Question 73 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 73 Chapter 8 of +2-A

Table of Contents

The solution of Question 73 Chapter 8 of +2-A: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

73. Media Ltd. invited applications for issuing 27,000 shares of ₹ 100 each payable as follows:

₹ 50——per share on the application;
₹ 10——per share on allotment; and
Balance——on First and Final call.

Applications were received for 40,000 shares. The full allotment was made to the applicants of 7,000 shares. The remaining applicants were allotted 20,000 shares on a pro-rata basis. Excess money received on applications was adjusted towards allotment and call.Asha, holding 600 shares was belonged to the category of applicants to whom full allotment was made, paid the call money at the time of allotment . Ankur, who belonged to the category of applicants to whom shares were allotted on pro-rata basis did not pay anything after application on his 200 shares. Ankur’s shares were forfeited after the First and Final call. These shares were later reissued at ₹ 105 per share as fully paid-up.Pass necessary journal entries in the books of Midee Ltd . for the above transactions, by opening Calls-in-Arrears and Calls-in-Advance Accounts wherever necessary.

The solution of Question 73 Chapter 8 of +2-A: –


Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		20,00,000
	To share application A/c				20,00,000
	(Being the application money received )
	Share application A/c	Dr		20,00,000
	To Share capital A/c				13,50,000
	To calls in advance A/c				6,50,000
	(Being application money transferred to equity share capital )
	Share allotment A/c	Dr		2,70,000
	To Share capital A/c				2,70,000
	(Being the allotment money due )
	Bank A/c	Dr		94,000
	Calls in advance A/c	Dr		2,00,000
	To Share allotment A/c				2,70,000
	To calls in advance for calls A/c				24,000
	(Being allotment money transferred to equity share capital )
	Share first and final call A/c	Dr		10,80,000
	To Share capital A/c				10,80,000
	(Being the first call money due )
	Bank A/c	Dr		6,26,500
	Calls in advance A/c	Dr		4,50,000
	Calls in arrear A/c	Dr		3,500
	To Share first call A/c				10,80,000
	(Being first call money received )
	Equity share capital A/c	Dr		20,000
	To Share forfeiture A/c				3,500
	To calls in arrear A/c				1,16,500
	(Being the gain on reissue transferred to capital reserve )
	Bank A/c	Dr		21,000
	To Equity share capital A/c				20,000
	To securities premium A/c				1,000
	(Being share forfeiture)
	Share forfeiture A/c	Dr		16,500
	To capital Reserve A/c				16,500
	(Being forfeited share reissue )