Page 288 - AAAXII

Model Test Papers M.275

Equity Shares First and Final Call A/c ...Dr. 3,94,000
To Equity Share Capital A/c 3,94,000
(Being first and final call due on 1,97,000 shares)
Bank A/c ...Dr. 3,92,000
Calls-in-Arrears A/c ...Dr. 2,000
To Equity Shares First and Final Call A/c 3,94,000
(Being the call money received except on 1,000 shares)
Equity Share Capital A/c ...Dr. 10,000
To Calls-in-Arrears A/c 2,000
To Forfeited Shares A/c 8,000
(Being 1,000 shares of Sharma forfeited for non-payment of call)
Bank A/c ...Dr. 28,000
Forfeited Shares A/c ...Dr. 7,000
To Equity Share Capital A/c 35,000
(Being 3,500 shares reissued)
Forfeited Shares A/c ...Dr. 9,000
To Capital Reserve A/c 9,000
(Being the gain on reissued shares transferred)

Dr. FORFEITED SHARES ACCOUNT Cr.
Particulars ` Particulars `
To Equity Share Capital A/c 7,000 By Equity Share Capital A/c 12,000
To Capital Reserve A/c 9,000 By Equity Share Capital A/c 8,000
To Balance c/d 4,000
20,000 20,000

Working Notes:
1. Calculation of Allotment Money Not paid by Bajaj:
Shares Allotted to Bajaj = 3,000
2,00,000
Shares Applied by Bajaj = × 3,000 = 4,000
1,50,000
Excess Application Money = 1,000 × ` 3 = ` 3,000
`
Allotment Money due on 3,000 shares 15,000
Less: Excess Application Money Adjusted 3,000
Amount due on allotment but not paid by Bajaj 12,000
2. Amount transferred to Capital Reserve: `
Add: Amount forfeited on 3,000 Bajaj’s shares 12,000
Ê 500 ˆ
Amount forfeited on 500 Sharma’s shares Á × 8,000` ˜ ¯ 4,000

Ë1,000 16,000
Less: Loss on reissue (3,500 × ` 2) 7,000
Amount transferred to Capital Reserve 9,000