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

Question no -83 Chapter no-1 Unimax Class-12 Part-II
Question no -83 Chapter no-1 Unimax Class-12 Part-II

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

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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 callBalance

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.DebitCredit
 Bank A/cDr. 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/cDr. 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/cDr. 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/cDr. 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/cDr. 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/cDr. 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/cDr. 10,400 
 Securities premium reserve A/cDr. 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/cDr. 4,000 
 Share forfeited A/cDr. 1,000 
 To share capital A/c   5,000
 (Being 500 shares reissued @ 8)    
 Share forfeited A/cDr.  1,600 
 To capital reserve A/c   1,600
 (Being forfeited amount transfer to capital reserve)    

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