Public applied for 40,000 shares, out of which 10,000 shares were rejected and money on 5,000 shares was diverted to share allotment. All the allotment and calls money was received.
Pass journal entries in the journal of ONGC Ltd.

Q. Modern Chemicals Co. Ltd. made an issue of 60,000 shares of Rs. 20 each payable as follows:
On application Rs. 5 per share
On allotment Rs. 5 per share
On first call Rs. 4 per share
On second call Rs. 3 per share
The company received applications for 65,000 shares of which applications for 5,000 shares were rejected and money refunded.
All the same shareholders paid up to second call except one shareholder, Mr. Bhupendra, the allotee of 100 shares, who did not pay the amount of the second call.
Give Journal Entries in the books of Modern Chemicals Co. Ltd.

PRACTICAL PROBLEMS

(Forfeiture of shares issued at par)

Vijay Ltd. issued Rs 40,000 Equity shares of Rs 10 each payable as follows.

On Application	:	Rs 2	On Allotment	:	Rs 3
On First Call	:	Rs 3	On Second Call	:	Rs 2

The company received applications for Rs 50,000 equity shares. Allotment for shares was made on pro rata basis. Share allotment and calls were made and as also received except Raja holding Rs 1,000 shares failed to pay both the calls. His shares were forfeited after second call.

Record the above transactions in books of Vijay Ltd.

Note: Excess money received on share application 10,000 × Rs 2 = 20,000 will be diverted to share allotment A/c.

Rupak Ltd. issued 10,000 shares of Rs 100 each payable Rs 20 per share on application, Rs 30 per share on allotment and balance in two calls of Rs 25 per share. The application and allotment money were duly received. On first call all member pays their dues except one member holding 200 shares, while another member holding 500 shares paid for the balance due in full. Final call was not made.

Give journal entries and prepare cash book.

Join BYJU'S Learning Program

Application	:	Rs 5	Allotment	:	Rs 10
First Call	:	Rs 2	Final Call	:	Rs 3

Journal Entry
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		75,000
	To Share Application A/c				75,000
	(Share application received on 15,000 shares of Rs 5 each)

	Share Application A/c	Dr.		75,000
	To Share Capital A/c				50,000
	To Bank A/c				25,000
	(Share application transferred to Share Capital A/c and Share Application on 5,000 shares has been refunded)

	Share Allotment A/c	Dr.		1,00,000
	To Share Capital A/c				1,00,000
	(Share allotment due on 10,000 shares of Rs 10 each)

	Bank A/c	Dr.		1,00,000
	To Share Allotment A/c				1,00,000
	(Share allotment received)

	Share First Call A/c	Dr.		20,000
	To Share Capital A/c				20,000
	(Share first call due on 10,000 shares of Rs 2 each)

	Bank A/c	Dr.		19,800
	Calls-in-Arrears A/c	Dr.		200
	To Share First Call A/c				20,000
	(Share first call received on 9,800 shares of Rs 2 each)

	Share Final Call A/c	Dr.		30,000
	To Share Capital A/c				30,000
	(Share final call due on 10,000 shares of Rs 3 each)

	Bank A/c	Dr.		29,700
	Calls-in-Arrears A/c	Dr.		300
	To Share Final Call A/c				30,000
	(Share final call received on 9,700 shares of Rs 3 each)

	Share Issue Expenses A/c	Dr.		5,000
	To Bank A/c				5,000
	(Expenses on issue of shares paid)

Balance Sheet of Alfo Ltd.
Liabilities		Amount	Assets	Amount
Issued and Paid-up Capital			Cash at Bank	1,94,500
10,000 shares of Rs 20 each	2,00,000		Miscellaneous Expenditure
Less: Calls-in-Arrears	500	1,99,500	Expenses on Issue	5,000

		1,99,500		1,99,500

Shares Applied	Shares Allotted
15,000	10,000