Page 204 - ISCDEBK-12

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

3. 80 shares have been reissued which include 60 shares of Raghav and the balance 20 shares of Ajay. `
Ê ` 240 ˆ
Amount forfeited on 20 shares of Ajay = Á Ë 40 × 20 ˜ ¯ 120

Amount forfeited on 60 shares of Raghav 360
Total amount forfeited on 80 reissued shares 480
Less: Reissue discount 80
Gain on reissue to be transferred to Capital Reserve 400
4. Amount forfeited on 40 shares of Ajay = ` 240
Therefore, the balance of Forfeited Shares Account on 20 unissued shares
` 240
= × 20 = ` 120.
40

Unsolved Questions

1. Wye Ltd. was registered with capital of ` 5,00,000 divided into 20,000 shares of ` 25 each, payable as
follows: ` 2.50 per share on application, ` 7.50 per share on allotment, and the balance in two calls of
` 7.50 per share each. The company offered to the public for subscription 10,000 shares and applications
were received for 10,500 shares. Nimrat applied for 400 shares, paid ` 1,000 on application but was
allotted only 200 shares. Manni applied for 800 shares, paid the full amount ` 20,000 of his share
money on applica tion, was allotted only 500 shares and the surplus money was returned to him.
Sumant applied for 1,000 shares, paid his application and allotment money in order, paid
` 2,000 on the first call and did not pay for the second call at all. Pass Journal entries to record
the above transactions.

2. Exe Ltd. issued 1,00,000 shares of ` 10 each at a premium of 20% payable as follows:
` 5 per share on application;
` 5 per share (including premium) on allotment; and
Balance on first and final call.
Excess payment on applications was to be applied towards amounts due on allotment and call.
The issue was subscribed in excess by 1,50,000 shares. Applicants for 2,30,000 shares were allotted
1,00,000 shares whereas applicants for 20,000 were sent letter of regret and application money was
refunded to them. The due amounts on allotment and call were received.
Pass the necessary Journal entries.

3. Parijan Ltd. issued 75,000 Equity Shares of ` 10 each at a premium of ` 2 per share. Total amount was
payable along with application. Raman had underwritten the issue for a commission of 3% to be paid
by issue of shares at par.
The issue was oversubscribed by 75,000 shares and allotment was made to all the applicants on pro rata.
Pass the Journal entries for the above.

4. Ghosh Ltd. made the second and final call on its 50,000 Equity Shares @ ` 2 per share on 1st January,
2018. The whole amount was received on 15th January, 2018 except on 100 shares allotted to Venkat.
Pass necessary Journal entries for the call money due and received by opening Calls-in- Arrears Account.