Page 187 - ISCDEBK-12

Joint Stock Company—Issue of Shares 7.23

Bank A/c ...Dr. 4,95,000
Calls-in-Arrears A/c ...Dr. 5,000
To Shares First and Final Call A/c 5,00,000
(Being the call money received except on 1,000 shares)
Equity Share Capital A/c (1,000 × ` 10) ...Dr. 10,000
To Forfeited Shares A/c 2,800
To Calls-in-Arrears A/c 7,200
(Being the shares issued to Sameer forfeited)
Bank A/c (800 × ` 9) ...Dr. 7,200
Forfeited Shares A/c ...Dr. 800
To Equity Share Capital A/c 8,000
(Being 800 shares reissued @ ` 9 fully paid-up)
Forfeited Shares A/c ...Dr. 1,440
To Capital Reserve A/c 1,440
(Being gain on 800 shares transferred to Capital Reserve) (WN 3)

(ii) Dr. EQUITY SHARES ALLOTMENT ACCOUNT Cr.

Particulars ` Particulars `
To Equity Share Capital A/c 3,00,000 By Bank A/c (Bal. Fig.) 2,17,800
By Equity Shares Application A/c 80,000
By Calls-in Arrears A/c 2,200
3,00,000 3,00,000

Working Notes:
1. Shares Applied by Sameer = 1,200 shares
1,200 1,00,000×
Shares Allotted to Sameer = 120 000, , = 1,000 shares.
2. Calls-in-Arrears (on Allotment) of Sameer: `
Amount due (` 3 × 1,000) 3,000
Less: Amount adjusted out of excess Shares Application Money (200 × ` 4) 800
Calls-in-Arrears 2,200
3. Calculation of Amount transferred to Capital Reserve:
Amount forfeited on 1,000 shares 2,800
∴ Amount forfeited on 800 shares (` 2,800 × 800/1,000) 2,240
Less: Discount allowed on 800 shares reissued 800
Gain on reissue transferred to Capital Reserve 1,440