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M.198 An Aid to Accountancy—CBSE XII

Bank A/c ...Dr. 8,000
To Share Capital A/c 8,000
(Being 800 forfeited shares reissued at ` 10, being fully paid-up)
Forfeited Shares A/c ...Dr. 3,200
To Capital Reserve A/c (WN 3) 3,200
(Being the gain on reissue of 800 forfeited shares transferred
to Capital Reserve)
Working Notes:
1. Calculation of Amount not paid on allotment by Nimesh:

30,000
(a) Total No. of shares allotted to Nimesh = ¥1,600 = 1,200 shares.
40,000 `

(b) Amount paid on application by Nimesh (1,600 × ` 3) 4,800
Less: Amount adjusted on application (1,200 × ` 3) 3,600
Excess application money to be adjusted on allotment 1,200
(c) Money due on allotment (1,200 × ` 3) 3,600
Less: Excess application money to be adjusted on allotment [WN 1(b)] 1,200
Amount not paid on allotment 2,400
2. Amount Received on Allotment:
Total Amount due on allotment 90,000
Less: Excess application money adjusted 30,000
60,000
Less: Amount not paid on allotment (WN 1) 2,400
57,600
800
3. Amount transferred to Capital Reserve = ` 4,800 × = ` 3,200.
1,200

PART B

18. Cash Flow from Investing Activities `
Outflow for Purchase of Shares in Infosys Ltd. (2,50,000)

Dividend Received 50,000
Cash Used in Investing Activities (2,00,000)
19. Investing Activity.
20. (a) (i) Premium on Redemption of Debentures

Major Head: Non-Current Liabilities; Sub-Head: Other Long-term Liabilities
(ii) Share Application Money Pending Allotment
Major Head: As a line item in between Shareholders’ Funds and Non-Current
Liabilities.