000
V. 50. Elite Ltd. invited applications from public for 5,00,000 equity shares of 10
each issued at 11 per share. The payment was to be made as follows: 33 on
Application; *4 on Allotment including premium, and 34 on call.
Applications for 6,50,000 shares were received. Allotment of shares was made as
follows: (i) 100% shares to applicants of 4,00,000 shares; (ii) 50% shares to applicants
of 2,00,000 shares, (ii) No allotment to applicants of 50,000 shares.
A shareholder to whom 500 shares were allotted under category (1) paid full
amount due on shares along with allotment money. Another shareholder holding 1,000
shares failed to pay the amount due on call. His shares were forfeited and 800 of these
shares were subsequently re-issued as fully paid-up @ 8 per share
Answers
Step-by-step explanation:
APPLIED. ALLOTMENT
400000. 400000
200000. 100000
50000. Nil
1. Bank Ac Dr. 650000*10
To Share App 650000*10
2. Share App Dr 650000*10
To Share Capital 500000*10
To Share Allot. 100000*10
To Bank Ac. 50000*10
3. Share Allot Dr. 500000*4
To sec premium 500000*1
To share Capital 50000*3
4. Bank Ac Dr 1700000(500000*4 - 100000*3)
To Call in advance 500000*1
To share Allot 1700000
5. First share call Dr 500000*4
To share capital 500000*4
6. Bank Ac Dr 1995000(500000*4 - 5000)
call in arrears Dr 1000*3
To First share call 1998000
7. Share capital 1000*11
To share Forfeiture 1000*7
To calls in arrears 1000*4
8. Bank Ac Dr 800*8
Share Forfeiture Dr 800*2
To Share capital 800*10
9. Share forfeiture Dr 5400
To Capital Reserve 5400
(7000 - 1600 = 5400)
(400000+200000+50000=650000)
Check it whether it is right or wrong thank you
Step-by-step explanation:
capital reserve will come out to be 3200 ( 6000*4/5=4800 -1600 = 3200)
