Page 203 - ISCDEBK-12

Joint Stock Company—Issue of Shares 7.39

Notes to Accounts
1. Share Capital `
Authorised Capital
... Equity Shares of ` 10 each ...
Issued Capital
2,000 Equity Shares of ` 10 each 20,000
Subscribed Capital
Subscribed and fully paid-up
1,980 Equity Shares of ` 10 each 19,800
Add: Forfeited Shares A/c (WN 4) 120
19,920
2. Reserves and Surplus
Capital Reserve 400
Securities Premium Reserve 7,768
8,168
3. Cash and Bank Balances
Cash at Bank 28,088

Working Notes:
1. (i) The excess amount received from Ajay on application:
Ajay has been allotted 40 shares.
2,400
Therefore, he must have applied for × 40 = 48 shares.
2,000
The excess application money received from Ajay:
48 shares – 40 shares = 8 shares × ` 6 = ` 48.

(ii) Amount not received from Ajay on Allotment: `
Allotment money due on 40 shares @ ` 2 80
Less: Excess money received from Ajay on application 48
The allotment money not received from Ajay 32
(iii) Net amount received on Allotment:
Allotment money due on 2,000 shares @ ` 2 4,000
Less: The excess amount received on application 2,400
Balance due 1,600
Less: Amount not received from Ajay on allotment 32
Net amount received on allotment in cash 1,568
2. Raghav applied for 72 shares.
2,000
Therefore, he must have been allotted × 72 = 60 shares. He has not paid the first and the second
call money. As such, 2,400
(a) the first call money will be received on
1,900 shares [2,000 – 40 (Ajay) – 60 (Raghav)], and
(b) the second call money will be received on 1,900 shares
[i.e., 2,000 – 40 (Ajay) – 60 (Raghav)].