Accountancy, asked by zaoman70971, 9 months ago

JJK Ltd. invited applications for issuing 50,000 equity shares of ₹ 10 each at par. The amount was payable as follows:
On Application ₹ 2 per share,
On Allotment ₹ 4 per share; and
On First and Final call Balance Amount.
The issue was oversubscribed three times. Applications for 30% shares were rejected and money refunded. Allotment was made to the remaining applicants as follows:
Excess money paid by the applicants who were allotted shares was adjusted towards sums due on allotment.
Deepak, a shareholder belonging to Category I , who had applied for 1,000 shares ,failed to pay the allotment money. Raju, a shareholder holding 100 shares, also failed to pay the allotment money. Raju belonged to Category II. Shares of both Deepak and Raju were forfeited immediately after allotment. Afterwards, first and final call was made and was duly received. The forfeited shares of Deepak and Raju were reissued at ₹ 11 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of company.

Answers

Answered by aburaihana123

Explanation:

Amount Due on Allotment - Rs. 2,00,000

Less: Excess Received - Rs. 1,10,000

Balance to be Received - Rs. 90,000

Less: Amount not paid by Deepak - Rs. 1,000

Less: Amount not paid by Raju - Rs. 100

Total Amount received on Allotment - Rs. 88,900

Shares Allotted to Deepak

$=\frac{40,000}{80,000} \times 1,000=500$

Shares Applied by Raju

$=\frac{25,000}{10,000} \times 100=250$

Amount received on Application - Rs. 2000

Less: Transferred to Share Capital - Rs. 1,000

Excess received on Application - Rs. 1,000

Amount due on allotment - Rs. 2000

Less: Excess adjustment - Rs.1,000

Amount unpaid by Deepak - Rs. 1,000

Amount received on Application - Rs. 500

Less: Transferred to Share Capital - Rs. 200

Excess received on Application - Rs. 300

Amount due on allotment - Rs. 400

Less: Excess adjustment - Rs. 300

Amount unpaid by Raju - Rs. 100

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