Question no 70 Chapter 1 – UNIMAX Class 12 Part 2 – 2021

Question no -70 Chapter no-1 Unimax Class-12 Part-II
Question no -70 Chapter no-1 Unimax Class-12 Part-II


Question No  70 Chapter 1 – UNIMAX  Class 12 Part 2 – 2021


Surindra Ltd. invited application for issuing 2,00,000 equity shares of ₹ 30 each at a premium of ₹ 6 per share. The amount was payable as follows:

On application₹ 4 per share (including 1 premium)
On allotment₹ 6 per share (including 3 premium)
On first & final callBalance

Application for 3,60,000 shares were received. Application for 60,000 were rejected allotted on pro-rata basis to the remaining applicants. Excess money received with application was adjusted towards sums due on allotment. Ravinder holding 800 shares, failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards the final call was made. Harinder who applied for 1,200 shares failed to pay the final call. These shares were also forfeited. Out of the forfeited shares 1,000 shares were reissued at ₹ 8 per share fully paid up. The reissued shares included all the forfeited shares of Ravinder.
Pass necessary journal entries.

The solution of Question 70 Chapter 1 of +2 Part-2: –

 Books of Sakshi

Date  Particulars
 Bank A/cDr. 14,40,000 
 To Equity share application A/c   14,40,000
 (Being share application money received on 3,60,000 shares)     
 Equity share application A/cDr. 14,40,000 
 To Equity share capital A/c  6,00,000
 To Equity share allotment A/c  4,00,000
 To Securities premium reserve A/c  2,00,000
 To Bank A/c  2,40,000
 (Being share application money adjusted & surplus refunded)    
 Equity shares allotment A/cDr. 12,00,000 
 To Equity shares capital A/c  6,00,000
 To securities premium A/c  6,00,000
 (Being allotment made due)    
 Bank A/cDr. 7,96,800 
 Call in arrears A/cDr. 3,200 
 To Equity shares allotment A/c  8,00,000
 (Being allotment money received except on 800 shares)    
 Equity shares capital A/cDr. 4,800 
 Securities premium reserve A/cDr. 2,400 
 To Call in arrears A/c  3,200
 To Forfeited A/c  4,000
 (Being 800 shares of Ravinder forfeited after allotment)   
 Equity share first & final call A/cDr. 11,95,200 
 To Equity shares capital A/c  7,96,800
 To Securities premium reserve A/c  3,98,400
 (Being first & final call due on 1,99,200 shares)   
 Bank A/cDr. 11,90,400 
 Call in arrears A/cDr.  4,800 
 To Equity share first & final call A/c  11,95,200
 (Being first & final call money received except on 800 shares held by Harinder)   
 Equity share capital A/cDr. 8,000 
 Securities premium reserve A/cDr. 1,600 
 To calls in arrears A/c   4,800
 To Forfeited share A/c   4,800
 (Being 800 shares of Harinder forfeited for non-payment of call money)    
 Bank A/cDr.  8,000 
 Forfeited shares A/cDr. 2,000 
 To Equity share capital A/c   10,000
 (Being 1,000 shares reissued @ ₹ 8 per share fully paid up)    
 Share forfeited A/cDr. 3,200 
 To capital reserve A/c   3,200
 (Being balance of share forfeited a/c transferred to capital reserve A/c)    

Working Note:

(A). Total number of shares applied by Ravinder 
800 x 3,00,000/2,00,000=1,200 shares 
Excess application money received 
1,200 shares – 800 shares = 400 shares*4= ₹ 1,600 
(B). Allotment money due from Ravinder (800*6)4,800
Less: Excess received on application stage1,600
Allotment money not received3,200
(C). Total amount due on allotment (2,00,000*6)12,00,000
Less: Excess received on application4,00,000
Less: Amount not received from Ravinder on allotment3,200
Net Amount received on allotment in cash7,96,800

2 Harider was allotted =1,200*2,00,00/3,00,00 = 800 shares


3 Calculation of profit on reissued to be transferred to Capital Reserve

Amount forfeited on reissued shares4,000
Harider (200share)1,200
Total forfeited amount on 100 shares5,200
Less discount on reissued2,000
Profit on reissued to be transferred to capital reserve3,200

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