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

Question no -76 Chapter no-1 Unimax Class-12 Part-II
Question no -76 Chapter no-1 Unimax Class-12 Part-II


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


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 callBalance

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: –


Date  Particulars
 Bank A/cDr. 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/cDr. 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/cDr. 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/cDr. 1,80,500 
 To Equity share allotment A/c  1,80,500
 (Being share allotment money received)    
 Equity share first call A/cDr. 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/cDr. 97,000 
 To Equity shares first call A/c  97,000
 (Being shares first call money received)   
 Equity share second and final call A/cDr. 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/cDr. 48,500 
 To Equity share second & final call A/c   48,500
 (Being shares final call money received)    
 Share capital A/cDr. 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/cDr. 8,000 
 Share forfeited A/cDr. 2,000 
 To Equity share capital A/c   10,000
 (Being 1,000 shares reissued)    
 Share forfeited A/cDr. 2,000 
 To capital reserve A/c   2,000
 (Being share forfeited a/s transferred to capital reserve)    

Working Note:

 Shares appliedShares allotted
Lot 135,00035,000
Lot 220,00015,000

1 Table showing adjustment of excess amount received on application.


 Lot 1Lot 2total
No. of shares applied350002000055000
Less: no. of shares allotted350001500050000
Over subscriptionNil50005000
Excess amount received on application @ ₹ 3 each 15,00015,000
Less: amount adjusted on allotment @ ₹ 4 each 15,00015,000
Refunded to be madeNilNilNil

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
Amount due on allotment from Shareholder (1500*4)6000
Less: amount already received now to be adjusted1500
Unpaid amount on 1500 shares of shareholder4500

3 Net Amount received on allotment

Total amount due on allotment (50,000*42,00,000
Less: amount already adjusted an allotment15,000
Less: paid amount received on allotment4500
Net amount received on allotment1,80,500

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

Thanks, Please Like and share with your friends  

Comment if you have any Doubts.

Share Capital: Meaning, Types, and Classes



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

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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements


error: Content is protected !!