Page 148 - MA12

M.54 Management Accounting (Section B)—ISC XII

Working Notes:
1. Adjustment of Excess of Application Money:
Number of Applied Shares Number of Allotted Shares
Total Shares 80,000 54,000
Full Allotment 14,000 14,000
Pro rata Allotment 66,000 40,000
Pro rata Allotment: Excess Application Money = (66,000 – 40,000) × ` 50 = ` 13,00,000;
Adjusted on Allotment = 40,000 × ` 10 = ` 4,00,000;
Adjusted on Call = ` 13,00,000 – ` 4,00,000 = ` 9,00,000.

2. Calculation of Allotment money not paid by Vidur:
66,000
=
(a) Total Number of Shares applied by Vidur = ¥ 400 660 shares. `
40,000
(b) Application money received on shares allotted to Vidur (660 × ` 50) 33,000
(c) Less: Application money due on shares allotted to Vidur (400 × ` 50) 20,000
(d) Excess application money to be adjusted on allotment and call 13,000
(e) Allotment money due on shares allotted to Vidur (400 × ` 10) 4,000
Less: Excess application money adjusted on allotment 4,000
Amount not paid by Vidur on Allotment NIL
Still excess application money ` 9,000 (i.e., ` 13,000 – ` 4,000) remains to be adjusted on call.
3. Calculation of allotment money received later: `
Total allotment money due (54,000 × ` 10) 5,40,000
Less: Excess application money adjusted on allotment 4,00,000
1,40,000
Add: Calls-in-Advance (1,200 × ` 40) 48,000
1,88,000
4. Calculation of first and final call money not paid by Vidur: `
Total first and final call money due (400 × ` 40) 16,000
Less: Excess application money to be adjusted on call (WN 2) 9,000
Call money not paid by Vidur 7,000

5. Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Equity Shares Application A/c 40,00,000 By Balance c/d 54,37,000
To Equity Shares Allotment A/c 1,40,000
To Calls-in-Advance A/c 48,000
To Equity Shares First and Final Call A/c 12,05,000
To Equity Share Capital A/c 40,000
To Securities Premium Reserve A/c 4,000
54,37,000 54,37,000