Question no 83 Chapter 1 - UNIMAX Class 12 Part 2

Question No 83 Chapter 1 – UNIMAX Class 12 Part 2 – 2021

Table of Contents

The solution of Question 83 Chapter 1 of +2 Part-2: –

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

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

Sumit Ltd. invited applications for issuing 80,000 equity shares of ₹ 10 each at a premium of ₹ 6 per share. The amount was payable as follows:

On application	₹ 4 per share (including 1 premium)
On allotment	₹ 6 per share (including 3 premium)
On first & final call	Balance

Application for 1,60,000 shares were received. Application for 40,000 shares were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Sunny holding 400 shares failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards the final call was made. Money, who has applied for 1,200 shares, failed to pay the final call. His shares were also forfeited. Out of the forfeited shares, 500 shares were reissued at ₹ 8 per shares fully paid up. The reissued shares included all the forfeited shares of Sunny.
Pass necessary journal entries for the above transactions in the books of Sumit Ltd

The solution of Question 83 Chapter 1 of +2 Part-2: –

Journal

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		6,40,000
	To Equity share application A/c				6,40,000
	(Being money received on 96,000 application @ ₹ 4 each including ₹ 1 premium)
	Equity shares application A/c	Dr.		6,40,000
	To Equity shares capital A/c				2,40,000
	To Securities premium reserve A/c				80,000
	To Equity share allotment A/c				1,60,000
	To Bank A/c				1,60,000
	(Being application money transferred to capital & share allotment account & Extra amount refund)
	Equity share allotment A/c	Dr.		4,80,000
	To Equity shares capital A/c				2,40,000
	To Securities premium reserve A/c				2,40,000
	(Being allotment money due on 80,000 shares @ ₹ 6 including 3 premium)
	Bank A/c	Dr.		3,18,400
	To Equity share allotment A/c				3,18,400
	(Being amount received on allotment money except on 400 shares)
	Equity share 1st & final call A/c	Dr.		4,77,600
	To Equity shares capital A/c				3,18,400
	To Securities premium reserve A/c				1,59,200
	(Being 1st & final call money due on 79,600 shares)
	Bank A/c	Dr.		4,72,800
	To Equity shares 1st & final call A/c				4,72,800
	(Being amount received on 1st & final call except on 800 shares)
	Share capital A/c	Dr.		10,400
	Securities premium reserve A/c	Dr.		2,800
	To Share allotment A/c				1,600
	To Share first & final call A/c				4,800
	To Share forfeited A/c				6,800
	(Being 1,200 shares forfeited for non-payment of allotment & 1st & final call)
	Bank A/c	Dr.		4,000
	Share forfeited A/c	Dr.		1,000
	To share capital A/c				5,000
	(Being 500 shares reissued @ 8)
	Share forfeited A/c	Dr.		1,600
	To capital reserve A/c				1,600
	(Being forfeited amount transfer to capital reserve)