Question no 74 Chapter 1 - UNIMAX Class 12 Part 2

Question No 74 Chapter 1 – UNIMAX Class 12 Part 2 – 2021

Table of Contents

The solution of Question 74 Chapter 1 of +2 Part-2: –

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

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

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