Question no 76 Chapter 1 - UNIMAX Class 12 Part 2

Question No 76 Chapter 1 – UNIMAX Class 12 Part 2 – 2021

Table of Contents

The solution of Question 76 Chapter 1 of +2 Part-2: –

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

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

A Limited Company invites applications for 50,000 equity shares of ₹ 10 each payable as follows:

On application	₹ 3 per share
On allotment	₹ 4 per share
On first	₹ 2 per share
On final call	Balance

Application were received for 55,000 shares. Allotments were made on the following basis:
(1) To applicants for 35,000 shares in full.
(2) To applicants for 20,000 shares 15,000 shares.
Excess money paid on application was utilized towards allotment money.
A shareholder who was allotted 1,500 shares out of the group applying for 20,000 shares failed to pay allotment money and money due on calls. These shares were forfeited 1,000 forfeited shares were reissued as fully paid on receipt of ₹ 8 per share.
Show the journal entries in the books of company.

The solution of Question 76 Chapter 1 of +2 Part-2: –

Journal

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		1,65,000
	To Equity share application A/c				1,65,000
	(Being equity share application money received on 55,000 @ ₹ 3 per share)
	Equity shares application A/c	Dr.		1,65,000
	To Equity shares capital A/c				1,50,000
	To Equity share allotment A/c				15,000
	(Being application money transferred to share capital & transferred to share allotment)
	Equity share allotment A/c	Dr.		2,00,000
	To Equity shares capital A/c				2,00,000
	(Being share allotment money due on 50,000 shares @ ₹ 4 per share)
	Bank A/c	Dr.		1,80,500
	To Equity share allotment A/c				1,80,500
	(Being share allotment money received)
	Equity share first call A/c	Dr.		1,00,000
	To Equity shares capital A/c				1,00,000
	(Being equity share first call money due on 50,000 shares @ ₹ 2 per shares)
	Bank A/c	Dr.		97,000
	To Equity shares first call A/c				97,000
	(Being shares first call money received)
	Equity share second and final call A/c	Dr.		50,000
	To Equity shares capital A/c				50,000
	(Being equity shares final call money due on 50,000 @ ₹ 1 per share)
	Bank A/c	Dr.		48,500
	To Equity share second & final call A/c				48,500
	(Being shares final call money received)
	Share capital A/c	Dr.		15,000
	To Equity share allotment A/c				4500
	To Equity share first call A/c				3000
	To Equity share forfeited A/c				6000
	To Equity share 2nd & final call A/c				1500
	(Being 1,600 shares forfeited @ ₹ 10 reserve share)
	Bank A/c	Dr.		8,000
	Share forfeited A/c	Dr.		2,000
	To Equity share capital A/c				10,000
	(Being 1,000 shares reissued)
	Share forfeited A/c	Dr.		2,000
	To capital reserve A/c				2,000
	(Being share forfeited a/s transferred to capital reserve)

Working Note:

	Shares applied	Shares allotted
Lot 1	35,000	35,000
Lot 2	20,000	15,000
	55,000	50,000

1 Table showing adjustment of excess amount received on application.

	Lot 1	Lot 2	total
No. of shares applied	35000	20000	55000
Less: no. of shares allotted	35000	15000	50000
Over subscription	Nil	5000	5000

	₹	₹	₹
Excess amount received on application @ ₹ 3 each		15,000	15,000
Less: amount adjusted on allotment @ ₹ 4 each		15,000	15,000
Refunded to be made	Nil	Nil	Nil

2 Calculation of unpaid amount on allotment on 1500 shares held by a shareholder.

No. of shares applied by shareholder (1500x 20000/15000)	2000 share
	₹
Amount received on application @ ₹ 3 each (2000*3)	6000
Less: actual amount on 2000 shares allotted to A (1500*3)	4500
	1500
	₹
Amount due on allotment from Shareholder (1500*4)	6000
Less: amount already received now to be adjusted	1500
Unpaid amount on 1500 shares of shareholder	4500

3 Net Amount received on allotment

	₹
Total amount due on allotment (50,000*4	2,00,000
Less: amount already adjusted an allotment	15,000
	180,500
Less: paid amount received on allotment	4500
Net amount received on allotment	1,80,500

4 Calculation of amount to be transferred to Capital Reserve

		₹
Total amount forfeited on 1500 shares = 6000
Amount forfeited on 1000 shares = 6000*1000/1500		4000
Less: discount allowed on reissued of 1000 share		2000
Profit transferred to capital reserve		2000