Question

Amrit Ltd. issued 50,000 shares of ₹  10 each at a premium of ₹ 2 per share payable as ₹ 3 on application, ₹ 4 on allotment (including premium) , ₹ 2 on first call and the remaining on second call.
Applications were received for 75,000 shares and pro rata allotment was made to all the applicants.
All moneys due were received except allotment and first call from Sonu who applied for 1,200 shares. All his shares were forfeited. The forfeited shares were reissued for ₹ 9,600. Final call was not made . Pass necessary Journal entries. 

Answer 1

Journal

 

Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c	Dr.		2,25,000
	To Share Application A/c (75,000×3)(75,000×3)				2,25,000
	(Application money received)
	Share Application  A/c	Dr.		2,25,000
	To Share Capital A/c (50,000×3)(50,000×3)				1,50,000
	To Share Allotment A/c				75,000
	(Application money adjusted on allotment)
	Share Allotment A/c (50,000×4)(50,000×4)	Dr.		2,00,000
	To Share Capital A/c				1,00,000
	To Securities Premium A/c				1,00,000
	(Allotment money due on 50,000 shares)
	Bank A/c	Dr.		1,23,000
	Calls-in-Arrears A/c	Dr.		2,000
	To Share Allotment A/c				1,25,000
	(Allotment money received)
	Share First Call  A/c (50,000×2)(50,000×2)	Dr.		1,00,000
	To Share Capital A/c				1,00,000
	(First call money due on 50,000 shares)
	Bank A/c	Dr.		98,400
	Calls-in-Arrears A/c (800×2)(800×2)	Dr.		1,600
	To Share First Call A/c				1,00,000
	(Call money received)
	Equity Share Capital A/c (800×7)(800×7)	Dr.		5,600
	Securities Premium A/c (800×2)(800×2)	Dr.		1,600
	To  Calls-in-Arrears A/c				3,600
	To Share Forfeiture A/c (1,200×3)(1,200×3)				3,600
	(800 shares forfeited for non-payment of allotment and call money)
	Bank A/c	Dr.		9,600
	To Share Capital A/c				5,600
	To Securities Premium A/c				4,000
	(Shares reissued at a premium)
	Share Forfeiture A/c	Dr.		3,600
	To Capital Reserve A/c				3,600
	(Profit on reissue transferred to capital reserve)

Working Notes:

WN1 Calculation of No. of Shares Allotted to Sonu

Shares app;ied by Sonu = 1200

Shares alloted to Sonu = `1200 xx 50000/75000 = 800`

WN2 Calculation of Amount Received on Allotment 

Total allotment due on Sonu's shares = Rs 3200 (800 × 4)

Excess application money from Sonu adjusted towards allotment = (1200 × 3)- (800 × 3)= Rs 1200

Amount not received from Sonu = Rs 2000

Total Amount due on Allotment
@ 50000 shares                                           = 20000

Less : Excess application money adjusted   = 75000

Balance amount due = 125000

Less : Amount not received from Sonu       = 2000  

Amount received on allotment                   = 123000