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

Shares Allotment A/c ...Dr. 10,00,000
To Share Capital A/c 10,00,000
(Being the allotment money due on 2,00,000 shares @ ` 5 per share)
Bank A/c ...Dr. 5,97,300
Calls-in-Arrears A/c ...Dr. 2,700
To Shares Allotment A/c 6,00,000
(Being the Calls-in-Advance adjusted and balance received except on
1,000 shares)
Share Capital A/c ...Dr. 4,200
To Forfeited Shares A/c 1,500
To Calls-in-Arrears A/c 2,700
(Being 600 shares forfeited for non-payment of allotment money)
Shares First and Final Call A/c ...Dr. 5,98,200
To Share Capital A/c 5,98,200
(Being the first and final call money due on 1,99,400 shares @ ` 3 each)
Bank A/c ...Dr. 5,97,810
Calls-in-Arrears A/c ...Dr. 390
To Shares First and Final Call A/c 5,98,200
(Being the amount due on first and final call received except
on 130 shares)
Share Capital A/c ...Dr. 1,300
To Forfeited Shares A/c 910
To Calls-in-Arrears A/c 390
(Being 130 shares of Pooja forfeited)
Bank A/c ...Dr. 6,570
Forfeited Shares A/c ...Dr. 730
To Share Capital A/c 7,300
(Being 730 forfeited shares reissued @ ` 9 per share fully paid-up)
Forfeited Shares A/c ...Dr. 1,680
To Capital Reserve A/c 1,680
(Being the gain on 730 reissued shares transferred to Capital Reserve)

Working Notes:
1. Calculation of the Amount due but not Received on Allotment from Madhu:
Shares applied by Madhu and Share Application paid and adjusted:
Shares allotted = 600
600
∴ Shares applied = × 50,000 = 750
40 000, `
Application money paid (750 × ` 2) 1,500
Less: Adjusted against share application (600 × ` 2) 1,200
Balance to be adjusted against allotment money 300
Amount due from Madhu on allotment (600 × ` 5) 3,000
Less: Balance to be adjusted against allotment money 300
Balance not received on allotment 2,700