Following amounts were payable on issue of shares by a company: Rs. 3 on application, Rs. 3 on allotment, Rs. 2 on first call and Rs. 2 on final call. X holding 500 shares paid only application and allotment money whereas Y holding 400 shares did not pay final call. Amount of Calls in arrear will be :

PRACTICAL PROBLEMS

(Issue at premium and calls in arrears)

Hindusthan Petroleum Ltd., invited application for 40,000 Equity shares of Rs 100 each payable as under including 20% premium:

On Application	:	Rs 30	On Allotment	:	Rs 40 (including premium)
On First Call	:	Rs 20	On Final Call	:	Rs 30

All the shares were applied for and also allotted. One share holder who was allotted 500 shares failed to pay first and final call.

Record the above transactions in the journal of the company.

X Ltd., invited applicaions for issuing 50,000 equity shares fo Rs 10 each. The amount was payable as follows : On Application : Rs 2 per share, On Allotment : Rs 3 per share, On First Call Rs 3 per share, On Second and Final Call : Balance amount. Applications for 70,000 shares were received. Applications for 10,000 shares were rejected and the application money was refunded. Shares were allotted to the remaining applicants on pro-rata basis and excess money received with applications was transferred towards sums due on allotment and calls, if any. Gopal,who applied for 600 shares, paid his entire share money with application. Ghosh, who had applied for 6,000 shares, failed to pay the allotment money and his shares were immediately forfeited. These forfeited shares were re-issued to Sultan for Rs 20,000; Rs 4 per share paid up. The first call money and the second and final call money was called and duly received. Pass necessary Journal entries for the above transactions in the books of X Ltd. Open Calls-in -Advance Account and Calls-in-Arrears Account wherever necessary.

A Ltd. Invited applications for issuing 1,00,000 shares of Rs 10 each at a premium of Rs 1 per share. The amount was payable as follows : On Application : Rs 3 per share; On Allotment : Rs 3 per share (including premium); On First Call : Rs 3 per share on Second and Final Call : Balance amount.

Applications for 1,60,000 shares were received. Allotment was made on the following basis:

(i) To applicants for 90,000 shares : 40,000 shares.

(ii) To applicants for 50,000 shares : 40,000 shares.

(iii) To applicants for 20,000 shares : full shares.

Excess money paid on application is to be adjusted against the amount due on allotment and calls.

Rishabh, a shareholder, who applied for 1,500 shares and belonged to category (ii), did not pay allotment, first and second and final call money. Another shareolder, Sudha, who applied for 1,800 shares and belonged to category (i), did not pay the first and second and final call money. All the shares of Rishabh and Sudha were forfeited and were subsequently re-issued at Rs 7 per share fully paid. Pass the necessary Journal entries in the books of A Ltd. Open Call-in Arrears account and Call-in -Advance Account wherever required.

XYZ Ltd. issued 10,000 equity share of 100 each payable as follows: Rs. 20 on the application, Rs. 20 on the allotment, Rs. 30 on first call and Rs. 30 on the second and final call. 10,000 shares were applied and allotted. Mr. A holding 100 shares couldn't pay both calls. The shares are forfeited. What is the total amount balance in Calls in Arrear A/c?

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