Question

'Nigam Limited' invited applications for issuing $15,000$ equity shares of $Rs10$ each at a discount of $Rs1$ per share. The amount was payable as follows:
On application - $Rs2$ per share
On allotment - $Rs3$ per share
On first and final call - $Rs4$ per share
Applications for $18,000$ shares were received. Shares were issued proportionately to all applicants. Excess money received with applications was adjusted towards sums due on allotment. Ramesh who had applied for $360$ share failed to pay allotment, and first and final call money. Naresh to whom $150$ shares were allotted failed to pay the first and final call money. Shares of both Ramesh and Naresh were forfeited. Out of the forfeited shares, $200$ shares were re-issued at $Rs9$ per share as fully paid up. The re-issued shares included all the shares of Naresh.
Pass necessary journal entries for the above transactions in the books of 'Nigam Limited'.

Answer 1

Working Note :
WN1 : Calculation of Amount not received on Allotment and First and Final Call
Shares all otted to Ramesh = $\frac{15,000}{18,000}\times 360=300$ shares
Amount received om $360$ shares of $Rs2$ each = $Rs720$
Amount transferred to Share Capital A/c $(300\times 2)=Rs600$
Excess money received on application = $Rs120$
Amount due on Allotment @ $Rs3$ each = $Rs900$
Amount not received on allotment = $Rs780$
Amount not received on first and final call = $Rs1,200(300\times 4)$
WN2 : Calculation of amount not received on first and final call
Amount not received on first and final call = $Rs600(150\times 4)$
WN3 : Calculation of amount transferred to capital Reserve
Out of the forfeited shares of Ramesh, only 50 shares were reissued
Proportionate amount credited Share forfeiture Account on $50$ shares = $\frac{720}{300}\times 50=120$
Thus, amount transferred to capital Reserve Account = $Rs120+750=Rs870$