DateParticularsLFAmt.(Dr)mt.(Cr)(i)Bank A/cDr20,00,000 To Share Application A/c20,00,000(Share application money received on 50,000 shares @ 40 per share) –––––––––––––––––––––––––––––––––––––––––––––––(ii)Share Application A/cDr20,00,000 To Share Capital A/c(40,000×40)16,00,000 To Share Allotment A/c(10,000×40)4,00,000(Share application money adjusted) –––––––––––––––––––––––––––––––––––––––––––––––(iii)Bank A/c (Working Note) Dr11,82,000 To Share Allotment A/c11,82,000(Share allotment money receviedexcept 600 shares) –––––––––––––––––––––––––––––––––––––––––––––––(iv)Share Allotment A/cDr16,00,000 To Share Capital A/c(40,000×20)8,00,000 To Securities Premium A/c(40,000×20)8,00,000(Share allotment money includingpremium trasferred to capital and premium account) –––––––––––––––––––––––––––––––––––––––––––––––(v)Share Capital A/c (600×60)Dr36,000Share Premium A/c (600×20)12,000 To Share Allotment A/c (Working Note)18,000 To Share Forfeiture A/c (Working Note)30,000(600 shares forfeited after allotment) –––––––––––––––––––––––––––––––––––––––––––––––(vi)Bank A/c (38,600×25)Dr9,65,000 To Share First Call A/c9,65,000(First call money received except 800 shares) –––––––––––––––––––––––––––––––––––––––––––––––(vii)Share First Call A/cDr9,85,000 To Share Capital A/c (39,400×25)9,85,000(First call money transferred to share capital account) –––––––––––––––––––––––––––––––––––––––––––––––(viii)Bank A/c (38,600×15)Dr5,79,000 To Share Second and Final Call A/c5,79,000(Second and final call money recevied except800 shares) –––––––––––––––––––––––––––––––––––––––––––––––(ix)Share Second and Final Call A/cDr5,91,000 To Share Capital A/c(39,400×15)5,91,000(Second and final call money transferred toshare capital account) –––––––––––––––––––––––––––––––––––––––––––––––(x)Share Capital A/c (800×100)Dr80,000 To Share First Call A/c (800×25)20,000 To Share Second and Final Call A/c (800×15)12,000 To Share Forfeiture A/c (800×60)48,000(800 shares forfeited for non payment of twocalls) –––––––––––––––––––––––––––––––––––––––––––––––(xi)Bank A/c (1,200×85)Dr1,02,000Share Forfeiture A/c (1,200×15)Dr18,000 To Share Capital A/c (1,200×100)1,20,000(1200 shares reissued @ Rs 85 per share fullypaid-up) –––––––––––––––––––––––––––––––––––––––––––––––(xii)Share Forfeiture A/c (Working Note) Dr48,000 To Capital Reserve A/c48,000(Balance amount after reissue from share forfeitureaccount transferred to capital reserve)
Working Note:
(i) Calculation of Amount received on Allotment Number of shares applied by Rohit =Total shares appliedTotal shares alloted×Shared Allotted =50,00040,000×600 = 750 shares
Arrear of Rohit on Allotment Money received on application (750×40)=30,000(-) Money adjusted on application (600×40)=(24,000)––––––––––Allotment advance 6,000Rohit money due on Allotment (600×40) ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯24,000(-) Allotment advance (6,000)––––––––Rohit's arrear on allotment 18,000––––––––Total Money to be received in AllotmentAllotment money transferred to share capital account (40,000×40) 16,00,000(-) Allotment advance on application (4,00,000)–––––––––––– 12,00,000(-) Rohit's arrear of allotment (18,000)––––––––––Amount received on allotment 11,82,000–––––––––––
(ii) Calculation of Capital Reserve:
(a) On Rohit's 600 Shares Reissued
Amount transferred to share forfeiture (750×40)=30,000(-) Amount adjusted on reissue (600×15)= 9,000––––––Rohit's transfer to capital reserve 21,000––––––––
(b) On 600 Shares of Ashmita Reissued
Number of share allotted
=Total shares allotedTotal shares applied×Shares applied =40,00050,000×1,000=800 shares
Amount transferred to share forfeiture on 600=36,000share forfeiture (600×600)(-) Amount adjusted on reissue 600 shares=(9,000)(600×15)Ashmita's transfer to capital reserve ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯27,000––––––––Hence total capital reserve=21,000+27,000 =Rs 48,000