Page 36 - DEBK12

8.26 Double Entry Book Keeping—CBSE XII

Applications were received for 22,000 shares. Application for 2,000 shares were rejected and their application
money was refunded. Shares were allotted to the remaining applicants under three categories as follows:
Category I. Allotted 50% Shares to Mohan who had applied for 4,000 shares.
Category II. Allotted shares in full to Sohan who had applied for 2,000 shares.
Category III. Allotted balance of the shares on pro rata basis to the other applicants.
Excess application money was utilised in payment of allotment and call. All calls were made and
were duly received except the first and final call on 60 shares allotted to an applicant who belongs to
Category III. His shares were forfeited. The forfeited shares were reissued for ` 90 per share fully paid-up.
Pass the necessary Journal entries in the books of company.
[No. of shares applied by Defaulter —140 shares, Amount due but not received on
First and Final call —` 1,800; Call Money received later on = ` 3,58,200;
Capital Reserve—` 3,600.]
4. Swaraj & Co. was registered with an authorised capital of ` 5,00,000 divided into 50,000 shares of ` 10 each.
The company offered 30,000 of these shares to the public, which were payable ` 2 per share on application,
` 4 per share on allotment and the balance three months later. Applications for 46,000 shares were received
on which company allotted shares as:
Applicants for 20,000 shares ... Full,
Applicants for 25,000 shares ... 40%,
Applicants for 1,000 shares ... Nil.
` 86,000 was realised on account of allotment money (excluding the amount carried from application
money) and ` 1,00,000 on account of call. The Directors decided to forfeit those shares on which allotment
money was overdue.
Show Journal entries in the company’s books. [Ans.: Forfeited Shares A/c—` 2,000.]
5. Rolga Ltd. is having an authorised capital of ` 50,00,000 divided into equity shares of ` 100 each. The
company offered 42,000 shares to the public. The amount payable was as follows:
On Application — ` 30 per share,
On Allotment — ` 40 per share (including premium),
On First and Final Call — ` 50 per share.
Applications were received for 40,000 shares.
All sums were duly received except the following:
Lal, a holder of 100 shares did not pay allotment and call money.
Pal, a holder of 200 shares did not pay call money.
The company forfeited the shares of Lal and Pal. Subsequently, the forfeited shares were reissued for
` 70 per share as fully paid-up. Show the entries for the above transactions in the Cash Book and Journal
of the company. (Delhi 2015 C)
[Ans.: Capital Reserve—` 4,000; Balance of Cash Book—` 48,02,000.]
6. Gupta Ltd. invited applications for issuing 30,000 Equity Shares of ` 10 each at a premium of ` 30 per share.
The amount was payable as follows:
On Application — ` 10 per share (including ` 8 Premium),
On Allotment — ` 12 per share (including ` 9 Premium),
On First and Final Call — Balance.
Applications for 27,000 shares were received. All the calls were made and were duly received except
on 3,000 shares held by Shiva who failed to pay the Allotment and First and Final call money and on
2,000 shares of Girdhar who did not pay the First and Final call. Shares of Shiva and Girdhar were
forfeited. Out of the forfeited shares, 4,000 shares were reissued, including all the shares of Girdhar at
` 17 per share as fully paid-up.