,640 | |||
| To Equity share allotment A/c | 4,16,640 | ||||
| (Being received on allotment money) | |||||
| Equity share 1st call A/c | Dr. | 2,25,000 | |||
| To Equity shares capital A/c | 2,25,000 | ||||
| (Being first call money due on 75,000 shares @ ₹ 3 per shares) | |||||
| Bank A/c | Dr. | 2,23,200 | |||
| To Equity shares 1st call A/c | 2,23,200 | ||||
| (Being first call money received on 74400 shares @ ₹ 3 per share) | |||||
| Equity share capital A/c | Dr. | 4800 | |||
| Securities premium A/c | Dr. | 1800 | |||
| To Equity share allotment A/c | 3360 | ||||
| To Equity first call A/c | 1800 | ||||
| To Share forfeited A/c | 1440 | ||||
| (Being 600 shares of shareholder A forfeited due to non-payment of allotment and first call money) | |||||
| Equity share second & final call A/c | Dr. | 1,48,800 | |||
| To Equity shares capital A/c | 1,48,800 | ||||
| (Being second & final call money due on 74400 shares @ ₹ 2 per share) | |||||
| Bank A/c | Dr. | 1,48,800 | |||
| To Equity share second call A/c | 1,48,800 | ||||
| (Being second & final call money received on74400 shares @ ₹ 2 per share) | |||||
| Bank A/c | Dr. | 5400 | |||
| Share forfeited A/c | Dr. | 600 | |||
| To Equity share capital A/c | 6000 | ||||
| (Being 600 forfeited shares reissued @ ₹ 9 per share as fully paid up) | |||||
| Share forfeited A/c | Dr. | 840 | |||
| To capital reserve A/c | 840 | ||||
| (Being profit on 600 forfeited transferred to capital reserve A/c) | |||||
Working Note:
| Shares applied | Shares allotted | |
| Lot 1 | 90,000 | 75,000 |
| Lot 2 | 3,000 | Nil |
| 93,000 | 75,000 |
1 Table showing adjustment of excess amount received on application.
| Lot 1 | Lot 2 | total | |
| No. of shares applied | 90,000 | 3,000 | 93,000 |
| Less: no. of shares allotted | 7500 | Nil | 75,000 |
| Over subscription | 15,000 | 3000 | 18,000 |
| ₹ | ₹ | ₹ | |
| Excess amount received on application | 30,000 | 6,000 | 36,000 |
| Less: amount adjusted on allotment | 30,000 | Nil | 30,000 |
| Refunded to be made | Nil | 6000 | 6000 |
2 Net Amount received on allotment
| No. of share allotted to Mr. A shareholder =600 share | |
| No. of shares applied by Mr. A shareholder = 600*9000/75000 | 720share |
| ₹ | |
| Application money received 720 shares = 720*2 | 1440 |
| Less: actual application amount on 600 shares = 600*2 | 1200 |
| 240 | |
| ₹ | |
| Allotment amount due Mr. It on 600 shares 600*6 | 3600 |
| Less: Excess application money adjusted | 240 |
| Amount not paid by Mr. A | 3360 |
| Total amount due on allotment 75000*6 | 4,50,000 |
| Less: application money already adjusted | 30,000 |
| 420000 | |
| Less: amount not paid by Mr. A | 3360 |
| Net amount received on allotment | 416640 |
4 Calculation of amount to be transferred to Capital Reserve
| ₹ | |
| Amount forfeited on 600 shares held by A | 1440 |
| Less: Discount on allowed on reissued shares | 600 |
| Balance credited to capital reserve a/c | 840 |
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 78 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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