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Question
Amrit Ltd. issued 50,000 shares of ₹ 10 each at a premium of ₹ 2 per share payable as ₹ 3 on application, ₹ 4 on allotment (including premium) , ₹ 2 on first call and the remaining on second call.
Applications were received for 75,000 shares and pro rata allotment was made to all the applicants.
All moneys due were received except allotment and first call from Sonu who applied for 1,200 shares. All his shares were forfeited. The forfeited shares were reissued for ₹ 9,600. Final call was not made . Pass necessary Journal entries.
Solution
Journal
|
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
Bank A/c |
Dr. |
|
2,25,000 |
|
|
|
To Share Application A/c (75,000×3) |
|
|
|
2,25,000 |
|
|
(Application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
2,25,000 |
|
|
|
To Share Capital A/c (50,000×3) |
|
|
|
1,50,000 |
|
|
To Share Allotment A/c |
|
|
|
75,000 |
|
|
(Application money adjusted on allotment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c (50,000×4) |
Dr. |
|
2,00,000 |
|
|
|
To Share Capital A/c |
|
|
|
1,00,000 |
|
|
To Securities Premium A/c |
|
|
|
1,00,000 |
|
|
(Allotment money due on 50,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,23,000 |
|
|
|
Calls-in-Arrears A/c |
Dr. |
|
2,000 |
|
|
|
To Share Allotment A/c |
|
|
|
1,25,000 |
|
|
(Allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share First Call A/c (50,000×2) |
Dr. |
|
1,00,000 |
|
|
|
To Share Capital A/c |
|
|
|
1,00,000 |
|
|
(First call money due on 50,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
98,400 |
|
|
|
Calls-in-Arrears A/c (800×2) |
Dr. |
|
1,600 |
|
|
|
To Share First Call A/c |
|
|
|
1,00,000 |
|
|
(Call money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c (800×7) |
Dr. |
|
5,600 |
|
|
|
Securities Premium A/c (800×2) |
Dr. |
|
1,600 |
|
|
|
To Calls-in-Arrears A/c |
|
|
|
3,600 |
|
|
To Share Forfeiture A/c (1,200×3) |
|
|
|
3,600 |
|
|
(800 shares forfeited for non-payment of allotment and call money) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
9,600 |
|
|
|
To Share Capital A/c |
|
|
|
5,600 |
|
|
To Securities Premium A/c |
|
|
|
4,000 |
|
|
(Shares reissued at a premium) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
3,600 |
|
|
|
To Capital Reserve A/c |
|
|
|
3,600 |
|
|
(Profit on reissue transferred to capital reserve) |
|
|
|
|
Working Notes:
WN1 Calculation of No. of Shares Allotted to Sonu
Shares app;ied by Sonu = 1200
Shares alloted to Sonu = `1200 xx 50000/75000 = 800`
WN2 Calculation of Amount Received on Allotment
Total allotment due on Sonu's shares = Rs 3200 (800 × 4)
Excess application money from Sonu adjusted towards allotment = (1200 × 3)- (800 × 3)= Rs 1200
Amount not received from Sonu = Rs 2000
Total Amount due on Allotment
@ 50000 shares = 20000
Less : Excess application money adjusted = 75000
Balance amount due = 125000
Less : Amount not received from Sonu = 2000
Amount received on allotment = 123000
APPEARS IN
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Based on the below information, you are required to answer the following question:
|
Nidiya Limited was incorporated on 1st April 2017 with a registered office in Mumbai. The capital clause of the memorandum of Association reflected a registered capital of 8,00,000 equity shares of ₹ 10 each and 1,00,000 preference shares of ₹ 50 each. Since some large investments were required for building and machinery the company in consultation with vendors, M/s VPS Enterprises, issued 1,00,000 equity shares and 20,000 preference shares at par with them in full consideration of assets acquired. Besides this, the company issued 2,00,000 equity shares for cash at par payable as ₹ 3 on application, 2 on the allotment, 3 on the first call and 2 on the second call. Till date, the second call has not yet been made and all the shareholders have paid except Mr. Ajay who did not pay allotment and calls on his 300 shares and Mr. Vipul who did not pay the first call on his 200 shares. Shares of Mr. Ajay were then forfeited and out of the 100 shares were reissued at ₹ 12 per share. |
What is the amount of security premium reflected in the balance sheet at the end of the year?
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Prepare Share Forfeiture account.
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