Page 392 - AAAXII

Model Test Papers M.375

Notes:
1. Table Showing Adjustment of Application Money
Categories Shares Shares Application Appropriation of Application Money Received
Applied Allotted Money Shares Shares Refund
Received Application Allotment
` ` ` `
A 70,000 42,000 3,15,000 1,89,000 1,26,000 ...
(@ ` 4.50) (i.e., ` 3,15,000 – ` 1,89,000)
B 35,000 14,000 1,57,500 63,000 56,000 38,500
(@ ` 4.50) (i.e., 14,000 × ` 4)
C 5,000 4,000 22,500 18,000 4,500 ...
(@ ` 4.50) (i.e., 22,500 – ` 18,000)
2. Allotment money received: ` 53,440 [` 2,40,000 (Allotment money due) – ` 1,26,000 (A) – ` 56,000 (B) –
` 4,500 (C) – ` 60* (Not paid by Amar).]
3. Amount transferred to Capital Reserve: ` 1,780, i.e., ` 5,100 (Forfeited Shares A/c) – ` 3,320 (Discount on Reissue).
4. Excess application money adjusted on Allotment (A + B + C) = ` 1,86,500.
42,000
=
*Shares allotted to Amar = ¥100 60 shares.
70,000
Allotment money not paid by Amar = (60 × ` 4) – (Excess Application Money: 40 × ` 4.50) = ` 60.
Or
In the Books of EP Ltd.
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
2017
June 1 Bank A/c ...Dr. 12,50,000
To Equity Shares Application A/c 12,50,000
(Being the application money received for 2,50,000 shares @ ` 5 each)
August 1 Equity Shares Application A/c ...Dr. 12,50,000
To Equity Share Capital A/c (2,00,000 × ` 5) 10,00,000
To Equity Shares Allotment A/c (40,000 × ` 5) 2,00,000
To Bank A/c (10,000 × ` 5) 50,000
(Being the application money adjusted)
August 1 Equity Shares Allotment A/c ...Dr. 6,00,000
To Equity Share Capital A/c 4,00,000
To Securities Premium Reserve A/c 2,00,000
(Being the allotment money due on 2,00,000 shares @ ` 3 each
including premium of ` 1 per share)
Bank A/c ...Dr. 3,99,650
To Equity Shares Allotment A/c 3,99,650
(Being the shares allotment money received except on 200 shares)
Sept. 28 Equity Shares First and Final Call A/c ...Dr. 6,00,000
To Equity Share Capital A/c 6,00,000
(Being the shares first and final call money due on 2,00,000
shares @ ` 3 each)