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

Question no -75 Chapter no-1 Unimax Class-12 Part-II
Question no -75 Chapter no-1 Unimax Class-12 Part-II


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


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: –


Date  Particulars
 Bank A/cDr. 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/cDr. 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/cDr. 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/cDr. 18,20,000 
 To shares allotment A/c  18,20,000
 (Being allotment money received)    
 Share first & final call A/cDr.  25,00,000 
 To shares capital A/c  25,00,000
 (Being first & final call money due on 50000 shares)   
 Bank A/cDr.  24,85,000 
 To share first & final call A/c  24,85,000
 (Being share first call money received)   
 Share capital A/cDr.  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/cDr. 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/cDr.  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 appliedShares allotted
Lot 145004500
Lot 27950045500


1 Table showing adjustment of excess amount received on application.

 Lot 1Lot 2total
No. of shares applied45007950084000
Less: no. of shares allotted45004550050000
Over subscriptionNil 3400034000
Excess amount received on application (34000*20)Nil6,80,0006,80,000
Less: amount adjusted on allotmentNil6,80,0006,80,000
Refunded to be madeNilNilNil

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