Question no 61 Chapter 1 - UNIMAX Class 12 Part 2

Question No 61 Chapter 1 – UNIMAX Class 12 Part 2 – 2021

Table of Contents

The solution of Question 61 Chapter 1 of +2 Part-2: –

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

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

K Limited has registered with an authorized capital of ₹ 2,00,000 divided into 2,000 shares of ₹ 100 each of which, 1,000 shares were offered for public subscription at a premium of ₹ 5 per share, payable as under:

On application	₹ 10
On allotment	₹ 25 (including premium)
On first	₹40
On final call	₹ 30

Application were received for 1,800 shares, of which application for 300 shares were rejected outright; the rest of the application were allotment 1,000 shares on pro-rata basic. Excess application money was transferred to allotment.
All the money was duly received expect from Sunder, holder of 100 shares, who failed to pay allotment and first call money. His shares were later forfeited, and reissued to SHYAM at ₹ 60 per share, ₹ 70 paid up. Final call has not been made.
Pass necessary cash and journal entries in the books of K Limited.

The solution of Question 61 Chapter 1 of +2 Part-2: –

Journal
Books of Sakshi

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		18,000
	To share application A/c				18,000
	(Being application money received on 1800 shares @ ₹ 10each)
	Share application A/c	Dr.		18,000
	To share capital A/c				10,000
	To share allotment A/c				5,000
	To bank A/c				3,000
	(Being share application a/c closed after adjusting excess amount on allotment and balance refunded)
	Shares allotment A/c	Dr.		25,000
	To shares capital A/c				20,000
	To securities premium A/c				5,000
	(Being allotment money due on 1,000 shares @ ₹ 25 each including premium amount)
	Bank A/c	Dr.		18,000
	To shares allotment A/c				18,000
	(Being allotment money received on 1,000 shares with exception of 100 shares)
	Share first call A/c	Dr.		40,000
	To shares capital A/c				40,000
	(Being first call money due on 1,000 shares @ ₹ 40 each)
	Bank A/c	Dr.		36,000
	To share first call A/c				36,000
	(Being share first (odd received with exception of 100 shares)
	Share capital A/c	Dr.		7,000
	Securities premium A/c	Dr.		500
	To share first call A/c				4,000
	To share forfeited A/c				1,500
	To share allotment A/c				2,000
	(Being 100 shares forfeited for non-payment of allotment and call money)
	Bank A/c	Dr.		6,000
	Share forfeited A/c	Dr.		1,000
	To share capital A/c				7,000
	(Being 100 share received @ ₹ 60 per share)
	Share forfeited A/c	Dr.		500
	To capital reserve A/c				500
	(Being balance of share forfeited a/c transferred to capital reserve A/c)

Working Note:

	Shares applied	Shares allotted
Lot 1	300	Nil
Lot 2	1500	1000
	1800	1000

1 Table showing adjustment of excess amount received on application.

	Lot 1	Lot 2	total
No. of shares applied	300	1500	1800
Less: no. of shares allotted	Nil	1000	1000
Over subscription	300	500	800

	₹	₹	₹
Excess amount received on application	3000	5000	8000
Less: amount adjusted on allotment	Nil	5000	5000
Refunded to be made	3000	Nil	3000

2 Calculation of unpaid amount on allotment on 100 shares held by Sunder.

No. of shares applied by Sunder (100*3/2)	150 shares
	₹
Amount received on application @ ₹ 10 (150*10)	1500
Less: actual application amount on 100 shares held by Sunder (100*25)	1000
Amount to be adjusted on allotment	500
	₹
Amount due on allotment from Sunder (100*25)	2500
Less: amount already received now to be adjusted	500
Unpaid amount on 100 shares of Sunder on allotment	2000

3 Net Amount received on allotment

	₹
Total amount due on allotment (1000 shares *25)	25000
Less: amount already adjusted an allotment	5000
	20000
Less: unpaid amount on Sunder’s shares	2000
Net amount received on allotment	18000