Question no 71 Chapter 1 – UNIMAX Class 12 Part 2 – 2021

Question no -71 Chapter no-1 Unimax Class-12 Part-II
Question no -71 Chapter no-1 Unimax Class-12 Part-II


Question No  71 Chapter 1 – UNIMAX  Class 12 Part 2 – 2021


A company issued for public subscription 50,000 equity shares of ₹ 20 each at a premium of ₹ 4 per share, payable as under:

On application₹ 4 per share
On allotment₹ 10 per share (including premium)
On first & final call₹ 10 per share

Application were received for 75,000 equity shares. The shares were allotted pro-rata to application of 60,000 shares, the remaining applications being rejected. Money overpaid on allotment was utilized towards the sum due on allotment.
‘A’ to whom 2,000 shares were allotted failed to pay the allotment money and the call money ‘B’ who was allotted 2,500 shares failed to pay the call money. These shares were subsequently forfeited after the first and final call was mode. The shares forfeited from ‘B’ were allotted to ‘X’ at ₹ 10 per shares fully paid up. Of the shares forfeited from ‘A’ 1,500 shares were reissued to ‘Y’ at ₹ 22 per share.
Pass necessary journal entries to record the above transactions in the books of the company and show the working notes clearly.

The solution of Question 71 Chapter 1 of +2 Part-2: –


Date  Particulars
 Bank A/cDr. 3,00,000 
 To share application A/c   3,00,000
 (Being share application money received on 75,000 shares @ ₹ 4 each)    
 Share application A/cDr. 3,00,000 
 To share capital A/c  2,00,000
 To share allotment A/c  40,000
 To bank A/c  60,000
 (Being share application A/c transferred to share capital A/c & balance refunded)    
 Shares allotment A/cDr. 5,00,000 
 To shares capital A/c  3,00,000
 To securities premium A/c  2,00,000
 (Being share allotment money due on 50,000 shares @ 10 each including premium ₹ 4 each)    
 Bank A/cDr. 4,41,600 
 To shares allotment A/c  4,41,600
 (Being allotment money received except on 2000 shares)    
 Share first call A/cDr. 5,00,000 
 To shares capital A/c  5,00,000
 (Being first & final call due on 50,000 shares @ ₹ 10 each including premium ₹ 4 each)   
 Bank A/cDr. 4,55,000 
 To Share first & final call A/c  4,55,000
 (Being first & final call money received exception of 4500 share @ ₹ 10 each)   
 Share capital A/cDr. 40,000 
 Securities premium reserve A/cDr.  8,000 
 To Share allotment A/c  18,400
 To Share first & final call A/c  20,000
 To Share forfeited A/c  9,600
 (Being 2000 shares forfeited due to non-payment of allotment and calls money)   
A.Share capital A/cDr. 50,000 
 To Share first & final call A/c   25,000
 To Share forfeited A/c   25,000
 (Being 2500 shares forfeited for non-payment of final call)    
 Bank A/cDr.  45,000 
 Share forfeited A/cDr. 5,000 
 To Share capital A/c   50,000
 (Being 2500 share forfeited were reissued at ₹ 18 each fully paid up)    
 Bank A/cDr. 33,000 
 To Share capital A/c   30,000
 To Securities premium A/c   3,000
 (Being 1500 shares reissued to Y @ ₹ 22 per share)    
 Share forfeited A/cDr. 27,200 
 To capital reserve A/c   27,200
 (Being balance of share forfeited a/c transferred to capital reserve A/c)    

Working Note:

 Shares appliedShares allotted
Lot 127,200Nil
Lot 260,00050,000

1 Table showing adjustment of excess amount received on application.

 Lot 1Lot 2total
No. of shares applied15,00060,00075,000
Less: no. of shares allottedNil50,00050,000
Over subscription15,00010,00025,000
Excess amount received on application @ ₹ 460,00040,000300000
Less: amount adjusted on allotmentNil40,00040,000
Refunded to be made60,000Nil60000


2 Calculation of unpaid amount on allotment on 2000 shares held by A.

No. of shares applied by A 2400 shares (2000*6/5) 
Amount received on application @ ₹ 4 (2400*4)9600
Less: actual application amount on 2000 shares allotted to A (2000*4)8000
Amount to be adjusted on allotment1600
Amount due on allotment from A (2000*10)20,000
Less: amount already received now to be adjusted1600
Unpaid amount on 100 shares of Sunder on allotment18,400

3 Net Amount received on allotment

Total amount due on allotment (50,000 share* ₹10)5,00,000
Less: amount already adjusted an allotment40,000
Less: unpaid amount on Sunder’s shares18,400
Net amount received on allotment4,41,600

4 Calculation of amount to be transferred to Capital Reserve

Amount forfeited on 2500 shares of B25,000
Less: Discount on reissue (2500*2)5,000
Amount forfeited on 2000 shares of A on 1500 shares amount forfeited7200
Less discount on reissued of sharesNil
Net amount to be transferred to capital reserve (20,000+7,200)27,200

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