Question no 64 Chapter 1 - UNIMAX Class 12 Part 2

Question No 64 Chapter 1 – UNIMAX Class 12 Part 2 – 2021

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The solution of Question 64 Chapter 1 of +2 Part-2: –

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

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

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On application	₹ 3
On allotment	₹ 4
On first & final call	The balance

Application were received for 55,000 shares. Allotments were made on the following basis:
(1) To applications for 35,000 shares in full.
(2) To applications for 20,000 shares 15,000 shares.
Excess money paid on application was utilized towards allotment money.
A shareholder who was allotted 1,500 shares out of the group applying for 20,000 shares failed to pay allotment money and money due on calls. These shares were forfeited 1,000 forfeited shares were reissued as fully paid on receipt of ₹ 8 per share.
Show the journal entries in the books of the company.

The solution of Question 64 Chapter 1 of +2 Part-2: –

Journal
Books of Sakshi

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		1,65,000
	To share application A/c				1,65,000
	(Being application money received on 55,000 shares @ ₹ 3 each)
	Share application A/c	Dr.		1,65,000
	To share capital A/c				1,50,000
	To share allotment A/c				15,000
	(Being share application a/c closed after adjusting excess amount on allotment)
	Shares allotment A/c	Dr.		2,00,000
	To shares capital A/c				2,00,000
	(Being allotment money due on 50000 shares @ ₹ 4 each)
	Bank A/c	Dr.		1,80,500
	To shares allotment A/c				1,80,500
	(Being allotment money received with exception of 1500 shares)
	Share first & final call A/c	Dr.		1,50,000
	To shares capital A/c				1,50,000
	(Being first & final call money due on 50000 shares @ ₹ 3 each)
	Bank A/c	Dr.		1,45,500
	To share first & final call A/c				1,45,500
	(Being first & final call received of with exception of 1500 shares @ 3 each)
	Share capital A/c	Dr.		15,000
	To share first & final call A/c				4,500
	To share forfeited A/c				6,000
	To share allotment A/c				4,500
	(Being 1500 shares forfeited for non-payment of allotment and call money)
	Bank A/c	Dr.		8,000
	Share forfeited A/c	Dr.		2,000
	To share capital A/c				10,000
	(Being 1000 share reissued @ ₹ 8 per share)
	Share forfeited A/c	Dr.		2,000
	To capital reserve A/c				2,000
	(Being balance of share forfeited a/c transferred to capital reserve A/c)

Working Note:

	Shares applied	Shares allotted
Lot 1	35,000	35,000
Lot 2	20,000	15,000
	55,000	50,000

1 Table showing adjustment of excess amount received on application.

	Lot 1	Lot 2	total
No. of shares applied	35,000	20,000	55,000
Less: No. of shares allotted 35,000	15,000	50,000
Over subscription	Nil	5,000	5,000

	₹	₹	₹
Excess amount received on application @ ₹ 3 each	Nil	15,000	15,000
Less: amount adjusted on allotment	Nil	15,000	15,000
Refunded to be made	Nil	Nil	Nil

2 Calculation of unpaid amount on allotment on 1500 shares held by a Share holder

No. of shares applied by a Share holder	2000shares
	₹
Amount received on application @ ₹ 3 (2000*3)	6,000
Less: actual application amount on 1500 shares allotted to Share holder (1500*3)	4500
Amount to be adjusted on allotment	1500
	₹
Amount due on allotment from Shareholder (1500*4)	6,000
Less: amount already received now to be adjusted	1500
Unpaid amount on 8000 shares of Ram on allotment	4500

3 Net Amount received on allotment

	₹
Total amount due on allotment (50,000 *4)	2,00,000
Less: amount already adjusted an allotment	15,000
	1,85,000
Less: unpaid amount received on allotment	4500
Net amount received on allotment	1,80,500

4 Calculation of amount to be transferred to Capital Reserve

		₹
Amount forfeited on 1000 shares of shareholder		4000
Less: loss on reissued of 1000 shares of a shareholder (1000*2)		2000
Less: loss on reissued of 1000 shares of a shareholder (1000*2)		2000