Question no 65 Chapter 1 - UNIMAX Class 12 Part 2

Question No 65 Chapter 1 – UNIMAX Class 12 Part 2 – 2021

Table of Contents

The solution of Question 65 Chapter 1 of +2 Part-2: –

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

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

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.

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	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