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Question no 84 Chapter 1- Class 12 Part 2 Unimax
Mukta Ltd. invited applications for issuing 1,00,000 equity shares of ₹ 10 each. The shares were issued at a premium of ₹ 20 per share. The amount was payable as follows:
| On application & allotment | ₹ 14 per share (including 10 premium) |
| On first call | ₹ 8 per share (including 5 premium) |
| On final call | ₹ 8 per share (including 5 premium) |
Application for 96,000 shares were received. Sunil, a shareholder holding 7,000 shares, failed to pay both the calls and Amit, a holder of 5,000 shares, did not pay the final call. Shares of Sunil and Amit were forfeited. Of he forfeited shares, 8,000 shares, including all the shares of Sunil, were reissued to Maaya at ₹ 8 per share fully paid up.
Pass necessary journal entries for the above transactions in the books of Mukta Ltd.
The solution of Question 84 Chapter 1 of +2 Part-2: –
Journal
| Date | Particulars | L.F. | Debit | Credit | |
| Bank A/c | Dr. | 13,44,000 | |||
| To Equity share application & allotment A/c | 13,44,000 | ||||
| (Being money received on 96,000 application @ ₹ 14 each including ₹ 10 premium) | |||||
| Equity shares application & allotment A/c | Dr. | 13,44,000 | |||
| To Equity shares capital A/c | 3,84,000 | ||||
| To Securities premium reserve A/c | 9,60,000 | ||||
| (Being application money transferred to capital A/c) | |||||
| Equity share 1st call A/c | Dr. | 7,68,000 | |||
| To Equity shares capital A/c | 2,88,000 | ||||
| To Securities premium reserve A/c | 4,80,000 | ||||
| (Being amount received on allotment except on 7,000 shares) | |||||
| Bank A/c | Dr. | 7,12,000 | |||
| To Equity share 1st call A/c | 7,12,000 | ||||
| (Being amount received on allotment except on 7,000 shares) | |||||
| Equity share final call A/c | Dr. | 7,68,000 | |||
| To Equity shares capital A/c | 2,88,000 | ||||
| To Securities premium reserve A/c | 4,80,000 | ||||
| (Being amount due on first call on 96,000 shares @ ₹ 8 each including ₹ 5 premium) | |||||
| Bank A/c | Dr. | 6,72,000 | |||
| To Equity shares final call A/c | 6,72,000 | ||||
| (Being amount on final call received except 12,000 shares) | |||||
| Equity share capital A/c | Dr. | 1,20,000 | |||
| Equity securities premium reserve A/c | Dr. | 95,000 | |||
| To Equity forfeited A/c | 63,000 | ||||
| To Equity share first call A/c | 56,000 | ||||
| To Equity share second call A/c | 96,000 | ||||
| (Being 12,000 shares forfeited for non-payment first call and final call) | |||||
| Bank A/c | Dr. | 64,000 | |||
| Share forfeited A/c | Dr. | 16,000 | |||
| To share capital A/c | 80,000 | ||||
| (Being 8,000 shares reissued @ 8) | |||||
| Share forfeited A/c | Dr. | 19,000 | |||
| To capital reserve A/c | 19,000 | ||||
| (Being forfeited amount transfer to capital reserve) | |||||
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