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Amisha Ltd Inviting Application for 40,000 Shares of Rs 100 Each at a Premium of Rs 20 per Share Payable; on Application Rs 40 - Accountancy

Numerical

Amisha Ltd inviting application for 40,000 shares of Rs 100 each at a premium of Rs 20 per share payable; on application Rs 40 ; on allotment Rs 40 (Including premium): on first call Rs 25 and Second and final call Rs 15. Application were received for 50,000 shares and allotment was made on pro-rata basis. Excess money on application was adjusted on sums due on allotment. Rohit to whom 600 shares were allotted failed to pay the allotment money and his shares were forfeited after allotment. Ashmita, who applied for 1,000 shares failed to pay the Two calls and his shares were forfeited after the second call. Of the shares forfeited, 1,200 shares were sold to Kapil for Rs 85 per share as fully paid, the whole of Rohit’s shares being included. Record necessary journal entries.

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Solution

Books of Amisha Ltd.

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bank A/c

Dr.

 

20,00,000

 

 

 

To Share Application A/c

 

 

20,00,000

 

(Share Application money received on 50,000 shares @ 40 per share)

 

 

 

 

Share Application A/c

Dr.

 

20,00,000

 

 

 

To Share Capital A/c

 

 

16,00,000

 

 

To Share Allotment A/c

 

 

4,00,000

 

(Share Application money adjusted)

 

 

 

 

 

Share Allotment A/c

Dr.

 

16,00,000

 

 

 

To Share Capital A/c

 

 

8,00,000

 

 

To Share Premium A/c

 

 

8,00,000

 

(Share Allotment money due including premium)

 

 

 

 

 

Bank A/c

Dr.

 

11,82,000

 

 

 

To Share Allotment A/c

 

 

11,82,000

 

(Share Allotment money received except 600 shares)

 

 

 

 

 

Share Capital A/c

Dr.

 

36,000

 

 

Share premium A/c

Dr.

 

12,000

 

 

 

To Share Allotment A/c

 

 

18,000

 

 

To Share Forfeiture A/c

 

 

30,000

 

(600 shares forfeited after allotment)

 

 

 

 

 

Share First Call A/c

Dr.

 

9,85,000

 

 

 

To Share Capital

 

 

9,85,000

 

(First Call money in due on 39,400 shares)

 

 

 

 

 

Bank A/c

Dr.

 

9,65,000

 

 

 

To Share First Call A/c

 

 

9,65,000

 

(First Call money received except 800 shares)

 

 

 

 

 

Share Second and Final Call A/c

Dr.

 

5,91,000

 

 

 

To Share Capital A/c

 

 

5,91,000

 

(Second and Final Call money due on 39,400 shares)

 

 

 

 

 

Bank A/c

Dr.

 

5,79,000

 

 

 

To Share Second and Final Call A/c

 

 

5,79,000

 

(Second and Final Call money received except 800 shares)

 

 

 

 

 

Share Capital A/c

Dr.

 

80,000

 

 

 

To Share First Call A/c

 

 

20,000

 

 

To Share Second & Final Call A/c

 

 

12,000

 

 

To Share Forfeiture A/c

 

 

48,000

 

(800 share forfeited)

 

 

 

 

 

Bank A/c

Dr.

 

1,02,000

 

 

Share Forfeiture A/c

Dr.

 

18,000

 

 

 

To Share Capital A/c

 

 

 

1,20,000

 

(Forfeited shares reissued 1,200 @ 85 per share)

 

 

 

 

 

Share Forfeiture A/c

Dr.

 

48,000

 

 

 

To Capital Reserve A/c

 

 

 

48,000

 

(Profit on 1,200 reissued shares are transfer to capital reserve

account)

 

 

 

Cash Book (Bank Column)

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

 

Share Application

 

20,00,000

 

Balance c/d

 

48,28,000

 

Share Allotment

 

11,82,000

 

 

 

 

 

Share First Call

 

9,65,000

 

 

 

 

 

Share Final Call

 

5,79,000

 

 

 

 

 

Share Capital

 

1,02,000

 

 

 

 

 

 

 

48,28,000

 

 

 

48,28,000

Working note:

1. Number of shares applied by rohit

=`"Total number of apllied shares"/"Total number of alloted shares"xx" No. of shares alloted"`

`(50,000)/(40,000) xx 600= 750" shares"`

2. Call in arrears by Rohit on allotment

Money received on Application

(750×40)

30,000

Less: Amount adjusted on Application

(600×40)

24,000

Amount adjusted on Allotment

 

6,000

3.

Money due on Allotment

(600×40)

24,000

Money adjusted

 

6,000

Balance due on Allotment

 

18,000

4. Number of shares alloted to ashmita 

`"Total number of apllied shares"/"Total number of alloted shares"xx" No. of shares alloted"`

`(40,000)/(50,000)xx1000=800" shares"`

5. Profit on the forfeiture of 600 share of Rohit = Rs 30,000

Profit on the forfeiture of 600 share of Ashmita = Rs 36,000 `(48,000xx(600)/800=36,000)`

Profit on forfeiture of 1200 shares (30,000 + 36,000)

=

66,000

Less: Loss on reissue of shares

=

18,000

Transfer to Capital Reserve

=

48,000

6. Balance in Share Forfeiture Account (48,000 – 36,000) = Rs 12,000

  Is there an error in this question or solution?
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APPEARS IN

NCERT Class 12 Accountancy - Company Accounts and Analysis of Financial Statements
Chapter 1 Accounting for Share Capital
Numerical Questions | Q 24 | Page 71
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