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प्रश्न
KS Ltd invited application for issuing 1, 60,000 equity shares of Rs.10 each at a premium of 6 per share. The amount was payable as follows;
On Application Rs.4 per share (including premium Rs.1 per share)
On Allotment Rs.6 per share (including premium Rs.3 per share)
On First and Final Call – Balance
Application for 3, 20,000 shares were received. Applications for 80,000 share were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with application was adjusted towards surns due on allotment. Jain holding 800 shares failed to pay the allotment money his shares were forfeited immediately after allotment. Afterwards the final call was made. Gupta who has applied for 1200 shares failed to pay the final call. These shares were forfeited. Out of the forfeited shares 1000 shares were re-issued at 8 per share fully paid up. The re-issued shares included all the forfeited shares of Jain
Pass necessary journal entries for the above transactions in the books of KS Ltd.
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उत्तर
Books of KS Ltd
Journal
| Date | Particulars | L.F. | Dr.(Rs.) | Cr.(Rs.) |
|
Bank A/c Dr To Equity Share Application A/c (Being amount received on application for 3,20,000)
Equity Share Application A/c Dr To Equity Share Capital A/c To Securities Premium A/c To Equity Share Allotment A/c To Bank A/c (Being amount of application transferred to Share Capital and excess money is adjusted towards allotment)
Equity Share Allotment A/c Dr To Equity Share Capital A/c To Securities Premium A/c (Being amount due on allotment)
Bank A/c (9,60,000 – 3,20,000 - 3,200) Dr To Equity Share Allotment A/c (Being amount received on Share Allotment)
Share Capital A/c Dr Securities Premium A/c Dr To Share Forfeiture A/c To Share Allotment A/c (Being 800 shares of Jain are forfeited due to non – payment of allotment money)
Equity Share First Call A/c Dr To Equity Share Capital A/c To Securities Premium A/c (Being amount due on first and final call on 1,59,200 shares)
Bank A/c (9,55,200 – 4,800) Dr To Equity Share First and Final Call A/c (Being amount received on first and final call)
Equity Share Capital A/c Dr Securities Premium A/c Dr To Equity Share Forfeiture A/c To Equity Share First and Final Call A/c (Being Gupta’s shares forfeited)
Bank A/c Dr Share Forfeiture A/c Dr To Equity Share Capital A/c (Forfeited shares were re-issued at `8 per share fully paid up)
Equity Share Forfeiture A/c Dr To Capital Reserve A/c (Being excess amount on forfeiture is transferred to capital reserve) |
12,80,000
12,80,000
9,60,000
6,36,800
4,800 2,400
9,55,200
9,50,400
8,000 1,600
8,000 2,000
3,200
|
12,80,000
4,80,000 1,60,000 3,20,000 3,20,000
4,80,000 4,80,000
6,36,800
4,000 3,200
6,36,800 3,18,400
9,50,400
4,800 4,800
10,000
3,200
|
| Category | Applied Shares | Shares Allotted | Money Received on Application @ Rs.4 each | Money transferred to Share Capital @ Rs3 each | Money transferred to Securities Premium @ Rs1 each | Excess Application money | Amount Adjusted on Allotment | Money refunded |
|
I II |
80,000 2,40,000 |
1,60,000 |
3,20,000 9,60,000 |
4,80,000 |
1,60,000 |
3,20,000 3,20,000 |
3,20,000 |
3,20,000
|
| 3,20,000 | 1,60,000 | 12,80,000 | 4,80,000 | 1,60,000 | 6,40,000 | 3,20,000 | 3,20,000 |
Calculation of amount unpaid on Allotment
Share Applied by Jain = (2,40,000/1,60,000) x 800 = 1,200 shares
Excess money received from Jain = 1,600 (400 x 4)
Amount due on Allotment = 2,400 (800 x 3)
Less : Excess Application Money = 1,600
____________________
Amount unpaid on Allotment = 800
Amount unpaid on Securities Premium = 2,400 (800 x 3)
____________________
Total amount unpaid on allotment = 3,200
Working Note : Amount received from Jain (Share Forfeiture.(Cr)
Amount received on application = 2,400 (800 x 3) [Premium excluded]
Add :Excess Application money = 1,600
________________________________________
Share Forfeiture (Cr.) = 4,000
Unpaid amount on First and Final Call
Share Allotted to Gupta = (1,60,000/2,40,000) x 1,200 = 800 shares
Unpaid amount on Allotment = 4,800 (800 6)
Calculation of amount received from Gupta (Share Forfeiture.Cr.)
Amount received on application = 2,400 (800 x 3) [Premium excluded]
Amount received on allotment = 2,400 (800 x 3) [Premium excluded]
Total amount received = 4,800
Calculation of Capital Reserve
(i) 800 shares of Jain are reissued
Share forfeiture (Cr.) = 4,000
Less :Share forfeiture (Dr.) = 1,600 (800 x 2)
Capital Reserve = 2,400
(ii) 200 Shares of Gupta are reissued
Share Forfeiture (Cr.) for 200 shares = 1,200 [(4,800/800)x200]
Less: Share Forfeiture (Dr.) = 400 [200 x 2]
Capital Reserve = 800
Total Amount of Capital Reserve = 3,200 [2,400 + 800]
