Question no 60 Chapter 1 - UNIMAX Class 12 Part 2

Question No 60 Chapter 1 – UNIMAX Class 12 Part 2 – 2021

Table of Contents

The solution of Question 60 Chapter 1 of +2 Part-2: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

JYANTI Ltd. invited application for issuing 90,000 shares of 20 each at a premium of ₹ 40 per share. The amount was payable as follows:

On application	₹ 40 (including ₹30 premium)
On allotment	₹ 12 (including ₹ 4 premium)
On first & final call	Balance

Application for 87,000 shares were received. Shares were allotted to the applicants. NITTU to whom 10,000 shares were allotted failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards, the first and final call was made. ISHU the holder of 500 shares failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares, 100 shares, 100 shares were reissued at ₹ 40 per share fully paid up. The reissued shares included all the shares of ISHU.
Pass necessary journal entries for the above transaction in the books of JYANTI Ltd.

The solution of Question 60 Chapter 1 of +2 Part-2: –

Journal
Books of Sakshi

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		34,80,000
	To Equity Shares Application A/c				34,80,000
	(Being application money received on 87,000 shares @ ₹ 40 per share)
	Equity shares Application A/c	Dr.		34,80,000
	To Equity share capital A/c				8,70,000
	To securities premium reserve A/c				26,10,000
	(Being application money transferred to share capital a/c)
	Equity share Allotment A/c	Dr.		10,44,000
	To Equity shares capital A/c				6,96,000
	To securities premium reserve A/c				3,48,000
	(Being allotment money due on 87,000 shares @ ₹ 12 per share)
	Bank A/c	Dr.		10,32,000
	To Equity Share Allotment A/c				10,32,000
	(Being allotment money received on 86,000 shares)
	Equity shares first call A/c	Dr.		18,000
	Securities premium reserve A/c	Dr.		4,000
	To equity share allotment A/c				12,000
	To forfeited share A/c				10,000
	(Being 1,000 shares forfeited due to non-payment of allotment money)
	Equity share first & final call A/c	Dr.		6,88,000
	To equity shares capital A/c				1,72,000
	To securities premium reserve A/c				5,16,000
	(Being amount due on first & final call on 85,500 shares)
	Bank A/c	Dr.		6,84,000
	To equity share first & final call A/c				6,84,000
	(Being share first & final call money received on 85,500 shares)
	Equity share capital A/c	Dr.		10,000
	Securities premium reserve A/c	Dr.		3,000
	To equity share first & final call A/c				4,000
	To share forfeited A/c				9,000
	(Being 500 shares forfeited for non-payment of call money)
	Bank A/c	Dr.		40,000
	To equity share capital A/c				20,000
	To securities premium reserve A/c				20,000
	(Being 1,000 forfeited shares reissued)
	Share forfeited A/c	Dr.		14,000
	To capital reserve A/c				14,000
	(Being on reissued of shares, transferred to capital reserve A/c)

Working Note:

Calculation forfeited of profit on reissue

Amount forfeited on ISHU ’s 500 shares	= ₹ 9000
Amount forfeited on NITTU ’s 500 shares	500/1,000 X 10,000 =5,000
Amount transferred to capital reserve A/c	= 14000

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