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

Question no -79 Chapter no-1 Unimax Class-12 Part-II
Question no -79 Chapter no-1 Unimax Class-12 Part-II


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


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: –

 Books of Sakshi

Date  Particulars
 Bank A/cDr. 24,000 
 To Equity share application A/c   24,000
 (Being application money received on 6000 shares @ ₹ 4 each)    
 Equity Share application A/cDr. 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/cDr. 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/cDr. 36,064 
 To Equity share allotment A/c  36,064
 (Being received on allotment money)    
 Equity share 1st call A/cDr. 24,000 
 To Equity shares capital A/c  24,000
 (Being first call money due on 4000 equity shares @ ₹ 6 per shares)   
 Bank A/cDr. 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/cDr. 1280 
 Securities premium A/cDr.  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/cDr. 15,680 
 To Equity shares capital A/c   15,680
 (Being second call money due on 3920 equity shares @ ₹ 4 per share)    
 Bank A/cDr.  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/cDr. 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/cDr. 2,880 
 Share forfeited A/cDr.  320 
 To Equity share capital A/c   32,000
 (Being 160 forfeited shares reissued @ ₹ 18 per share as fully paid up)    
 Share forfeited A/cDr. 864 
 To capital reserve A/c   864
 (Being forfeited amount transfer to capital reserve)    

Working Note:

 Shares appliedShares allotted
Lot 148004000
Lot 21200nil

1 Table showing adjustment of excess amount received on application.


 Lot 1Lot 2total
No. of shares applied480012006000
Less: no. of shares allotted4800nil4000
Over subscription80012002000
Excess amount received on application @ ₹4 per share320048008000
Less: amount adjusted on allotment @ ₹10 per share 3200nil3200
Refunded to be madenil48004800

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 Allotment64
Amount due From Mr. Harish  on allotment = 80 x 10 =800 
Less: Excess Application money adjusted = 64 
Amount not paid by Mr. Harish736
Total amount due on allotment = 4000 x 10 =40,000
Less : Application money Adjusted 32000
Less : Amount not paid by Mr. Harish736
Net Amount received on allotment36064

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)7201200
Net amount received on first call22800

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/c864

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