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XYZ Ltd. invi...

Question

XYZ Ltd. invited applications for 40,000 equity shares of Rs 100 each at a discount of 6%. The amount was payable as follows:
On Application and Allotment - Rs 90 per share
On First and Final call - the balance amount.
Application for 60,000 shares were received. Applications for 10,000 shares were rejected and shares were allotted on pro-rata basis to remaining applicants. Excess application money received on application and allotment was adjusted towards sums due on first and final call. The calls were made. A shareholder, who applied for 50 share, failed to pay the first and final call money. His shares were forfeited. All the forfeited shares were re-issued at Rs 97 per share fully paid up.
Pass necessary journal entries for the above transactions in the books of XYZ Ltd.

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Solution

Shares and $40$ shares are allowed to him $[\frac{40, 000}{50, 000} \times 50 = 40]$
Calculation of excess amount received from him
Amount received $= 50 \times 90$ $R s .4, 500$
less: Amount that is to be received $= 40 \times 90$ $= R s .3, 600$
Excess money received
$= R s 900$
Amount due on first final call $= 40 \times 4$ $= R s . 160$
Now,he has already paid amount of $R s .900$ in excess at the time of application and allotment.Thus for forfeiture is not possible in this case.
Thus, this question has incomplete or wrong information,hence cannot e solved fully
Amount paid by $50, 000$ shares Rs $45, 00, 000$
Less Amount that is required to be paid Rs $36, 00, 000$
Excess Application money received Rs $9, 00, 000$
Less: Amount sue to first and final call Rs. $1, 60, 000$
Amount refunded through bank Rs. $7, 40, 000$
Add :Amount to be refunded Rs. $9, 00, 000$
Total Rs $16, 40, 000$ .

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Amount received	$= 50 \times 90$	$R s .4, 500$
less: Amount that is to be received	$= 40 \times 90$	$= R s .3, 600$
Excess money received		$= R s 900$
Amount due on first final call	$= 40 \times 4$	$= R s . 160$

Amount paid by $50, 000$ shares	Rs $45, 00, 000$
Less Amount that is required to be paid	Rs $36, 00, 000$
Excess Application money received	Rs $9, 00, 000$
Less: Amount sue to first and final call	Rs. $1, 60, 000$
Amount refunded through bank	Rs. $7, 40, 000$
Add :Amount to be refunded	Rs. $9, 00, 000$
Total	Rs $16, 40, 000$ .