Question no 63 Chapter 1 - UNIMAX Class 12 Part 2

Question No 63 Chapter 1 – UNIMAX Class 12 Part 2 – 2021

Table of Contents

The solution of Question no 63 Chapter 1 – UNIMAX of +2 Part-2: –

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

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

Radhika Textiles Ltd. invited applications for 75,000 equity shares of ₹ 10each issued at a premium of ₹ 4 per share. The amount was payable as follows:

On application ₹ 4 (including ₹ 2 premium)
On allotment ₹ 5 (including ₹ 2 premium)
Balance on first and final call.
Application for 1,00,000 shares was received. The allotment was made to all the applicants on a pro-rata basis.
Komal to whom 300 shares were allotted failed to pay allotment and call money. Sumeet to whom 150 shares were allotted failed to pay the call money. These shares were forfeited. The forfeited shares were reissued @ ₹ 8 per share fully paid up.
Pass the necessary journal entries.

The solution of Question no 63 Chapter 1 – UNIMAX of +2 Part-2: –

Journal
Books of Sakshi

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		5,00,000
	To share application A/c				5,00,000
	(Being application money received on 1,00,000 shares @ ₹ 5 each)
	Share application A/c	Dr.		5,00,000
	To share capital A/c				2,25,000
	To share allotment A/c				1,50,000
	To securities premium A/c				1,25,000
	(Being share application a/c closed after adjusting excess amount on the allotment and securities premium)
	Shares allotment A/c	Dr.		3,75,000
	To share capital A/c				2,25,000
	To securities premium A/c				1,50,000
	(Being allotment money due on 75000 shares @ ₹ 3 each including security premium @ ₹ 2 each)
	Bank A/c	Dr.		2,49,000
	To share allotment A/c				2,49,000
	(Being allotment money received on 75000 shares except 300 shares)
	Share first & final call A/c	Dr.		3,00,000
	To share capital A/c				3,00,000
	(Being first & final call money due on 75000 shares @ ₹ 4 each)
	Bank A/c	Dr.		2,98,200
	To share the first & final call A/c				2,98,200
	(Being the first & final call received of the exception of 450 shares @ 4 each)
	Share capital A/c	Dr.		3000
	Securities premium A/c	Dr.		600
	To share first & final call A/c				1200
	To share forfeited A/c				1400
	To share allotment A/c				1000
	(Being 300 shares forfeited for non-payment of allotment and call money)
	Share capital A/c	Dr.		1500
	To share first & final call A/c				600
	To share forfeited A/c				900
	(Being 150 shares forfeited for non-payment of allotment and final call)
	Bank A/c	Dr.		3600
	Share forfeited A/c	Dr.		900
	To share capital A/c				4500
	(Being 450 share reissued @ ₹ 8 per share)
	Share forfeited A/c	Dr.		1400
	To capital reserve A/c				1400
	(Being balance of share forfeited a/c transferred to capital reserve A/c)

Working Note:

	Shares applied	Shares allotted
Lot 1	1,00,000	75,000
	1,00,000	75,000

1 Table showing adjustment of the excess amount received on the application.

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	Lot 1	total
No. of shares applied	1,00,000	1,00,000
Less: no. of shares allotted	75,000	75,000
Oversubscription	25,000	25,000

	₹	₹
The excess amount received on application @ ₹ 5 each	1,25,000	1,25,000
Less: amount adjusted on allotment	1,25,000	1,25,000
Refunded to be made	Nil	Nil

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

No. of shares applied by Punet	400 shares
	₹
Amount received on application @ ₹ 5 (400*5)	2,000
No. of shares allotted to Ram 300 shares
Less: actual application amount on 300 shares allotted to Punet (300*5)	1500
Amount to be adjusted on allotment	500
	₹
Amount due on allotment from Punet (300*5)	1500
Less: The amount already received is now to be adjusted	500
Unpaid amount on 300 shares of Sunder on allotment	1000

3 Net Amount received on allotment

	₹
Total amount due on allotment (75000 *5)	3,75,000
Less: amount already adjusted an allotment	1,25,000
	2,50,000
Less: unpaid amount received on the allotment	1000
Net amount received on the allotment	2,49,000

4 Calculation of amount to be transferred to Capital Reserve