Page 419 - AAAXII

Model Test Papers M.401

Bank A/c ...Dr. 88,900
Calls-in-Arrears A/c ...Dr. 1,100
To Equity Shares Allotment A/c 90,000
(Being the balance amount received on allotment except on 600 shares)
(WN 3, 4 and 5)
Equity Share Capital A/c (600 × ` 6) ...Dr. 3,600
To Calls-in-Arrears A/c 1,100
To Forfeited Shares A/c 2,500
(Being 600 shares forfeited on which allotment money was not received)
Equity Shares First and Final Call A/c (49,400 × ` 4) ...Dr. 1,97,600
To Equity Share Capital A/c 1,97,600
(Being the first and final call money due)
Bank A/c ...Dr. 1,97,600
To Equity Shares First and Final Call A/c 1,97,600
(Being the first and final call money received)
Bank A/c (600 × ` 11) ...Dr. 6,600
To Equity Share Capital A/c 6,000
To Securities Premium Reserve A/c 600
(Being the forfeited shares reissued at ` 11 per share fully paid-up)
Forfeited Shares A/c ...Dr. 2,500
To Capital Reserve A/c 2,500
(Being the gain on reissue of forfeited shares transferred to Capital Reserve)

Working Notes:
1. Excess Application Money = [(1,50,000 × ` 2) – (50,000 × ` 2)] = ` 2,00,000.

2. TABLE SHOWING ADJUSTMENT OF SURPLUS APPLICATION MONEY
Particulars Refund Adjustment
(`) on Allotment (`)
A. 30% share applications were rejected, hence refunded [(1,50,000 × 30/100) × ` 2] 90,000
B. Money received from Category I shareholders: (80,000 × ` 2) 1,60,000
Less: Adjusted on application (40,000 × ` 2) 80,000
80,000
Less: Adjusted at the time of allotment 80,000 80,000
0
C. Money received from Category II sharesholders: (25,000 × ` 2) 50,000
Less: Adjusted on application (10,000 × ` 2) 20,000
30,000
Less: Adjusted at the time allotment 30,000 30,000
0
90,000 1,10,000

3. Number of shares allotted to Deepak = 1,000 × 40,000/80,000 = 500 shares.
Excess application money (500 × ` 2) ` 1,000
Allotment Money due (500 × ` 4) ` 2,000
Less: Excess application money adjusted ` 1,000
Allotment money due but not paid by Deepak ` 1,000