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M.196 An Aid to Accountancy—CBSE XII

Shares Allotment A/c (50,000 × ` 35) ...Dr. 17,50,000
To Share Capital A/c (50,000 × ` 25) 12,50,000
To Securities Premium Reserve A/c (50,000 × ` 10) 5,00,000
(Being the allotment money due)
Bank A/c (WN 2) ...Dr. 11,02,500
To Shares Allotment A/c 11,02,500
(Being the balance allotment money received except
on 1,000 shares) (WN 1 and 2)
Shares First and Final Call A/c ...Dr. 12,50,000
To Share Capital A/c 12,50,000
(Being the first and final call money due on 50,000 shares @ ` 25 each)
Bank A/c ...Dr. 12,25,000
To Shares First and Final A/c 12,25,000
(Being the first and final call money received except on 1,000 shares)

Share Capital A/c (1,000 × ` 100) ...Dr. 1,00,000
Securities Premium Reserve A/c ...Dr. 10,000
To Forfeited Shares A/c 62,500
To Shares Allotment A/c 22,500
To Shares First and Final Call A/c 25,000
(Being 1,000 shares forfeited for non-payment of allotment
and first and final call money)
Bank A/c (500 × ` 120) ...Dr. 60,000
To Share Capital A/c (500 × ` 100) 50,000
To Securities Premium Reserve A/c (500 × ` 20) 10,000
(Being 500 forfeited shares reissued at ` 120 per share as
fully paid-up)
Forfeited Shares A/c ...Dr. 31,250
To Capital Reserve A/c (WN 3) 31,250
(Being the gain on reissue of 500 forfeited shares transferred
to Capital Reserve)

Working Notes:
1. Calculation of Amount not Paid on Allotment by Sahil:
50,000
(a) No. of shares allotted to Sahil = ¥1,250 = 1,000 shares.
62,500 `
(b) Amount paid on application by Sahil (1,250 × ` 50) 62,500
Less: Amount adjusted with application (1,000 × ` 50) 50,000
Excess application money to be adjusted on allotment 12,500
(c) Amount due on allotment (1,000 × ` 35) 35,000
Less: Excess application money to be adjusted on allotment [WN 1(b)] 12,500
Amount due but not received on allotment 22,500