Question no 80 Chapter 1 - UNIMAX Class 12 Part 2 - 2021

Question No  80 Chapter 1 - UNIMAX  Class 12 Part 2 - 2021

X Ltd. invited application for issuing 2,00,000 equity shares of ₹ 10 each. The amount was payable as follows:

On application	2
On allotment	5
On first & final call	3

Application for 4,00,000 shares were received and the allotment was made as follows:

Category	Shares applied	Shares allotted
Lot 1	50,000	40,000
Lot 2	1,00,000	30,000
Lot 3	2,50,000	1,30,000

All the shares were allotted on pro-rata basis and excess application money was adjusted towards sums due on allotment.
Raveesha who belonged to Category 1 and to whom 600 shares were allotted failed to pay the allotment money. Her shares were forfeited immediately after money was not received. Pooja who belonged to Category 2 and who had applied for 250 shares failed to pay the final call. Her shares were forfeited after the final call. The forfeited shares were reissued @ ₹ 9 per share fully paid up.
Pass necessary journal entries in the books of X Ltd.

The solution of Question 80 Chapter 1 of +2 Part-2: -

Journal

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		8,00,000
	To Equity share application A/c				8,00,000
	(Being application money received on 4,00,000 shares @ ₹ 2 each)
	Equity shares application A/c	Dr.		8,00,000
	To Equity shares capital A/c				4,00,000
	To Equity share allotment A/c				4,00,000
	(Being application money transferred to share capital a/c and shares allotment A/c)
	Equity share allotment A/c	Dr.		10,00,000
	To Equity shares capital A/c				10,00,000
	(Being allotment money due on 2,00,000 equity shares @ ₹ 5 per share)
	Bank A/c	Dr.		5,97,300
	To Equity share allotment A/c				5,97,300
	(Being received on allotment money)
Madhu	Equity share capital A/c	Dr.		4200
	To Equity share allotment A/c				2700
	To Share forfeited A/c				1500
	(Being 600 shares of shareholder Madhu forfeited due to non-payment of allotment money)
	Equity share first & final call A/c	Dr.		5,98,200
	To Equity shares capital A/c				5,98,200
	(Being first & final call money due on 1,99,400 shares @ ₹ 3 per share)
	Bank A/c	Dr.		5,97,450
	To Equity share first & final call A/c				5,97,450
	(Being first & final call money received on 1,99,150 shares @ ₹ 3 per share)
Pooja	Equity share capital A/c	Dr.		750
	To Equity share first & final call A/c				225
	To Equity share forfeited A/c				525
	(Being 75 shares of shareholder pooja forfeited due to non-payment of first and final call money)
	Bank A/c	Dr.		6,075
	Share forfeited A/c	Dr.		675
	To Equity share capital A/c				6,750
	(Being 675 forfeited shares reissued @ ₹ 9 per shares fully paid up)
	Share forfeited A/c	Dr.		1,350
	To capital reserve A/c				1,350
	(Being forfeited amount transfer to capital reserve)

Working Note:

	Shares applied	Shares allotted
Lot 1	50000	40000
Lot 2	100000	30000
Lot 3	250000	130000
	400000	200000

1 Table showing adjustment of excess amount received on application.

	Lot 1	Lot 2	Lot 3	total
No. of shares applied	50000	100000	50000	400000
Less: no. of shares allotted	40000	30000	130000	2000000
Over subscription	10000	70000	120000	200000
	₹	₹	₹	₹
Excess amount received on application	20000	140000	240000	400000
Less: amount adjusted on allotment	20000	1,40,000	2,40,000	4,00,000
Amount to be Refunded	nil	nil	nil	nil

2. Calculation of net amount received on Allotment 

No. of shares Allotted to Madhu =600 shares
No. of shares Applied by Madhu =600 x 50,000/40,000 =750 shares
	₹
Application Money Received on 750 shares from Madhu =(750 x 2)	1,500
Less: Actua Application money on 600 shares (600 x 2)	1,200
Excess Application money Adjustment towards allotment	300
	₹
Amount Due from Madhu on Allotment o 600 shares =(600 x 5)	3,000
Less: Excess Application money Adjusted =	300
Amount not paid by Madhu =	2,700
	₹
Total Amount Due on Allotment = 2,00,000 x 5 =	10,00,000
Less: Application Money Adjustment	4,00,000
	6,00,000
Less: Amount not Paid by Madhu	2,700
Net Amount Received on Allotment =	5,97,300

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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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