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Model Test Papers M.73

Shares Application A/c ...Dr. 15,00,000
To Share Capital A/c (50,000 × ` 20) 10,00,000
To Bank A/c (25,000 × ` 20) 5,00,000
(Being the application money adjusted)
Shares Allotment A/c (50,000 × ` 40) ...Dr. 20,00,000
To Share Capital A/c 20,00,000
(Being the allotment money due)
Bank A/c (WN 1) ...Dr. 19,60,000
Calls-in-Arrears A/c ...Dr. 60,000
To Shares Allotment A/c 20,00,000
To Calls-in-Advance A/c (WN 1) 20,000
(Being the allotment money received on 48,500 shares and a shareholder
holding 500 shares paid both the calls along with allotment)
Shares First Call A/c ...Dr. 10,00,000
To Share Capital A/c 10,00,000
(Being the first call money due)
Bank A/c (WN 2) ...Dr. 10,30,000
Calls-in-Arrears A/c ...Dr. 20,000
Calls-in-Advance A/c ...Dr. 10,000
To Shares First Call A/c 10,00,000
To Calls-in-Arrears A/c (1,500 × ` 40) 60,000
(Being the first call money received except on 1,000 shares and
Calls-in-Arrears and Calls-in-Advance adjusted)
Shares Second and Final Call A/c ...Dr. 10,00,000
To Share Capital A/c 10,00,000
(Being the second and final call money due)
Bank A/c ...Dr. 9,70,000
Calls-in-Arrears A/c ...Dr. 20,000
Calls-in-Advance A/c ...Dr. 10,000
To Shares Second and Final Call A/c 10,00,000
(Being the second and final call money received except on 1,000 shares
and Calls-in-Advance adjusted)
Share Capital A/c ...Dr. 1,00,000
To Forfeited Shares A/c 60,000
To Calls-in-Arrears A/c 40,000
(Being 1,000 shares forfeited for non-payment of both the calls)
Bank A/c (1,000 × ` 120) ...Dr. 1,20,000
To Share Capital A/c 1,00,000
To Securities Premium Reserve A/c 20,000
(Being 1,000 forfeited shares reissued @ ` 120 per share as fully paid)
Forfeited Shares A/c ...Dr. 60,000
To Capital Reserve A/c 60,000
(Being the profit on reissue transferred to Capital Reserve Account)
Working Notes:
1. Calculation of Amount Received on Allotment: `
Amount Due on Allotment 20,00,000
Less: Allotment money not paid by Mohan, i.e., Calls-in-Arrears (1,500 × ` 40) 60,000
19,40,000
Add: Calls-in-Advance from Raman (500 × ` 40) 20,000
Amount Received on Allotment 19,60,000