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Question no 82 Chapter 1- Class 12 Part 2 Unimax
Gopal Limited’ invited application for issuing 70,000 equity shares of 10 each at a premium of 10 per share. The amount was payable as follows:
| On application & allotment | ₹ 10 per share (including 5 premium) |
| On first & final call | ₹ 10 per share (including 5 premium) |
Applications for 1,00,000 shares were received. Application for 20,000 shares were rejected and application money was refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess application money received from applicants to whom shares were allotted on pro-rata basis was adjusted towards sums due on first and final call. All calls were made and were duly received except the first and final call money from Kamal who had applied for 1,800 shares. His shares were forfeited. The forfeited shares were reissued at ₹ 9 per shares as fully paid up.
Pass necessary journal entries for the above transactions in the books of Gopal Limited:
The solution of Question no 82 Chapter 1- Class 12 Part 2 Unimax: –
Journal
| Date | Particulars | L.F. | Debit | Credit | |
| Bank A/c | Dr. | 10,00,000 | |||
| To Equity share application & allotment A/c | 10,00,000 | ||||
| (Being money received on 1,00,000 application @ ₹ 10 each including ₹ 5 premium) | |||||
| Equity shares application & allotment A/c | Dr. | 10,00,000 | |||
| To Equity shares capital A/c | 3,50,000 | ||||
| To Securities premium reserve A/c | 3,50,000 | ||||
| To Equity share 1st & final call A/c | 1,00,000 | ||||
| To Bank A/c | 2,00,000 | ||||
| (Being application money transferred to capital & SHARE 1ST & final call A/c & Extra amount refund) | |||||
| Share 1st & final call A/c | Dr. | 7,00,000 | |||
| To Equity shares capital A/c | 3,50,000 | ||||
| To Securities premium reserve A/c | 3,50,000 | ||||
| (Being 1st & final call money due on 70,000 shares @ ₹ 10 including ₹ 5 premium) | |||||
| Bank A/c | Dr. | 5,86,500 | |||
| To Equity share 1st & final call A/c | 5,86,500 | ||||
| (Being amount received on final call except on 1,575 shares) | |||||
| Share capital A/c | Dr. | 15,750 | |||
| Securities premium reserve A/c | Dr. | 7,875 | |||
| To Share forfeited A/c | 10,125 | ||||
| To Share first & final call A/c | 13,500 | ||||
| (Being 1,575 shares forfeited for non-payment first call and final call) | |||||
| Bank A/c | Dr. | 14,175 | |||
| Share forfeited A/c | Dr. | 1,575 | |||
| To share capital A/c | 15,750 | ||||
| (Being 1,575 shares reissued @ 9) | |||||
| Share forfeited A/c | Dr. | 8,550 | |||
| To capital reserve A/c | 8,550 | ||||
| (Being forfeited amount transfer to capital reserve) | |||||
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