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Question no 81 Chapter 1- Class 12 Part 2 Unimax
Amrit Ltd. issued a prospectus inviting applications for 20,000 equity shares of ₹ 10 each at a premium of ₹ 5 pre share, payable as:
| On application | ₹ 4 per share (including 1 premium) |
| On allotment | ₹ 4 per share (including 2 premium) |
| On first | ₹ 4 per share (including 1 premium) |
| On second & final call | ₹ 3 per share (including 1 premium) |
Application were received for 30,000 equity shares and allotment was made on pro-rata basis.
(1) Amit, who applied for 600 equity shares failed to pay the allotment money and on his subsequent failure to pay the first call, his equity shares were forfeited.
(2) Sumit, who was allotted 1,200 equity shares failed to pay the two call such on his such failure, his equity shares were forfeited.
Of the equity share forfeited, 1,000 equity shares were reissued (including whole of Amit’s equity shares) to Ravi as fully paid up for ₹ 8 per share. Pass necessary journal entries in the books of the company.
The solution of Question no 81 Chapter 1- Class 12 Part 2 Unimax: –
Journal
| Date | Particulars | L.F. | Debit | Credit | |
| Bank A/c | Dr. | 1,20,000 | |||
| To Equity share application A/c | 1,20,000 | ||||
| (Being money received on 30,000 applications @ ₹ 4 each) | |||||
| Equity shares application A/c | Dr. | 1,20,000 | |||
| To Equity shares capital A/c | 20,000 | ||||
| To Securities premium reserve A/c | 40,000 | ||||
| To Equity share allotment A/c | 60,000 | ||||
| (Being application money transferred to capital & balance transferred to share allotment) | |||||
| Equity share allotment A/c | Dr. | 80,000 | |||
| To Equity shares capital A/c | 40,000 | ||||
| To Securities premium reserve A/c | 40,000 | ||||
| (Being allotment money due on 20,000 shares @ ₹ 6 including 2 premium) | |||||
| Bank A/c | Dr. | 39,200 | |||
| To Equity share allotment A/c | 39,200 | ||||
| (Being amount received on allotment money except on 400 shares) | |||||
| Equity share 1st call A/c | Dr. | 80,000 | |||
| To Equity shares capital A/c | 60,000 | ||||
| To Securities premium reserve A/c | 20,000 | ||||
| (Being amount due on first call on 20,000 shares @ ₹ 4 each with including 1 premium) | |||||
| Bank A/c | Dr. | 76,600 | |||
| To Equity shares 1st call A/c | 76,600 | ||||
| (Being amount received on 1st call except on 350 shares) | |||||
| Equity share second and final call A/c | Dr. | 58,800 | |||
| To Equity shares capital A/c | 39,200 | ||||
| To Securities premium reserve A/c | 19,600 | ||||
| (Being amount due on final call on 19,600 shares @ ₹ 3 each including 1 premium ) | |||||
| Bank A/c | Dr. | 55,200 | |||
| To Equity share second & final call A/c | 55,200 | ||||
| (Being amount received on final call except on 1,200 shares) | |||||
| Equity share capital A/c | Dr. | 15,200 | |||
| Securities premium reserve A/c | Dr. | 3,600 | |||
| To Equity share allotment A/c | 800 | ||||
| To Equity share first call A/c | 6,400 | ||||
| To Equity share forfeited A/c | 8,000 | ||||
| To Equity share 2nd & final call A/c | 3,600 | ||||
| (Being 1,600 shares forfeited for non-payment of allotment & 1st & final call) | |||||
| Bank A/c | Dr. | 8,000 | |||
| Share forfeited A/c | Dr. | 2,000 | |||
| To share capital A/c | 10,000 | ||||
| (Being 1,000 shares reissued @ 8) | |||||
| Share forfeited A/c | Dr. | 3,000 | |||
| To capital reserve A/c | 3,000 | ||||
| (Being forfeited amount transfer to capital reserve) | |||||
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