Question no 69 Chapter 1 – UNIMAX Class 12 Part 2 – 2021

Question no -69 Chapter no-1 Unimax Class-12 Part-II
Question no -69 Chapter no-1 Unimax Class-12 Part-II


Question No  69 Chapter 1 – UNIMAX  Class 12 Part 2 – 2021


Amrit Ltd. invited applications for 30,000 equity shares of ₹ 10 each issued at premium of ₹ 3 per share, payable as follows: ₹ 3 on application, ₹ 6 o n application, ₹ 6 on allotment including premium ₹ 2 on first call and ₹ 2 on final all. Application were received for 40,000 shares. Application for 4,000 shares were rejected and pro rata allotment was made to the remaining applicants. Mr. A, holder of 600 shares, failed to pay allotment and on his subsequent failure to pay first call, his shares were forfeited. Mr. B holder of 400 shares, failed to pay two calls. His shares were forfeited, later on 800 shares (including 600 shares of A), were reissued to Mr. C as fully paid at ₹ 11 per share.
Pass necessary journal entries in the books of Amrit Ltd

The solution of Question 69 Chapter 1 of +2 Part-2: –


Date  Particulars
 Bank A/cDr. 1,20,000 
 To share application A/c   1,20,000
 (Being share application money received on 40,000 shares @ ₹ 3 each)    
 Share application A/cDr. 1,20,000 
 To share capital A/c  90,000
 To share allotment A/c  18,000
 To bank A/c  12,000
 (Being share application a/c closed after adjusting excess amount received on allotment and balance refunded)    
 Shares allotment A/cDr. 1,80,000 
 To shares capital A/c  90,000
 To securities premium A/c  90,000
 (Being allotment money due on 30000 shares @ ₹ 6 each)    
 Bank A/cDr. 1,58,760 
 To shares allotment A/c  1,58,760
 (Being allotment money received)    
 Share first call A/cDr. 60,000 
 To shares capital A/c  60,000
 (Being first call money due on 30000 shares @ ₹ 2 each)   
 Bank A/cDr. 58,000 
 To share first call A/c  58,000
 (Being share first call money received with the exception of 1000 shares)   
 Share capital A/cDr. 4800 
 Securities premium A/cDr.  1800 
 To share first call A/c  1200
 To share forfeited A/c  2,160
 To share allotment A/c  3,240
 (Being 600 shares of A forfeited due to for non-payment of allotment and first call)   
 Share second & final call A/cDr. 58,000 
 To share capital A/c   58,000
 (Being share second & final call money due on 29,400 shares)    
 Bank A/cDr.  58,000 
 To share second & final call A/c   58,000
 (Being share second & final call money received with the exception of 400 shares)    
 Equity share capital A/cDr. 4,000 
 To share first call A/c   800
 To share second & final call A/c   800
 To share forfeited A/c   24,000
 (Being 400 shares of Mr. B forfeited due to non-payment of call)    
 Bank A/c Dr. 8,800 
 To Equity share capital A/c   8,800
 To Securities premium A/c   800
 (Being 800 share reissued @ ₹ 11 each)    
 Share forfeited A/cDr. 3,360 
 To capital reserve A/c   3,360
 (Being balance of share forfeited a/c transferred to capital reserve A/c)    

Working Note:

 Shares appliedShares allotted
Lot 14,000Nil
Lot 236,00030,000

1 Table showing adjustment of excess amount received on application.

 Lot 1Lot 2total
No. of shares applied4,00036,00040,000
Less: no. of shares allottedNil30,00030,000
Over subscription4,000600010,000
Excess amount received on application @ ₹ 3 each12,00018,00030,000
Less: amount adjusted on allotment @ ₹ 6 each18,00018,00020000
Refunded to be made12,000Nil12,000

2 Calculation of unpaid amount on A’s shares on allotment.

No. of shares applied by A (600*6/5)720 shares
Amount received on application from A (720*3)2,160
Less: actual application amount on 600 shares allotted to him (600*3)1800
Excess Amount received to be adjusted on allotment360
Amount due on allotment from A (600*6)3,600
Less: amount already received now to be adjusted360
Unpaid amount from A on allotment3240


3 Net Amount received on allotment

Total amount due on allotment 30,000 shares1,80,0000
Less: amount already adjusted an allotment18,000
Less: unpaid amount on Sunder’s shares3240
Net amount received on allotment15,8760

4 Calculation of amount to be transferred to Capital Reserve

Amount forfeited on A’s 600 shares2,160 
Less: Discount on reissueNil2,160
Amount forfeited on 200 shares of B reissued1200 
Less discount on reissued of sharesNil1200
Capital reserve 3,360

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