Question no 75 Chapter 1 - UNIMAX Class 12 Part 2

Question No 75 Chapter 1 – UNIMAX Class 12 Part 2 – 2021

Table of Contents

The solution of Question 75 Chapter 1 of +2 Part-2: –

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

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

On July 1, 2022, a Limited Company offered for subscription 50,000 equity shares of ₹ 100 each at a premium of ₹ 20per share payable as given below:

On application	₹ 20 per share
On allotment	₹ 50 per share (including premium)
Two months after allotment	₹ 50 per share

Applications were received for 84,000 shares.
On July 1, 2022 the Directors proceeded to allot shares proportionately.
Of these, applications for 4,500 shares were accompanied with full amount and hence were accepted in full and the balance allotment was pro-rata. Excess amount paid by applicants was utilized towards allotment and call money due from them .
One of these applicants to whom 300 shares were allotted proportionately, failed to pay the call money. His shares were forfeited on November 30,2022 and subsequently issued @ ₹ 130 per share.
Record entries relating to these transactions in the journal of the company.

The solution of Question 75 Chapter 1 of +2 Part-2: –

Journal

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		16,80,000
	To share application A/c				16,80,000
	(Being share application money received on 84,000 shares @ ₹ 2 each)
	Share application A/c	Dr.		16,80,000
	To share capital A/c				10,00,000
	To share allotment A/c				68,000
	(Being share application a/c closed after adjusting excess amount received allotment)
	Shares allotment A/c	Dr.		25,00,000
	To shares capital A/c				15,00,000
	To securities premium A/c				10,00,000
	(Being allotment money due on 50000 shares @ ₹ 50 each included premium)
	Bank A/c	Dr.		18,20,000
	To shares allotment A/c				18,20,000
	(Being allotment money received)
	Share first & final call A/c	Dr.		25,00,000
	To shares capital A/c				25,00,000
	(Being first & final call money due on 50000 shares)
	Bank A/c	Dr.		24,85,000
	To share first & final call A/c				24,85,000
	(Being share first call money received)
	Share capital A/c	Dr.		30,000
	To share first & final call A/c				15,000
	To share forfeited A/c				15,000
	(Being 300 shares forfeited due to non-payment share first & final call)
	Bank A/c	Dr.		39,000
	To share capital A/c				30,000
	To Securities premium A/c				9,000
	(Being 300 share reissued @ ₹ 130 per share)
	Share forfeited A/c	Dr.		15,000
	To capital reserve A/c				15,000
	(Being balance of share forfeited a/c transferred to capital reserve A/c)

Working Note:

	Shares applied	Shares allotted
Lot 1	4500	4500
Lot 2	79500	45500
	84000	50000

1 Table showing adjustment of excess amount received on application.

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	Lot 1	Lot 2	total
No. of shares applied	4500	79500	84000
Less: no. of shares allotted	4500	45500	50000
Over subscription	Nil	34000	34000

		₹	₹
Excess amount received on application (34000*20)	Nil	6,80,000	6,80,000
Less: amount adjusted on allotment	Nil	6,80,000	6,80,000
Refunded to be made	Nil	Nil	Nil