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Question
Sony Media Ltd.issued 50,000 shares of ₹ 10 each payable ₹ 3 on application , ₹ 4 on allotment and balance on first and final call . Applications were received for 1,00,000 shares and allotment was made as follows :
(i) Applicants for 60,000 shares were allotted 30,000 shares,
(ii) Applicants for 40,000 shares were allotted 20,000 shares,
Anupam to whom 1,000 shares were allotted from category
(i) failed to pay the allotment money.
Pass journal entries up to allotment .
Solution
Journal
| Date | Particulars | L.F. | Debit Amount (₹) | Credit Amount (₹) | |
| Bank A/c (1,00,000 × 3) | Dr. | 3,00,000 | |||
| To Share Application A/c | 3,00,000 | ||||
| (Received application money on 1,00,000 shares) | |||||
| Share Application A/c | Dr. | 3,00,000 | |||
| To Share Capital A/c (50,000 × 3) | 1,50,000 | ||||
| To Share Allotment A/c | 1,50,000 | ||||
| (Transfer of application money to Share Capital) | |||||
| Share Allotment A/c (50,000 × 4) | Dr. | 2,00,000 | |||
| To Share Capital A/c | 2,00,000 | ||||
| Allotment due on 50,000 shares) | |||||
| Bank A/c (W.N. 1) | Dr. | 49,000 | |||
| To Share Allotment A/c | 49,000 | ||||
| (Allotment money received after adjustment of excess on application and arrears) | |||||
Working Notes:
1) Computation of amount received on allotment:
| Allotment due (50,000 × 4) | = | Rs. 2,00,000 |
| Less: Amount received on application in excess (on 50,000 shares @ Rs . 3 each) | = | Rs. 1,50,000 |
| Rs. 50,000 | ||
| Less: Amount due but not received on shares of Anupam | 1,000 | |
| Rs. 49,000 |
2) Calculation of Amount not Received on the shares of Anupam
Shares alloted to Anupam = 1000
Shares applied by Anuoam = `1000 xx 60000/30000 = 2000`
| Amount due on allotment of Anupam's Share (4 × 1,000) | = | 4,000 |
| Less: Excess received on application (3 × 2,000 – 3 × 1,000) | = | 3,000 |
| 1,000 |
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