Page 126 - AAAXII

Model Test Papers M.119

Equity Shares Allotment A/c ...Dr. 40,00,000
To Equity Share Capital A/c 40,00,000
(Being the allotment money due)
Bank A/c ...Dr. 29,40,000
Calls-in-Arrears A/c ...Dr. 60,000
To Equity Shares Allotment A/c 30,00,000
(Being the allotment money received except on 20,000 shares) (WN 1)
Equity Shares First and Final Call A/c ...Dr. 30,00,000
To Equity Share Capital A/c 30,00,000
(Being the first and final call money due)
Bank A/c ...Dr. 29,40,000
Calls-in-Arrears A/c ...Dr. 60,000
To Equity Shares First and Final Call A/c 30,00,000
(Being the call money received except on 20,000 shares)
Equity Share Capital A/c ...Dr. 2,00,000
To Calls-in-Arrears A/c (` 60,000 + ` 60,000) 1,20,000
To Forfeited Shares A/c 80,000
(Being 20,000 shares forfeited due to non-payment of allotment
and call money)
Bank A/c (10,000 × ` 8) ...Dr. 80,000
Forfeited Shares A/c (10,000 × ` 2) ...Dr. 20,000
To Equity Share Capital A/c 1,00,000
(Being 10,000 forfeited shares reissued for ` 8 per share fully paid-up)
Forfeited Shares A/c ...Dr. 20,000
To Capital Reserve A/c 20,000
(Being the gain (profit) on reissue transferred to Capital Reserve) (WN 2)
Working Notes:
1. Calculation of Money Received on Allotment:
(i) Pro rata allotment = 12,00,000 : 10,00,000 or 12 : 10
(ii) Number of shares allotted to Giri = 10/12 × 24,000 = 20,000 shares `
(iii) Money received on application from Giri (24,000 shares × ` 5) 1,20,000
Less: Amount adjusted on application (20,000 × ` 5) 1,00,000
Excess application money adjusted on allotment 20,000
(iv) Money due from Giri on Allotment:
Money due on allotment (20,000 × ` 4) 80,000
Less: Excess application money adjusted [as per (iii)] 20,000
Money not paid by Giri 60,000
(v) Money Received on Allotment: `
Total amount due on allotment 40,00,000
Less: Excess application money adjusted 10,00,000
30,00,000
Less: Money not paid by Giri [as per (iv)] 60,000
Money Received on Allotment 29,40,000
2. Calculation of amount transferred to Capital Reserve: `
Amount forfeited on 10,000 shares (` 80,000 × 1/2) 40,000
Less: Discount on reissue 20,000
Gain (Profit) on reissue transferred to Capital Reserve 20,000