Question - 41 : -
Amisha Ltd inviting application for 40,000 shares of ₹ 100 each at a premium of ₹ 20 per share payable; on application ₹ 40 ; on allotment ₹ 40 (Including premium): on first call ₹ 25 and Second and final call ₹ 15.
Application were received for 50,000 shares and allotment was made on pro-rata basis. Excess money on application was adjusted on sums due on allotment.
Rohit to whom 600 shares were allotted failed to pay the allotment money and his shares were forfeited after allotment. Ashmita, who applied for 1,000 shares failed to pay the
Two calls and his shares were forfeited after the second call. Of the shares forfeited, 1,200 shares were sold to Kapil for ₹ 85 per share as fully paid, the whole of Rohit’s shares being included.

Answer - 41 : -

Books of Amisha Ltd.

Date

Particulars

L.F.

Debit

Amount

₹

Credit

Amount

₹

Bank A/c

Dr.

20,00,000

To Share Application A/c

20,00,000

(Share Application money received on 50,000 shares @ 40 per share)

Share Application A/c

Dr.

20,00,000

To Share Capital A/c

16,00,000

To Share Allotment A/c

4,00,000

(Share Application money adjusted)

Share Allotment A/c

Dr.

16,00,000

To Share Capital A/c

8,00,000

To Share Premium A/c

8,00,000

(Share Allotment money due including premium)

Bank A/c

Dr.

11,82,000

To Share Allotment A/c

11,82,000

(Share Allotment money received except 600 shares)

Share Capital A/c

Dr.

36,000

Share premium A/c

Dr.

12,000

To Share Allotment A/c

18,000

To Share Forfeiture A/c

30,000

(600 shares forfeited after allotment)

Share First Call A/c

Dr.

9,85,000

To Share Capital

9,85,000

(First Call money in due on 39,400 shares)

Bank A/c

Dr.

9,65,000

To Share First Call A/c

9,65,000

(First Call money received except 800 shares)

Share Second and Final Call A/c

Dr.

5,91,000

To Share Capital A/c

5,91,000

(Second and Final Call money due on 39,400 shares)

Bank A/c

Dr.

5,79,000

To Share Second and Final Call A/c

5,79,000

(Second and Final Call money received except 800 shares)

Share Capital A/c

Dr.

80,000

To Share First Call A/c

20,000

To Share Second & Final Call A/c

12,000

To Share Forfeiture A/c

48,000

(800 share forfeited)

Bank A/c

Dr.

1,02,000

Share Forfeiture A/c

Dr.

18,000

To Share Capital A/c

1,20,000

(Forfeited shares reissued 1,200 @ 85 per share)

Share Forfeiture A/c

Dr.

48,000

To Capital Reserve A/c

48,000

(Profit on 1,200 reissued shares are transfer to capital reserve

account)

Cash Book (Bank Column)

Dr.

Cr.

Date

Particulars

J.F.

Amount

₹

Date

Particulars

J.F.

Amount

₹

Share Application

20,00,000

Balance c/d

48,28,000

Share Allotment

11,82,000

Share First Call

9,65,000

Share Final Call

5,79,000

Share Capital

1,02,000

48,28,000

WorkingNotes:

2. Call in arrears byRohit on allotment

Money received on Application	(750×40)	=	30,000
Less: Amount adjusted on Application	(600×40)	=	24,000
Amount adjusted on Allotment			6,000

Money due on Allotment	(600×40)	24,000
Money adjusted		6,000
Balance due on Allotment		18,000

5. Profit on theforfeiture of 600 share of Rohit = ₹ 30,000

Profit on theforfeiture of 600 share of Ashmita = ₹ 36,000

Profit on forfeiture of 1200 shares (30,000 + 36,000)	=	66,000
Less: Loss on reissue of shares	=	18,000
Transfer to Capital Reserve	=	48,000

6. Balance in ShareForfeiture Account (48,000 – 36,000) = ₹ 12,000

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