Question no 73 Chapter 1 - UNIMAX Class 12 Part 2

Question No 73 Chapter 1 – UNIMAX Class 12 Part 2 – 2021

Table of Contents

The solution of Question 73 Chapter 1 of +2 Part-2: –

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

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

Gupta Ltd. issued 30,000 shares of ₹ 10 each at ₹ 4 premium.
On application ₹ 4 (including premium) On allotment ₹ 3 (including 1 premium) On first call₹ 4 (including 1 premium) On second & final call ₹ 3 (including 1 premium)
Application were received 40,000 shares and pro-rata allotment was made on the application for 35,000 shares. It was decided to utilizes excess application money towards the sums due on allotment. Sandeep to whom 600 shares were allotted, failed to pay the allotment money and his shares were forfeited after allotment. Mandeep who applied for Rajvir who was allotted 300 shares did not pay final call.
Of the shares forfeited 1,100 shares were reissued as fully paid up for ₹ 9 per shares, the whole of Mandeep shares being included. Pass necessary journal entries.

The solution of Question 73 Chapter 1 of +2 Part-2: –

Journal

Date	Particulars		L.F.	Debit	Credit
	Shares Application A/c	Dr.		1,40,000
	To Share capital A/c				90,000
	To Share allotment A/c				20,000
	To Securities premium reserve A/c				30,000
	(Being share application money transferred)
	Share Allotment A/c	Dr.		90,000
	To Shares capital A/c				60,000
	To Securities premium reserve A/c				30,000
	(Being allotment money due on 30,000 shares)
	Share capital A/c	Dr.		3,000
	Securities premium reserve A/c	Dr.		600
	To Share Allotment A/c				1,400
	To Share forfeited A/c				2,200
	(Being forfeited of 600 shares of Sandeep for non-payment of allotment money)
	Shares first call A/c	Dr.		1,17,600
	To Share capital A/c				88,200
	To Securities premium reserve A/c				29,400
	(Being first call money due on 29,400 shares)
	Shares second & final A/c	Dr.		88,200
	To Share capital A/c				58,800
	To Securities premium reserve A/c				29,400
	(Being second & final call due on 29,400 shares)
	Share capital A/c	Dr.		9,000
	Securities premium reserve A/c	Dr.		1,800
	To Share first call A/c				3,600
	To Share second & final call A/c				2,700
	To Share forfeited A/c				4,500
	(Being forfeited of 900 share of Mandeep for non-payment of calls)
	Share forfeited A/c	Dr.		1,100
	To Share capital A/c				1,100
	(Being loss of ₹ 1 per share on the reissued of 1,100 shares)
	Share forfeited A/c	Dr.		4,133
	To Capital reserve A/c				4,133
	(Being profit on 1100 reissued shares transferred to capital reserve A/c)

Date	Particulars	Amount	Date	Particulars	Amount
	To share application A/c	1,60,000		By Share application A/c	20,000
	To share allotment A/c	68,600		By Balance c/d	4,17,100
	To share first call A/c	1,14,000
	To share 2nd & final call A/c	84,600
	To share capital A/c	9,900
		4,37,100			4,37,100

Working Note:

1. (a) Excess amount received from Sandeep on application Sandeep has been allotted 600 shares
Therefore, he must have applied for 600*35000/30,000 = 700 shares.
Excess application money received from Sandeep 700 shares – 600 shares = 100*4 = 400

Amount due from Sandeep on allotment 600 shares *3	1,800
Less: excess received from Sandeep on application	400
Allotment money not received from Sandeep	1,400
Total amount due on allotment 30000*3	90,000
Less: Excess amount received on application	20,000
Balance due	70,000
Less: amount not received from Sandeep on allotment	1,400
Net amount received on allotment in cash	68,600
Mandeep applied for 1050 shares
Therefore, he must have been allotted= 1,050*30,000/35,000 = 900 share
He has not paid first and second call money.
As such (1) first call money will be received on 29,400-900 of Mandeep = 28,500 shares
2. Second call money will be received on 29,400 shre-900share of Mandeep -300 shares of Rajvir = 28,200 share

1,1,00 share have been reissued which include 900 shares of Mandeep and the balance 200 of Sandeep

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Profit on 200 shares of Sandeep = 200*2200/600	733
Profit on 900 shares of Mandeep	4,500
	5,233
Less: Loss on reissued of 1,100 shares @ ₹ 1 each	1,100
	4,133

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