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Question no 71 Chapter 1- Class 12 Part 2 Unimax
A company issued for public subscription 50,000 equity shares of ₹ 20 each at a premium of ₹ 4 per share, payable as under:
| On application | ₹ 4 per share |
| On allotment | ₹ 10 per share (including premium) |
| On first & final call | ₹ 10 per share |
Application were received for 75,000 equity shares. The shares were allotted pro-rata to application of 60,000 shares, the remaining applications being rejected. Money overpaid on allotment was utilized towards the sum due on allotment.
‘A’ to whom 2,000 shares were allotted failed to pay the allotment money and the call money ‘B’ who was allotted 2,500 shares failed to pay the call money. These shares were subsequently forfeited after the first and final call was mode. The shares forfeited from ‘B’ were allotted to ‘X’ at ₹ 10 per shares fully paid up. Of the shares forfeited from ‘A’ 1,500 shares were reissued to ‘Y’ at ₹ 22 per share.
Pass necessary journal entries to record the above transactions in the books of the company and show the working notes clearly.
The solution of Question no 71 Chapter 1- Class 12 Part 2 Unimax: –
Journal
| Date | Particulars | L.F. | Debit | Credit | |
| Bank A/c | Dr. | 3,00,000 | |||
| To share application A/c | 3,00,000 | ||||
| (Being share application money received on 75,000 shares @ ₹ 4 each) | |||||
| Share application A/c | Dr. | 3,00,000 | |||
| To share capital A/c | 2,00,000 | ||||
| To share allotment A/c | 40,000 | ||||
| To bank A/c | 60,000 | ||||
| (Being share application A/c transferred to share capital A/c & balance refunded) | |||||
| Shares allotment A/c | Dr. | 5,00,000 | |||
| To shares capital A/c | 3,00,000 | ||||
| To securities premium A/c | 2,00,000 | ||||
| (Being share allotment money due on 50,000 shares @ 10 each including premium ₹ 4 each) | |||||
| Bank A/c | Dr. | 4,41,600 | |||
| To shares allotment A/c | 4,41,600 | ||||
| (Being allotment money received except on 2000 shares) | |||||
| Share first call A/c | Dr. | 5,00,000 | |||
| To shares capital A/c | 5,00,000 | ||||
| (Being first & final call due on 50,000 shares @ ₹ 10 each including premium ₹ 4 each) | |||||
| Bank A/c | Dr. | 4,55,000 | |||
| To Share first & final call A/c | 4,55,000 | ||||
| (Being first & final call money received exception of 4500 share @ ₹ 10 each) | |||||
| Share capital A/c | Dr. | 40,000 | |||
| Securities premium reserve A/c | Dr. | 8,000 | |||
| To Share allotment A/c | 18,400 | ||||
| To Share first & final call A/c | 20,000 | ||||
| To Share forfeited A/c | 9,600 | ||||
| (Being 2000 shares forfeited due to non-payment of allotment and calls money) | |||||
| A. | Share capital A/c | Dr. | 50,000 | ||
| To Share first & final call A/c | 25,000 | ||||
| To Share forfeited A/c | 25,000 | ||||
| (Being 2500 shares forfeited for non-payment of final call) | |||||
| Bank A/c | Dr. | 45,000 | |||
| Share forfeited A/c | Dr. | 5,000 | |||
| To Share capital A/c | 50,000 | ||||
| (Being 2500 share forfeited were reissued at ₹ 18 each fully paid up) | |||||
| Bank A/c | Dr. | 33,000 | |||
| To Share capital A/c | 30,000 | ||||
| To Securities premium A/c | 3,000 | ||||
| (Being 1500 shares reissued to Y @ ₹ 22 per share) | |||||
| Share forfeited A/c | Dr. | 27,200 | |||
| To capital reserve A/c | 27,200 | ||||
| (Being balance of share forfeited a/c transferred to capital reserve A/c) | |||||
Working Note:
| Shares applied | Shares allotted | |
| Lot 1 | 27,200 | Nil |
| Lot 2 | 60,000 | 50,000 |
| 75,000 | 50,000 |
1 Table showing adjustment of excess amount received on application.
| Lot 1 | Lot 2 | total | |
| No. of shares applied | 15,000 | 60,000 | 75,000 |
| Less: no. of shares allotted | Nil | 50,000 | 50,000 |
| Over subscription | 15,000 | 10,000 | 25,000 |
| ₹ | ₹ | ₹ | |
| Excess amount received on application @ ₹ 4 | 60,000 | 40,000 | 300000 |
| Less: amount adjusted on allotment | Nil | 40,000 | 40,000 |
| Refunded to be made | 60,000 | Nil | 60000 |
2 Calculation of unpaid amount on allotment on 2000 shares held by A.
| No. of shares applied by A 2400 shares (2000*6/5) | |
| ₹ | |
| Amount received on application @ ₹ 4 (2400*4) | 9600 |
| Less: actual application amount on 2000 shares allotted to A (2000*4) | 8000 |
| Amount to be adjusted on allotment | 1600 |
| ₹ | |
| Amount due on allotment from A (2000*10) | 20,000 |
| Less: amount already received now to be adjusted | 1600 |
| Unpaid amount on 100 shares of Sunder on allotment | 18,400 |
3 Net Amount received on allotment
| ₹ | |
| Total amount due on allotment (50,000 share* ₹10) | 5,00,000 |
| Less: amount already adjusted an allotment | 40,000 |
| 4,60,000 | |
| Less: unpaid amount on Sunder’s shares | 18,400 |
| Net amount received on allotment | 4,41,600 |
4 Calculation of amount to be transferred to Capital Reserve
| ₹ | |
| Amount forfeited on 2500 shares of B | 25,000 |
| Less: Discount on reissue (2500*2) | 5,000 |
| 20,000 | |
| ₹ | |
| 9600 | |
| Amount forfeited on 2000 shares of A on 1500 shares amount forfeited | 7200 |
| Less discount on reissued of shares | Nil |
| 7200 | |
| Net amount to be transferred to capital reserve (20,000+7,200) | 27,200 |
End of Solution
Check Out the Solution of all questions for this chapter:
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Question No 1 Chapter 1 – Unimax Class 12 Part 2 – 2021
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1. Comprehensive Solutions for All Chapters of Advanced Accountancy Part 1 Class 12 by Unimax
UnimaxSolutions.in offers a comprehensive solution for students studying Advanced Accountancy Part 1 in Class 12. With their meticulously curated study material, students can access comprehensive solutions to all the questions in each chapter. By selecting the chapter name from the study material, students can easily navigate through the topics and find detailed explanations and step-by-step solutions to the problems presented in that section. Whether it’s understanding complex accounting concepts, mastering calculation techniques, or analyzing financial statements, Unimax provides a valuable resource to aid students in their learning journey. With these comprehensive solutions at their disposal, students can enhance their understanding, clarify doubts, and improve their problem-solving skills in Advanced Accountancy, ensuring they are well-prepared for their Class 12 examinations.
- Chapter No. 1 – Accounts of Non-Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
2. Comprehensive Solutions for All Chapters of Advanced Accountancy Part 2 Class 12 by Unimax
UnimaxSolutions.in presents an exceptional resource for students studying Advanced Accountancy Part 2 in Class 12. With their comprehensive study material, students can conveniently access extensive solutions to all the questions in each chapter. By simply selecting the desired chapter from the study material, students can effortlessly navigate through the topics and gain access to detailed explanations and step-by-step solutions to every problem presented in that particular section. Whether it involves understanding intricate accounting principles, honing calculation techniques, or analyzing complex financial statements, Unimax provides a valuable tool to support students in their learning journey. Equipped with these comprehensive solutions, students can enhance their comprehension, resolve any uncertainties, and strengthen their problem-solving abilities in Advanced Accountancy, empowering them to excel in their Class 12 examinations with confidence.
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Issue of Debentures
- Chapter No. 3 – Redemption of Debentures
- Chapter No. 4 – Financial Statements of a Company (Balance Sheet Only)
- Chapter No. 5 -Financial Statement Analysis
- Chapter No. 6 – Tools/Methods of Financial Analysis
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
Punjab School Education Board (PSEB) Solutions of Usha Publication.
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