Question

Chitinoor Ltd. invited applications for 2,00,000 shares of ₹ 10 each payable ₹ 3 on application, ₹ 5 on allotment (including ₹ 1 premium) and balance on call. Applications were received for 3,00,000 shares out of which 20% applications were rejected and remaining were allotted on pro-rata basis. Rohan, an applicant of 12,000 shares failed to pay allotment money and Mohan holding 8,000 shares paid the entire money along with allotment. Subsequently the call was made, all the money was duly received except from Rohan. Later on, company issued a notice to Rohan to pay the balance in 15 days failing which his shares would be forfeited.

Rohan cleared his dues within the stipulated time period.

Journalise.

Answer 1

Journal Entries
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
I.	Bank A/c    ...Dr.		9,00,000	-
	To Share Application A/c		-	9,00,000
	(Being application amount received for 3,00,000 shares)
II.	Share Application A/c   ...Dr.		9,00,000	-
	To Share Capital A/c		-	6,00,000
	To Share Allotment A/c		-	1,20,000
	To Bank A/c		-	1,80,000
	(Being application money adjusted and surplus money refunded)
III.	Share Allotment A/c   ...Dr.		10,00,000	-
	To Share Capital A/c		-	8,00,000
	To Securities Premium A/c		-	2,00,000
	(Being allotment amount due)
IV.	Bank A/c   ...Dr.		8,60,000	-
	Calls in Arrears A/c   ...Dr.		44,000	-
	To Share Allotment A/c		-	8,80,000
	To Calls in advance A/c		-	24,000
	(Being allotment money received with calls in advance and unpaid amount transferred to Call advance and calls in arrears A/c)
V.	Share First Call A/c   ...Dr.		6,00,000	-
	To Share Capital A/c		-	6,00,000
	(Being Call money due)
VI.	Bank A/c     ...Dr.		5,46,000	-
	Calls in Advance A/c   ...Dr.		24,000	-
	Calls in Arrears A/c   ...Dr.		30,000	-
	To Share First Call A/c		-	6,00,000
	(Being Call money received except on 10,000 shares and advance adjusted)
VII.	Bank A/c   ...Dr.		74,000	-
	To Calls in Arrears A/c		-	74,000
	(Being Calls in arrears received)