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

Question no -74 Chapter no-1 Unimax Class-12 Part-II
Question no -74 Chapter no-1 Unimax Class-12 Part-II


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


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: –


Date  Particulars
 Bank A/cDr. 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/cDr. 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/cDr. 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/cDr. 89552.50 
 To shares allotment A/c  89552.50
 (Being received on allotment money)    
 Equity share first & final call A/cDr. 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/cDr. 99500 
 To Equity shares first & final call A/c  99500
 (Being first and final call money received except 100 share)   
 Share capital A/cDr. 1000 
 Securities premium A/cDr. 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/cDr. 900 
 Share forfeited A/cDr. 100 
 To Share capital A/c   1,000
 (Being 100 forfeited shares reissued @ ₹ 9 per share as fully paid up)    
 Share forfeited A/cDr. 202.50 
 To capital reserve A/c   202.50
 (Being profit on 100 forfeited transferred to capital reserve A/c)    

Working Note:

 Shares appliedShares allotted
Lot 110001000
Lot 21000Nil
Lot 32300019000

1 Table showing adjustment of excess amount received on application.

 Lot 1Lot 2Lot 3total
No. of shares applied100010002300025000
Less: no. of shares allotted1000Nil190002000
Over subscriptionNil100040005000
Excess amount received on application @ ₹ 50 eachNil250010,00012,500
Less: amount adjusted on allotmentNilNil10,00010,000
Refunded to be madeNil 2500Nil2500

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