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M.510 An Aid to Accountancy—CBSE XII

Bank A/c (15 × ` 8) ...Dr. 120
To Share Capital A/c (15 × ` 7) 105
To Securities Premium Reserve A/c (15 × ` 1) 15
(Being 15 forfeited shares reissued as ` 7 per share paid-up
for ` 8 per share)
Forfeited Shares A/c ...Dr. 75
To Capital Reserve A/c 75
(Being transfer of gain (profit) on reissue)
Working Note: Gain (Profit) on 15 reissued shares = ` 100/20 × 15 = ` 75.
Or
(a)
Dr. SHARES ALLOTMENT ACCOUNT Cr.
Particulars ` Particulars `
To Share Capital A/c (10,000 × ` 2) 20,000 By Shares Application A/c (Note 1) 8,000
To Securities Premium Reserve A/c (10,000 × ` 3) 30,000 By Bank A/c (Note 3) 37,800
By Calls-in-Arrears A/c (Note 2) 4,200
50,000 50,000

Dr. SECURITIES PREMIUM RESERVE ACCOUNT Cr.
Particulars ` Particulars `
To Calls-in-Arrears A/c (1,000 × ` 3) 3,000 By Shares Allotment A/c (10,000 × ` 3) 30,000
To Balance c/d 27,000
30,000 30,000
Dr. SHARES FORFEITURE ACCOUNT Cr.
Particulars ` Particulars `
To Share Capital A/c 2,400 By Share Capital A/c (1,200 × ` 4) 4,800
(Discount on reissue of 800 shares)
To Capital Reserve A/c (Note 4) 1,440
To Balance c/d (` 4,800/1,000 × 200) 960
4,800 4,800
Dr. CALLS-IN ARREARS ACCOUNT Cr.
Particulars ` Particulars `
To Shares Allotment A/c 4,200 By Share Capital A/c 3,200
To Shares First Call A/c 2,000 By Securities Premium Reserve A/c 3,000
6,200 6,200
Notes:
1. Excess application money adjusted on allotment = (12,000 – 10,000) × ` 4 = ` 8,000.
2. Amount not received from defaulter shareholders (Calls-in-Arrears):
10,000
=
(i) Shares allotted to him = ¥1,200 1,000
12,000
(ii) Application money received = 1,200 × ` 4 = ` 4,800
(iii) Application money due on shares allotted = 1,000 × ` 4 = ` 4,000
(iv) Excess Application money to be adjusted on allotment = ` 4,800 – ` 4,000 = ` 800
(v) Allotment money due on shares allotted = 1,000 × ` 5 = ` 5,000
(vi) Allotment money due but not received (Calls-in-Arrears) = ` 5,000 – ` 800 = ` 4,200.