Question no 69 Chapter 1 - UNIMAX Class 12 Part 2

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

Table of Contents

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

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

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

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: –

Journal

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		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/c	Dr.		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/c	Dr.		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/c	Dr.		1,58,760
	To shares allotment A/c				1,58,760
	(Being allotment money received)
	Share first call A/c	Dr.		60,000
	To shares capital A/c				60,000
	(Being first call money due on 30000 shares @ ₹ 2 each)
	Bank A/c	Dr.		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/c	Dr.		4800
	Securities premium A/c	Dr.		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/c	Dr.		58,000
	To share capital A/c				58,000
	(Being share second & final call money due on 29,400 shares)
	Bank A/c	Dr.		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/c	Dr.		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/c	Dr.		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 applied	Shares allotted
Lot 1	4,000	Nil
Lot 2	36,000	30,000
	40,000	30,000

1 Table showing adjustment of excess amount received on application.

	Lot 1	Lot 2	total
No. of shares applied	4,000	36,000	40,000
Less: no. of shares allotted	Nil	30,000	30,000
Over subscription	4,000	6000	10,000

	₹	₹	₹
Excess amount received on application @ ₹ 3 each	12,000	18,000	30,000
Less: amount adjusted on allotment @ ₹ 6 each	18,000	18,000	20000
Refunded to be made	12,000	Nil	12,000

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

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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 allotment	360
	₹
Amount due on allotment from A (600*6)	3,600
Less: amount already received now to be adjusted	360
Unpaid amount from A on allotment	3240

3 Net Amount received on allotment

	₹
Total amount due on allotment 30,000 shares	1,80,0000
Less: amount already adjusted an allotment	18,000
	16,200
Less: unpaid amount on Sunder’s shares	3240
Net amount received on allotment	15,8760

4 Calculation of amount to be transferred to Capital Reserve

	₹	₹
Amount forfeited on A’s 600 shares	2,160
Less: Discount on reissue	Nil	2,160
Amount forfeited on 200 shares of B reissued	1200
Less discount on reissued of shares	Nil	1200
Capital reserve		3,360