Question No 65 Chapter 1 – UNIMAX Class 12 Part 2 – 2021
Majestic Auto Parts Limited issued for public subscription 60,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share payable as under:
| with application | ₹ 2.50 per share |
| On allotment (including premium) | ₹ 5 per share |
| On first | ₹ 2 per share |
| On final call | ₹ 2.50 per share |
Application were on received for 1,80,000 shares. Allotment was made on pro-rata basis. Excess money on application was adjusted against the amount due on allotment.
X to whom 2,400 shares were allotted failed to pay the two calls.
These shares were subsequently forfeited after the second call was made. All the shares forfeited were reissued to on Z as fully paid at ₹ 7 per share.
Record journal entries in the books of the company to record these transferred relating to share capital.
The solution of Question 65 Chapter 1 of +2 Part-2: –
Journal
Books of Sakshi
| Date | Particulars |
L.F. | Debit | Credit | |
| Bank A/c | Dr. | 4,50,000 | |||
| To share application A/c | 4,50,000 | ||||
| (Being application money received on 1,80,000 shares @ ₹ 2.50 each) | |||||
| Share application A/c | Dr. | 4,50,000 | |||
| To share capital A/c | 1,50,000 | ||||
| To share allotment A/c | 3,00,000 | ||||
| (Being share application a/c closed after adjusting excess amount on allotment) | |||||
| Shares allotment A/c | Dr. | 3,00,000 | |||
| To shares capital A/c | 1,80,000 | ||||
| To securities premium A/c | 1,20,000 | ||||
| (Being allotment money due on 6000 shares @ ₹ 5 each) | |||||
| Bank A/c | Dr. | Nil | |||
| To shares allotment A/c | Nil | ||||
| (Being allotment money already received) | |||||
| Share first call A/c | Dr. | 1,20,000 | |||
| To shares capital A/c | 1,20,000 | ||||
| (Being first call money due on 60000 shares @ ₹ 2 each) | |||||
| Bank A/c | Dr. | 1,15,200 | |||
| To share first call A/c | 1,15,200 | ||||
| (Being first call received of with exception of 2400 shares of @ ₹ 2 each) | |||||
| Share 2nd & final call A/c | Dr. | 1,50,000 | |||
| To share capital A/c | 1,50,000 | ||||
| (Being share second & final call money received with the exception of 2400 shares @ ₹ 2.50 each) | |||||
| Bank A/c | Dr. | 1,44,000 | |||
| To share 2nd & final call A/c | 1,44,000 | ||||
| (Being 2nd & final call money received with the exception of 2400 shares @ ₹ 2.50 each) | |||||
| Share capital A/c | Dr. | 24,000 | |||
| To share first call A/c | 4800 | ||||
| To share forfeited A/c | 13,200 | ||||
| To share 2nd & final A/c | 6,000 | ||||
| (Being 2400 shares forfeited for non-payment of first & 2nd and final call money) | |||||
| Bank A/c | Dr. | 16,800 | |||
| Share forfeited A/c | Dr. | 7200 | |||
| To share capital A/c | 2400 | ||||
| (Being 2400 share reissued @ ₹ 7 per share) | |||||
| Share forfeited A/c | Dr. | 6000 | |||
| To capital reserve A/c | 6000 | ||||
| (Being balance of share forfeited a/c transferred to capital reserve A/c) | |||||
Working Note:
| Shares applied | Shares allotted | |
| Lot 1 | 1,80,000 | 6,00,000 |
| 1,80,000 | 6,00,000 |
1 Table showing adjustment of excess amount received on application.
| Lot 1 | total | |
| No. of shares applied | 1,80,000 | 1,80,000 |
| Less: no. of shares allotted | 6,00,000 | 6,00,000 |
| Over subscription | 1,20,000 | 1,20,000 |
| ₹ | ₹ | |
| Excess amount received on application @ ₹ 2.50 each | 3,00,000 | 3,00,000 |
| Less: amount adjusted on allotment @ ₹ 5 per share | 3,00,000 | 3,00,000 |
| Refunded to be made | Nil | Nil |
2 Calculation of net amount received on allotment
| ₹ | |
| Total amount due on allotment | 3,00,000 |
| Less: amount already received now to be adjusted | 3,00,000 |
| Amount to be adjusted on allotment | Nil |
3 Calculation of amount to be transferred to Capital Reserve
| ₹ | ||
| Total amount forfeited | 13,200 | |
| Less: loss on reissued of shares | 7200 | |
| Amount transferred to capital reserve | 6,000 |
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Share Capital: Meaning, Types, and Classes
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Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
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