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7.34 Double Entry Book Keeping (Section A)—ISC XII

Shares Allotment A/c (4,000 × ` 10) ...Dr. 40,000
To Share Capital A/c (4,000 × ` 6) 24,000
To Securities Premium Reserve A/c (4,000 × ` 4) 16,000
(Being the allotment due on 4,000 shares @ ` 10 per share including
securities premium of ` 4 per share)
Bank A/c (WN 1) ...Dr. 36,064
Calls-in Arrears A/c ...Dr. 736
To Shares Allotment A/c 36,800
(Being the amount received except on 80 shares)
Shares First Call A/c (4,000 × 6) ...Dr. 24,000
To Share Capital A/c 24,000
(Being the first call due)
Bank A/c ...Dr. 22,800
Calls-in-Arrears A/c ...Dr. 1,200
To Shares First Call A/c 24,000
(Being the first call money received except on 200 shares)
Share Capital A/c ...Dr. 1,280
Securities Premium Reserve A/c ...Dr. 320
To Forfeited Shares A/c (96 × ` 4) 384
To Calls-in-Arrears A/c [` 736 + (80 × ` 6)] 1,216
(Being 80 shares forfeited for non-payment of allotment and first call)
Shares Second and Final Call A/c ...Dr. 15,680
To Share Capital A/c 15,680
(Being the second and final call due on 3,920 shares @ ` 4 each)
Bank A/c ...Dr. 15,200
Call-in-Arrears A/c ...Dr. 480
To Shares Second and Final Call A/c 15,680
(Being the second and final call received except on 120 shares)
Share Capital A/c ...Dr. 2,400
To Forfeited Shares A/c 1,200
To Calls-in-Arrears A/c 1,200
(Being 120 shares forfeited for non-payment of first and
second and final call)
Bank A/c ...Dr. 2,880
Forfeited Shares A/c ...Dr. 320
To Share Capital A/c 3,200
(Being 160 shares out of 200 forfeited shares reissued
@ ` 18 per share)
Forfeited Shares A/c ...Dr. 864
To Capital Reserve A/c 864
(Being the gain on 160 reissued shares transferred to Capital
Reserve) (WN 2)

Working Notes:
1. Calculation of Allotment Money Received Later:
(i) The excess amount received from Harish on application:
Harish has been allotted 80 shares
Ê 4,800 ˆ
∴ He must have applied for Á ¥ 80 = 96 shares.
˜
Ë 4,000 ¯
The excess application money received from Harish:
96 shares – 80 shares = 16 shares × ` 4 = ` 64.