Question

Sony Media Ltd.issued 50,000 shares of ₹ 10 each payable ₹ 3 on application , ₹ 4 on allotment and balance on first and final call . Applications were received for 1,00,000 shares and allotment was made as follows :
(i) Applicants for 60,000 shares were allotted 30,000 shares,
(ii) Applicants for 40,000 shares were allotted 20,000 shares,
Anupam to whom 1,000 shares were allotted from category
(i) failed to pay the allotment money.
Pass journal entries up to allotment .

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
	Bank A/c (1,00,000 × 3)	Dr.		3,00,000
	To Share Application A/c				3,00,000
	(Received application money on 1,00,000 shares)
	Share Application A/c	Dr.		3,00,000
	To Share Capital A/c (50,000 × 3)				1,50,000
	To Share Allotment A/c				1,50,000
	(Transfer of application money to Share Capital)
	Share Allotment A/c (50,000 × 4)	Dr.		2,00,000
	To Share Capital A/c				2,00,000
	Allotment due on 50,000 shares)
	Bank A/c (W.N. 1)	Dr.		49,000
	To Share Allotment A/c				49,000
	(Allotment money received after adjustment of excess on application and arrears)

Working Notes:

1) Computation of amount received on allotment:

Allotment due (50,000 × 4)	=	Rs. 2,00,000
Less: Amount received on application in excess (on 50,000 shares @ Rs . 3 each)	=	Rs. 1,50,000
		Rs. 50,000
Less: Amount due but not received on shares of Anupam		1,000
		Rs. 49,000

2) Calculation of Amount not Received on the shares of Anupam

$$\begin{gathered} \mathrm{Shares}\mathrm{allotted}\mathrm{to}\mathrm{Anupam}=1,000 \\ \mathrm{Shares}\mathrm{applied}\mathrm{by}\mathrm{Anuoam}=1,000\times \frac{60,000}{30,000}=2,000 \end{gathered}$$

Amount due on allotment of Anupam's Share (4 × 1,000)	=	4,000
Less: Excess received on application (3 × 2,000 – 3 × 1,000)	=	3,000
		1,000