Ques 3 Devam Limited issued a prospectus inviting application for 30,000
equity shares of Rs.10 each at a premium of Rs. 4 per share payable as follows:
With Application (including premium Rs.1) Rs. 3 On Allotment (including
premium Rs.1) Rs. 4 On First call (including premium Rs.1) Rs. 4 On Second and
Final call (2+1) Balance Rs. 3 Applications were received for 45,000 shares. 20%
of the applications received were rejected and their application money was
refunded. Remaining applicants were allotted shares on pro-rata basis. Mr.
Sudhir, who has applied for 600 shares, failed to pay the allotment money and
his shares were forfeited immediately after that. Ms. Muskan, to whom 750
shares were allotted failed to pay the first call and hence her shares were
forfeited. The forfeited shares of Mr. Sudhir were re-issued to Lakshya for Rs. 8
per share as fully paid up. Final call was made due on remaining applicants and
was received except on 1,000 shares of Amit. These shares were forfeited. Of
the shares forfeited, 1,500 shares were re-issued to Devika for Rs. 12 per share
as fully paid up, the whole of Amit's share being included. Record journal
entries in the books of the company.
jismai dum h yeh krke doo
reissue of sudhir
and amit
with explaination of valves kha se ayyi kaise bni eg.(750×8)
Answers
Answer:
IN THE BOOKS OF Devam Ltd.
Journal Entries
Date Particulars LF Debit (Rs.) Credit(Rs.)
1 Bank A/c Dr. 135000
To Equity Share Application A/c 135000
[Application money recd. On 45000 shares]
2 Equity Share Application A/c Dr. 135000
To Equity share Capital A/c 60000
To Securities Premium A/c 30000
To Equity Share Allotment A/c 18000
To Bank A/c 27000
[Application money on 30,000 shares transferred to share
capital A/c & securities premium A/c, 9000 shares refunded
and the excess amount adjusted towards allotment]
3 Equity Share Allotment A/c Dr. 120000
To Equity share Capital A/c 90000
To Securities Premium A/c 30000
[Allotment money due on 30000 shares]
4 Bank A/c Dr. 100300
To Equity Share Allotment A/c 100300
[Allotment money recd. On 29500 shares]
5 Equity Share Capital A/c Dr. 2500
Securities premium A/c Dr. 500
To Equity Share Allotment A/c 1700
To Share Forefeiture A/c 1300
[Being 500 shares forfeited]
6 Equity Share First Call A/c Dr. 118000
To Equity share Capital A/c 88500
To Securities Premium A/c 29500
[First call money due on 29500 shares]
7 Bank A/c Dr. 115000
To Equity Share First Call A/c 115000
[First call money recd on 28750 shares]
8 Equity Share Capital A/c Dr. 6000
Securities premium A/c Dr. 750
To Equity Share First Call A/c 3000
To Share Forefeiture A/c 3750
[Being 750 shares forfeited]
9 Bank A/c Dr. 4000
Share Forfeiture A/c Dr. 1000
To Equity Share Capital A/c 5000
[Sudhir's 500 shares reissued to lakshya @ Rs.8 per share]
10 Share Forfeiture A/c Dr. 300
To Capital Reserve A/c 300
[profit on reissue of 500 shares transferred to capital reserve]
11 Equity Share Second & Final Call A/c Dr. 86250
To Equity share Capital A/c 57500
To Securities Premium A/c 28750
[second & final call money due on 28750 shares]
12 Bank A/c Dr. 83250
To Equity Share Seond & Final Call A/c 83250
[Final call money recd on 27750 shares]
13 Equity Share Capital A/c Dr. 10000
Securities premium A/c Dr. 1000
To Equity Share Seond & Final Call A/c 3000
To Share Forefeiture A/c 8000
[Being 1000 shares forfeited]
14 Bank A/c Dr. 18000
To Equity Share Capital A/c 15000
To Securities Premium A/c 3000
[Being 1500 shares reissued at premium]
15 Share Forfeiture A/c Dr. 10500
To Capital Reserve A/c 10500
[profit on reissue of 1500 shares transferred to capital reserve]
Explanation:
45000 20% 9000 rejected
(45000-9000) 36000 : 30000
6 : 5
Working Note
1 Sudhir Applied for Share 600
Alloted share to Sudhir 500
Application money paid by Sudhir 1800
less: Application money required 1500
Amt. adjusted towards allotment 300
Allotment money due by Sudhir 2000
less: Amt. recd at the time application -300
actual amt. due on allotment 1700
2 amt due on allotment 120000
less: amt. due by Sudhir -1700
less: amt. recd at the time of Application -18000
Amount recd. on allotment 100300
3 Amt due on First Call 118000
Less: Amt. not recd. By Muskan -3000
Amt. recd. On first call 115000
No. of shares Amt of Forfeiture
4 1000 Amit 8000
500 Muskan 2500
1500 Capital Res. 10500