Question no 78 Chapter 1 - UNIMAX Class 12 Part 2

Question No 78 Chapter 1 – UNIMAX Class 12 Part 2 – 2021

Table of Contents

The solution of Question 78 Chapter 1 of +2 Part-2: –

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

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

ABC Ltd. invited applications for 75,000 equity shares of ₹ 10 each at a premium of ₹ 3. The money was called as follows:

On application	₹ 2 per share
On allotment	₹ 6 per share
On first	₹ 3 per share
On final call	₹ 2 per share

The company received applications for 93,000 shares. Applications for 3,000 shares were totally rejected and their money was refunded. Rest of the allotment was done on pro-rata basis. The excess money with application was adjusted against amount due on allotment.
A to whom 600 shares were allotted paid only application money. On his failure to pay allotment and first call, his shares were forfeited and reissued for ₹ 9 per share as fully paid shares. Find call was received from remaining shareholders.
Pass necessary journal entries in the books of ABC Ltd.

The solution of Question 78 Chapter 1 of +2 Part-2: –

Journal

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		1,86,000
	To Equity share application A/c				1,86,000
	(Being application money received on 93000 shares @ ₹ 2 each)
	Equity shares application A/c	Dr.		1,86,000
	To Equity shares capital A/c				1,50,000
	To Equity share allotment A/c				30,000
	To Bank A/c				6,000
	(Being application money transferred to share capital a/c and share allotment & balance amount on 3000 shares refunded)
	Equity share allotment A/c	Dr.		4,50,000
	To Equity shares capital A/c				2,25,000
	To Securities premium reserve A/c				2,25,000
	(Being allotment money due on 75,000 share @ ₹ 6 per share including 3 premium)
	Bank A/c	Dr.		4,16,640
	To Equity share allotment A/c				4,16,640
	(Being received on allotment money)
	Equity share 1st call A/c	Dr.		2,25,000
	To Equity shares capital A/c				2,25,000
	(Being first call money due on 75,000 shares @ ₹ 3 per shares)
	Bank A/c	Dr.		2,23,200
	To Equity shares 1st call A/c				2,23,200
	(Being first call money received on 74400 shares @ ₹ 3 per share)
	Equity share capital A/c	Dr.		4800
	Securities premium A/c	Dr.		1800
	To Equity share allotment A/c				3360
	To Equity first call A/c				1800
	To Share forfeited A/c				1440
	(Being 600 shares of shareholder A forfeited due to non-payment of allotment and first call money)
	Equity share second & final call A/c	Dr.		1,48,800
	To Equity shares capital A/c				1,48,800
	(Being second & final call money due on 74400 shares @ ₹ 2 per share)
	Bank A/c	Dr.		1,48,800
	To Equity share second call A/c				1,48,800
	(Being second & final call money received on74400 shares @ ₹ 2 per share)
	Bank A/c	Dr.		5400
	Share forfeited A/c	Dr.		600
	To Equity share capital A/c				6000
	(Being 600 forfeited shares reissued @ ₹ 9 per share as fully paid up)
	Share forfeited A/c	Dr.		840
	To capital reserve A/c				840
	(Being profit on 600 forfeited transferred to capital reserve A/c)

Working Note:

	Shares applied	Shares allotted
Lot 1	90,000	75,000
Lot 2	3,000	Nil
	93,000	75,000

1 Table showing adjustment of excess amount received on application.

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	Lot 1	Lot 2	total
No. of shares applied	90,000	3,000	93,000
Less: no. of shares allotted	7500	Nil	75,000
Over subscription	15,000	3000	18,000

	₹	₹	₹
Excess amount received on application	30,000	6,000	36,000
Less: amount adjusted on allotment	30,000	Nil	30,000
Refunded to be made	Nil	6000	6000

2 Net Amount received on allotment

No. of share allotted to Mr. A shareholder =600 share
No. of shares applied by Mr. A shareholder = 600*9000/75000	720share
	₹
Application money received 720 shares = 720*2	1440
Less: actual application amount on 600 shares = 600*2	1200
	240
	₹
Allotment amount due Mr. It on 600 shares 600*6	3600
Less: Excess application money adjusted	240
Amount not paid by Mr. A	3360
Total amount due on allotment 75000*6	4,50,000
Less: application money already adjusted	30,000
	420000
Less: amount not paid by Mr. A	3360
Net amount received on allotment	416640