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Byju's Answer
Standard XII
Accountancy
Goodwill Valuation (Retirement)
Denspar Ltd. ...
Question

Denspar Ltd. invited applications for issuing 2,00,000 equity shares of Rs.10 each at a premium of Rs.20 per share. The amount was payable as follows :
On Application - Rs.2 per share
On Allotment - Rs.13 per share (including RS.10 premium).
On First Call - Rs.7 per share (including Rs.5 premium)
On Final Call - Rs.8 per share (including Rs.5 premium)
Applications for 1,80,000 shares were received. Shares were allotted to all the applicants. Yogesh, a shareholder holding 5,000 shares paid his entire share money along with the allotment money. Vishesh, a holder of 7,000 shares, failed to pay the allotment money. Afterwards the first call was made. Vishesh paid the allotment money along with the first call money. Samyesh, holding 2,000 shares did not pay the final call. Samyesh’s shares were forfeited immediately after the final call. Out of the forfeited shares, 1,500 shares were reissued at Rs.8 per share fully paid up.
Pass the necessary journal entries for the above transactions in the books of Denspar Ltd

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Solution

Payment schedule
Application Rs.2
Allotment Rs.3×Rs.10
First call Rs.2×Rs.5
Final call Rs.3×Rs.5
Rs.10×Rs.20
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On Application — ₹ 4 per share (Including ₹ 2 premium);
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The issue was fully subscribed . Gopal, a shareholder holding 200 shares, did not pay the allotment money and Madhav, a holder of 400 shares, paid his entire share money along with the allotment money. Gopal's shares were immediately forfeited after allotment . Afterwards, the first call was made. Krishna, a holder of 100 shares , failed to pay the first call money and Girdhar, a holder of 300 shares, paid the second call money also along with the first call . Krishna's shares were forfeited immediately after the first call. Second and final call was made afterwards and was duly received . All the forfeited shares were reissued at ₹ 9 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of the company.
Q. VXN Ltd. invited applications for issuing 50,000 equity shares of Rs.10 each at a premium of Rs.8 per share. The amount was payable as follows:
On Application Rs.4 per share (including Rs. 2 premium).
On Allotment Rs.6 per share (including Rs.3 premium).
On First Call Rs.5 per share (including Rs.1 premium).
On Second and Final Call Balance Amount.
The issue was fully subscribed. Gopal, a shareholder holding 200 shares, did not pay the allotment money and Madhav, a holder of 400 shares, paid his entire share money along with the allotment money. Gopal's shares were immediately forfeited after allotment. Afterwards, the first call was made. Krishna, a holder of 100 shares, failed to pay the first call money and Girdhar. a holder of 300 shares, paid the second call money also along with the first call. Krishna's shares were forfeited immediately after the first call. Second and final call was made afterwards and was duly received. All the forfeited shares were reissued at Rs.9 per share fully paid up.
Pass necessary Journal Entries for the above transactions in the books of the company.
Q. JS Ltd. invited applications for issuing 80,000 equity shares of Rs.10 each at a premium of Rs.6 per share. The amount was payable as follows:
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Applications for 1,60,000 shares were received. Applications for 40,000 shares were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Raman holding 400 shares failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards the final call was made. Veer who had applied for 1,200 shares failed to pay the final call. His shares were also forfeited. Out of the forfeited shares 500 shares were re-issued at Rs.8 per share fully paid-up. The re-issued shares included all the forfeited shares of Raman.
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