Question 78 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 78 Chapter 8 of +2-A

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The solution of Question 78 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)

78. Amrit Ltd. issued 50,000 shares of ₹ 10 each at a premium of ₹ 2 per share payable as ₹ 3 on the application, ₹ 4 on the allotment (including premium), ₹ 2 on the first call and the remaining on the second call.Applications were received for 75,000 shares and pro-rata allotment was made to all the applicants.All money due were received except allotment and first call from Sonu who applied for 1,200 shares. All his shares were forfeited. The forfeited shares were reissued for ₹ 9,600. The final call was not made. Pass necessary Journal entries.

The solution of Question 78 Chapter 8 of +2-A: –


Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		2,25,000
	To share application A/c				2,25,000
	(Being the application money received )
	Share application A/c	Dr		2,25,000
	To Share capital A/c				1,50,000
	To Share allotment A/c				75,000
	(Being application money transferred to equity share capital )
	Share allotment A/c	Dr		2,00,000
	To Share capital A/c				1,00,000
	To Securities premium A/c				1,00,000
	(Being the allotment money due )
	Bank A/c	Dr		1,23,000
	Calls in arrear A/c	Dr		2,000
	To Share allotment A/c				1,25,000
	(Being application money transferred to equity share capital )
	Share first call A/c	Dr		1,00,000
	To Share capital A/c				1,00,000
	(Being share forfeiture)
	Bank A/c	Dr		98,400
	Calls in arrear A/c	Dr		1,600
	To Share capital A/c				1,00,000
	(Being first call money received )
	Equity share capital A/c	Dr		5,600
	Securities premium reserve A/c	Dr		1,600
	To calls in arrear A/c				3,600
	To Share forfeiture A/c				4,000
	(Being the allotment money due )
	Bank A/c	Dr		9,600
	Share forfeiture A/c	Dr		400
	To Equity Share Capital A/c				10,000
	(Being forfeited share reissue )
	Share forfeiture A/c	Dr		3,600
	To capital Reserve A/c				3,600
	(Being the gain on reissue transferred to capital reserve )

Wroking Note:-

1.Calculation of numbers of shares allotted to Sonu
Shares applied by Sonu = Rs 1,200

Shares allotted to Sonu =	50,000	*1,200 = 800 shares
	75,000

2.Calculation of Amount Received on Allotment
Total allotment due on Sonu’s Shares (800 × Rs.4) = 3,200
Excess application money from Sonu adjusted towards allotment [(1200 *3 ) – (800 *3)] = 1,200
Amount not received from Sonu = 2,000
Total amount due allotment @ 50,000 shares=2,00,000
Less: Excess application money adjusted (75,000)
Less: Amount not received from sonu (2,000)
Amount received on allotment 1,23,000

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