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Question No 74 Chapter 1 – UNIMAX Class 12 Part 2 – 2021
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X Ltd. invited application for 20,000 equity shares of ₹ 10 each, payable ₹ 2.50 on application ₹ 5 on allotment (including a premium of ₹ 2.50) and ₹ 5 on first and final call. The company received application for 25,000 shares. It was decided:
(a) To refuse allotment to the applicants for 1,000 shares;
(b) To allot in full to the applicants for 1,000 shares;
(c) To allot balance of the available shares pro-rata among the other applicants;
(d) To utilize the excess applications money in part payment of allotment money.
All the money due was received, except from on application to whom shares had been allotted on pro-rata basis he failed to pay allotment and call money and his 100 shares were forfeited. These shares were reissued at ₹ 9 per shares as fully paid. Give journal entries to record the above transaction in the books of the company.
The solution of Question 74 Chapter 1 of +2 Part-2: –
Journal
| Date | Particulars | L.F. | Debit | Credit | |
| Bank A/c | Dr. | 62,500 | |||
| To Equity share application A/c | 62,500 | ||||
| (Being application money received on 25,000 shares @ ₹ 2.5 each) | |||||
| Equity shares application A/c | Dr. | 62,500 | |||
| To Equity shares capital A/c | 50,000 | ||||
| To Equity share allotment A/c | 10,000 | ||||
| To bank A/c | 2500 | ||||
| (Being application money transferred to share capital a/c & after balance share allotment and 100 shares refunded) | |||||
| Shares allotment A/c | Dr. | 1,00,000 | |||
| To shares capital A/c | 50,000 | ||||
| To Securities premium reserve A/c | 50,000 | ||||
| (Being allotment money due on 20,000 share @ ₹ 5 per share including 2.5 premium) | |||||
| Bank A/c | Dr. | 89552.50 | |||
| To shares allotment A/c | 89552.50 | ||||
| (Being received on allotment money) | |||||
| Equity share first & final call A/c | Dr. | 1,00,000 | |||
| To Equity shares capital A/c | 1,00,000 | ||||
| (Being first call money due on 20,000 shares @ ₹ 5 per shares) | |||||
| Bank A/c | Dr. | 99500 | |||
| To Equity shares first & final call A/c | 99500 | ||||
| (Being first and final call money received except 100 share) | |||||
| Share capital A/c | Dr. | 1000 | |||
| Securities premium A/c | Dr. | 250 | |||
| To Share allotment A/c | 447.50 | ||||
| To Equity first & final call A/c | 500 | ||||
| To Share forfeited A/c | 302.50 | ||||
| (Being 100 shares of forfeited due to non-payment of allotment and first call money) | |||||
| Bank A/c | Dr. | 900 | |||
| Share forfeited A/c | Dr. | 100 | |||
| To Share capital A/c | 1,000 | ||||
| (Being 100 forfeited shares reissued @ ₹ 9 per share as fully paid up) | |||||
| Share forfeited A/c | Dr. | 202.50 | |||
| To capital reserve A/c | 202.50 | ||||
| (Being profit on 100 forfeited transferred to capital reserve A/c) | |||||
Working Note:
| Shares applied | Shares allotted | |
| Lot 1 | 1000 | 1000 |
| Lot 2 | 1000 | Nil |
| Lot 3 | 23000 | 19000 |
| 25000 | 20000 |
1 Table showing adjustment of excess amount received on application.
| Lot 1 | Lot 2 | Lot 3 | total | |
| No. of shares applied | 1000 | 1000 | 23000 | 25000 |
| Less: no. of shares allotted | 1000 | Nil | 19000 | 2000 |
| Over subscription | Nil | 1000 | 4000 | 5000 |
| ₹ | ₹ | ₹ | ||
| Excess amount received on application @ ₹ 50 each | Nil | 2500 | 10,000 | 12,500 |
| Less: amount adjusted on allotment | Nil | Nil | 10,000 | 10,000 |
| Refunded to be made | Nil | 2500 | Nil | 2500 |
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Share Capital: Meaning, Types, and Classes
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
