Question no 79 Chapter 1 - UNIMAX Class 12 Part 2

Question No 79 Chapter 1 – UNIMAX Class 12 Part 2 – 2021

Table of Contents

The solution of Question 79 Chapter 1 of +2 Part-2: –

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

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

Video Tag:

M/s Reliable investment issue a prospectus inviting application of ₹ 4,000 equity share of ₹ 20 each at a premium of ₹ 4 per shares payable as under:

On application	₹ 4 per share
On allotment	₹ 10 per share (including premium)
On first	₹ 6 per share
On second call	₹ 4 per share

Application were received for 6,000 shares and allotment was made pro-rata to the applicants of 4,800 shares, the applications for remaining shares being refused. Money overpaid on application was used on account of sums due on allotment.
Harish to whom 80 shares were allotted were allotted, could not pay the allotment money and on his subsequent failure to pay the first call his shares were forfeited after the first call.
Mukesh to whom 120 shares were allotted, failed to pay the two calls and hid shares were forfeited after the second call.
Of the shares forfeited, 160 share were sold to Suresh credited as fully paid at ₹ 10 per shares, all of Harish’s forfeited shares being included.
Pass journal entries in the books of the company to record the above transactions.

The solution of Question 79 Chapter 1 of +2 Part-2: –

Journal
Books of Sakshi

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		24,000
	To Equity share application A/c				24,000
	(Being application money received on 6000 shares @ ₹ 4 each)
	Equity Share application A/c	Dr.		24,000
	To Equity share capital A/c				16,000
	To Equity share allotment A/c				3200
	To bank A/c				4800
	(Being application money transferred to capital a/c on 4000 shares and share allotment on 800 shares & balance amount on 1200 shares refunded)
	Equity share allotment A/c	Dr.		40,000
	To Equity shares capital A/c				24,000
	To Securities premium reserve A/c				16,000
	(Being allotment money due on 4,000 equity shares @ ₹ 10 per share including 4 premium)
	Bank A/c	Dr.		36,064
	To Equity share allotment A/c				36,064
	(Being received on allotment money)
	Equity share 1st call A/c	Dr.		24,000
	To Equity shares capital A/c				24,000
	(Being first call money due on 4000 equity shares @ ₹ 6 per shares)
	Bank A/c	Dr.		22,800
	To Equity shares 1st call A/c				22,800
	(Being first call money received on 3800 shares @ ₹ 6 per share)
	Equity share capital A/c	Dr.		1280
	Securities premium A/c	Dr.		320
	To Equity share allotment A/c				736
	To Equity first call A/c				480
	To Share forfeited A/c				384
	(Being 80 shares of Mr. Harish forfeited due to non-payment of allotment and first call money)
	Equity share second call A/c	Dr.		15,680
	To Equity shares capital A/c				15,680
	(Being second call money due on 3920 equity shares @ ₹ 4 per share)
	Bank A/c	Dr.		15,200
	To Equity share second call A/c				15,200
	(Being second call money received on 3800 equity shares @ ₹ 4 per share)
	Equity share capital A/c	Dr.		15,200
	To Equity share first call A/c				720
	To Equity share forfeited A/c				1200
	To Equity share second call A/c				480
	(Being 120 equity shares of Mukesh forfeited due to non-payment of first call and second call)
	Bank A/c	Dr.		2,880
	Share forfeited A/c	Dr.		320
	To Equity share capital A/c				32,000
	(Being 160 forfeited shares reissued @ ₹ 18 per share as fully paid up)
	Share forfeited A/c	Dr.		864
	To capital reserve A/c				864
	(Being forfeited amount transfer to capital reserve)

Working Note:

	Shares applied	Shares allotted
Lot 1	4800	4000
Lot 2	1200	nil
	6000	4000

1 Table showing adjustment of excess amount received on application.

	Lot 1	Lot 2	total
No. of shares applied	4800	1200	6000
Less: no. of shares allotted	4800	nil	4000
Over subscription	800	1200	2000

	₹	₹	₹
Excess amount received on application @ ₹4 per share	3200	4800	8000
Less: amount adjusted on allotment @ ₹10 per share	3200	nil	3200
Refunded to be made	nil	4800	4800

2 Calculation of net amount Received on allotment

No. of shares allotted to Mr. Harish =80
No. of shares Applied by Mr. Harish = 800 x 4800/4000	=96 per shares
	₹
Application money received from Mr. Harish on 96 shares=(96 x 6)	384
Less: actual application amount on 80 shares (80 x 4)	320
Excess Application money Adjustment towards Allotment	64
	₹
Amount due From Mr. Harish on allotment = 80 x 10 =800
Less: Excess Application money adjusted = 64
Amount not paid by Mr. Harish	736
	₹
Total amount due on allotment = 4000 x 10 =	40,000
Less : Application money Adjusted	32000
	36800
Less : Amount not paid by Mr. Harish	736
Net Amount received on allotment	36064

3 Calculation of Net Amount received on first call

	₹
Total amount due on first call (4000 x 6)	24000
Less : Calls in Arrear (₹)
Mr. Harish (80 shares x 6)	480
Mr. Mukesh (120 shares x 6)720	1200
Net amount received on first call	22800

4 Calculation of amount to be transferred to Capital Reserve A/c

Amount forfeited on 120 share held by of Mr. Mukesh =₹ 1200
	₹
Amount forfeited on 80 share held by of Mr. Mukesh =₹ 1200/120 x80 =	800
Amount forfeited on 80 share of Mr. Mukesh =	₹ 800
Amount forfeited on 80 share of Mr. Harish =	384
Total Amount forfeited on 160 shares =	1184
Less : Discount Allowed on Reissued share =	320
Balance Credited to Capital Reserve A/c	864