Question

Midee  Ltd. invited applications for issuing 27,000 shares of ₹ 100 each payable  as follows:

• ₹ 50 - per share on application;
• ₹  10 - per share on allotment; and
• Balance - on First and Final call.

Applications were received for 40,000 shares. Full allotment was made to the applicants of 7,000 shares. The remaining applicants were allotted 20,000 shares on a pro rata basis. Excess money received on applications was adjusted towards allotment and call.
Asha, holding 600 shares was belonged  to the category of applicants to whom a full allotment was made and paid the call money at the time of allotment. Ankur, who belonged to the category of applicants to whom shares were allotted on a pro rata basis, did not pay anything after the application on his 200 shares. Ankur's shares were forfeited after the First and Final call. These shares were later reissued at ₹ 105 per share as fully paid-up.
Pass necessary journal entries in the books of Midee Ltd for the above transactions by opening Calls-in-Arrears and Calls-in-Advance Accounts wherever necessary. 

Answer 1

Journal Entry
Date	Particulars	L.F.	Debit Amount (₹)	Debit Amount (₹)
	Bank A/c (40,000 × 50)   ...Dr.		20,00,000
	To Equity Share Application A/c			20,00,000
	(Being Application money received)
	Equity Share Application A/c   ...Dr.		20,00,000
	To Equity Share Capital A/c (27,000 × 50)			13,50,000
	To Calls in Advance A/c (13,000 × 50)			6,50,000
	(Being Application money transferred)
	Equity Share Allotment A/c (27,000 × 10)  ... Dr.		2,70,000
	To Equity Share Capital A/c			2,70,000
	(Being Allotment money due)
	Bank A/c (7,000 × 10 + 600 × 40)   ...Dr.		94,000
	Calls in Advance A/c (20,000 × 10)   ...Dr.		2,00,000
	To Equity Share Allotment A/c (27,000 × 10)			2,70,000
	To Calls–in–Advance A/c (600 × 40)		24,000
	(Being Allotment money received)
	Equity Share First Call A/c (27,000 × 40)   ...Dr.		10,80,000
	To Equity Share Capital A/c			10,80,000
	(Being Call money due)
	Bank A/c (10,80,000 − 4,50,000 − 3,500)  ...Dr.		6,26,500
	Calls-in-Advance A/c (6,50,000 − 2,00,000)   ...Dr.		4,50,000
	Calls-in-Arrears A/c   ...Dr.		3,500
	To Equity Share First Call A/c			10,80,000
	(Being Call money received)
	Equity Share Capital A/c   ...Dr.		20,000
	To Equity Share First Call A/c			3,500
	To Equity Share Forfeiture A/c			16,500
	(Being 200 shares forfeited)
	Bank A/c (200 × 105)   ...Dr.		21,000
	To Equity Share Capital A/c			20,000
	To Securities Premium A/c			1,000
	(Being Forfeited shares reissued at Rs 105 per share)
	Equity Share Forfeiture A/c   ...Dr.		16,500
	To Capital Reserve A/c			16,500
	(Being Profit on reissue transferred)