Question no 66 Chapter 1 - UNIMAX Class 12 Part 2

Question No 66 Chapter 1 – UNIMAX Class 12 Part 2 – 2021

Table of Contents

The solution of Question 66 Chapter 1 of +2 Part-2: –

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

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

A company issued for public subscription 50,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share, payable as under:

On application	₹ 2 per share
On allotment	₹ 5 per share (including premium)
On first call	₹ 2 per share
On final call	₹ 3 per share

Application were received for 75,000 equity shares. The shares were allotment pro-rata to the applicants for 60,000 shares, the remaining application being rejected. Money overpaid on application was utilized towards the sum due on allotment. A, to whom 2,000 shares were allotted, failed to pay the allotment and two calls and B, to whom 2,500 shares, were allotted, failed to pay the two calls. These shares were subsequently forfeited after the final call was made. All the forfeited shares were sold at X as fully paid up at ₹ 8 per shares. Pass the journal entries required to record the above TRANSACTINS.

The solution of Question 66 Chapter 1 of +2 Part-2: –

Journal

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		1,50,000
	To share application A/c				1,50,000
	(Being share application money received on 75,000 shares @ ₹ 2 each)
	Share application A/c	Dr.		1,50,000
	To share capital A/c				1,00,000
	To share allotment A/c				20,000
	To bank A/c				30,000
	(Being share application a/c closed after adjusting excess amount on allotment and balance refunded)
	Shares allotment A/c	Dr.		2,50,000
	To shares capital A/c				1,50,000
	To securities premium A/c				1,00,000
	(Being allotment money due on 50000 shares @ ₹ 5 each included premium)
	Bank A/c	Dr.		2,20,800
	To shares allotment A/c				2,20,800
	(Being allotment money received)
	Share first call A/c	Dr.		1,00,000
	To shares capital A/c				1,00,000
	(Being first call money due on 50000 shares @ ₹ 2 each)
	Bank A/c	Dr.		91,000
	To share first call A/c				91,000
	(Being share first call money received with the exception of 4500 shares @ 2 each)
	Share final call A/c	Dr.		1,50,000
	To share capital				1,50,000
	(Being share final call money due on 50,000 shares @ 3 each)
	Bank A/c	Dr.		1,36,500
	To share capital A/c				1,36,500
	(Being share final call money received with the exception of 4500 shares)
	Share capital A/c	Dr.		45,000
	Securities premium A/c	Dr.		4000
	To share first call A/c				9,000
	To share final call A/c				13,500
	To share forfeited A/c				17,300
	To share allotment A/c				9,200
	(Being 4500 shares forfeited for non-payment of allotment and call money)
	Bank A/c	Dr.		36,000
	Share forfeited A/c	Dr.		9,000
	To share capital A/c				45,000
	(Being 4500 share reissued @ ₹ 8 per share)
	Share forfeited A/c	Dr.		8,300
	To capital reserve A/c				8,300
	(Being balance of share forfeited a/c transferred to capital reserve A/c)

Working Note:

	Shares applied	Shares allotted
Lot 1	15000	Nil
Lot 2	60000	50000
	75000	50000

1 Table showing excess amount received on application.

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	Lot 1	Lot 2	total
No. of shares applied	15000	60000	75000
Less: no. of shares allotted	Nil	50000	5000
Over subscription	15000	10000	25000

	₹	₹	₹
Excess amount received on application @ ₹ 2 each	30000	20000	50000
Less: amount adjusted on allotment	Nil	20000	20000
Refunded to be made	30000	Nil	30000

2 Calculation of unpaid amount on allotment on 2000 shares held by a Share holder

No. of shares applied by a Share holder	2400shares
	₹
Amount received on application @ ₹ 2 (2400*2)	4800
Less: actual application amount on 2000 shares allotted to (2000*2)	4000
Amount to be adjusted on allotment	800
	₹
Amount due on allotment from A (2000*5)	10000
Less: amount already received now to be adjusted	800
Unpaid amount on 8000 shares of A on allotment	9200

3 Net Amount received on allotment

	₹
Total amount due on allotment (50,000 *5)	250000
Less: amount already adjusted an allotment	20000
	23000
Less: unpaid amount received on allotment	9200
Net amount received on allotment	220800

4 Calculation of amount to be transferred to Capital Reserve