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Model Test Papers M.431

Bank A/c (WN 2) ...Dr. 2,54,800
To Equity Shares Allotment A/c 2,54,800
Or
Bank A/c ...Dr. 2,54,800
Calls-in-Arrears A/c (WN 1) ...Dr. 5,200
To Equity Shares Allotment A/c 2,60,000
(Being the allotment money received except on 1,400 shares)
Equity Share Capital A/c (1,400 × ` 8) ...Dr. 11,200
To Forfeited Shares A/c (1,500 × ` 4) 6,000
To Equity Shares Allotment A/c/Calls-in-Arrears A/c 5,200
(Being 1,400 shares forfeited for non-payment
of allotment money)
Equity Shares First and Final Call A/c ...Dr. 1,37,200
To Equity Share Capital A/c 1,37,200
(Being the first and final call money due on 68,600 shares)
Bank A/c ...Dr. 1,35,800
To Equity Shares First and Final Call A/c 1,35,800
Or
Bank A/c ...Dr. 1,35,800
Calls-in-Arrears A/c ...Dr. 1,400
To Equity Shares First and Final Call A/c 1,37,200
(Being the first and final call money received except on 700 shares)

Equity Share Capital A/c (700 × ` 10) ...Dr. 7,000
To Forfeited Shares A/c 5,600
To Equity Shares First and Final Call A/c 1,400
Or
Equity Share Capital A/c ...Dr. 7,000
To Forfeited Shares A/c 5,600
To Calls-in-Arrears A/c 1,400
(Being 700 shares forfeited for non-payment of call money)
Bank A/c ...Dr. 19,500
To Equity Share Capital A/c (1,500 × ` 10) 15,000
To Securities Premium Reserve A/c (1,500 × ` 3) 4,500
(Being 1,500 forfeited shares reissued at ` 3 premium)
Forfeited Shares A/c ...Dr. 6,800
To Capital Reserve A/c (WN 3) 6,800
(Being the gain on reissue of 1,500 forfeited shares transferred to
Capital Reserve)
Working Notes:
1. Calculation of Allotment Money not paid by Jonney:
70,000
=
(i) Number of shares alloted to Jonney = ¥1,500 1,400 shares
75,000
(ii) Application money received from Jonney = 1,500 × ` 4 = ` 6,000
(iii) Application money required = 1,400 × ` 4 = ` 5,600