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M.118 An Aid to Accountancy—CBSE XII

Equity Share Capital A/c (300 × ` 10) ...Dr. 3,000
To Forfeited Shares A/c (WN 2) 2,100
To Equity Shares First and Final Call A/c 900
(Being 300 shares forfeited due to non-payment of call money)
Bank A/c (300 × ` 9) ...Dr. 2,700
Forfeited Shares A/c (300 × ` 1) ...Dr. 300
To Equity Share Capital A/c 3,000
(Being the forfeited shares reissued for ` 9 per share
fully paid-up)
Forfeited Shares A/c ...Dr. 1,800
To Capital Reserve A/c 1,800
(Being the gain on reissue of shares transferred to Capital Reserve)
Working Notes:
1. Table Showing Allotment of Shares:
Category No. of Applied Shares No. of Allotted Shares

(a) 20,000 10,000
(b) 10,000 10,000
(c) 70,000 30,000

2. Calculation of Call Money due but not received from Defaulter:
(i) No. of shares applied by defaulter = 70,000/30,000 × 300 = 700 shares. `
(ii) Application money paid by him (700 × ` 3) 2,100
Less: Used against application money (300 × ` 3) 900
1,200
Less: Used against allotment (300 × ` 2) 600
Surplus application money to be used towards call 600
(iii) Call money due on 300 shares (300 × ` 5) 1,500
Less: Surplus application money to be used towards call 600
Call money due but not received 900
3. Call money received later: `
Total amount due on call (50,000 × ` 5) 2,50,000
Less: Excess application money adjusted 70,000
1,80,000
Less: Call money due but not received (WN 2) 900
1,79,100
Or
JOURNAL OF MOTI LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 75,00,000
To Equity Shares Application A/c 75,00,000
(Being the application money received on 15,00,000 shares)
Equity Shares Application A/c ...Dr. 75,00,000
To Equity Share Capital A/c (10,00,000 × ` 3) 30,00,000
To Securities Premium Reserve A/c (10,00,000 × ` 2) 20,00,000
To Bank A/c (3,00,000 × ` 5) 15,00,000
To Equity Shares Allotment A/c (2,00,000 × ` 5) 10,00,000
(Being the application money adjusted)