LLU'STRATION 55.

offered 1,00,000 shares of F10 each payable as F3 on application,

A company
50 on allotment, 2.50 on Ist call and 2 on the final call.
shares were allotted on a pro-rata basis
The public applied for 1,52,000 shares. The
the allotment money
1othe applicants of 1,50,000 shares. All shareholders paid
one shareholder who allotted 200 shares. These shares were forfeited.
was
excepting
shares were re-issued (@ F9 per share
The first call was made thereafter. The forfeited
paid up. The final call was not yet made.
YOu are required to pass journal entries.
IOLURNAL.
 7LUSTRATION56.
shares of 10 each on
Alfa Limited invited applications for 4,00,000 of its equity
he folloWing terms

application 5 per share

Pay able on

Pavable on allotment 3 per share

R2 per share X
Payable on first and final call
Applications for 5,00,000 shares were received. It was decided
(a) to refuse allotment to the applicants for 20,000 shares;
(b) to allot in full to applicants for 80,000 shares;
other
allot the balance of the available shares pro-rata among the
(c) to
applicants; and
allotment
in part as payment of
(d) to utilise excess application money

money. did not pay the

been allotted on pro-rata basis,
had
One applicant whom shares The shares
and his 400 shares were forfeited.
and on the call,
amount due on allotment
Mere reissued @ F9 per share. data.
entries necessary to record the foregoing
Show the journal and cash book
ILLUSTRA TION 61. 2.00,000 shares
applications for
of

issued a prospectus
inviting
A limited company as follows:
On Application 73:
2 per share payable
1 0 each at a premium of Second Call 72
On First Call 73 and On
Allotment 4 (including premium):
and allotmernt was made on
were received for 3,00,000 shares
Applications on a c c o u n t ofsums due
applications was employed
pro-rata basis. Money overpaid on

on allotment.
and on his
R. to whom 400 shares allotted failed to pay the allotment money
were
were forfeited. M, the
holder of 600
subsequent failure to pay the First Call his shares
forfeited after the Second Call.
shares failed to pay the two calls and his shares were
Of the shares forfeited, 800 shares were sold to K as fully paid, K paying
79 per share.
the whole of R's share being included.
Give journal entries, prepare Bank Account and show how the Share Capital will

be shown in the Company's Balance Sheet.

SOLUTION: JOURNAL
 Premium
I rilisation of excess application money for Securities

ILLUSTRATION 79. >

1,00,000 equity shares of T10 each at a
X Ltd. issued for Public subscription
as under:
premium of R5 per share payable
75
On Application 75)
77 (including premium
On Allotment
73
On First & Final Call was made pro-rata
to
shares. Allotment
for 1,50,000
received towards s u m s
Applications were was utilised
application
the money overpaid on
ail the applicants and

the allotment and call

monev
due on allotment. failed to pay
shares
who applied for 1,800 T w o - t h i r d of the
torteited shares w e r e
Suruchi, forfeited.
entries to record
subsequently
and the shares were
8 per
share. Show the journal
up at
t-1SSued to Supriya as fully paid
the above transactions.
 7.139
ACCOUNTS
-

ISSUE OF SHARES
PANY

ILLUSTRATION 78.
1,00,000 shares of T10 each at a premium
4 Ltd. invited applications for issuing
fTI per
share. The amount was payable as follows
On Application 3 per share
On Allotment 3 per share (including premium)
On First Call 73 per share
Balance Amount.
On Second and Final Call
made on the
received. Allotment was
Applications for 1,60,000 shares
were

followingbasis:
shares
() To Applicants for 90,000 shares: 40,000
shares
(ii) To Applicants for 50,000 shares: 40,000
shares : full shares
(ii) To Applicants for 20,000
due
adjusted against the amount on
application is to be
Excess money paid on

allotment and calls.

shares and belonged to category
Rishabh, a shareholder, who applied for 1,500
second and final call money.
(1), did not pay allotment, first and
and belonged to
Another shareholder, Sudha,
who applied for 1,800 shares
call money.
did not the first and second and final
category (i), pay
subsequently
Sudha were forfeited and
were
All the shares of Rishabh and
re-issued at 7 per share fully paid. Calls-in-Arrears
entries in the books of
A Ltd. Open
Pass the necessary journal (C.B.S. E. 2018)
Calls-in-Advance Account wherever required.
ACCOunt and

SOLUTION A Ld.
ILLUSTRATION77.
50,000 equity shares R10 eak
shares of 710 each. The
X Ltd. invited applications for issuing
amount was payable as follows: 2 per share
On Application
2 per share
On Allotment
T3 per share
On First Call
Balance amount
On Second and Final Call
for 10,000 shares Were
Applications for 70,000 shares were received. Applications
rejected and the application money was refunded.
cOMPANY ACCOUNTS ISSUE OF SHARES 7.137

Shares were allotted to the remaining applicants on a pro-rata basis and excess
money received with applications was transterred towards sums due on allotment and
calls. ifany.
Gopal. who applied tor 600 shares, paid his entire share money with application.
Ghosh. who had applied for 6,000 shares, failed to pay the allotment money and his
shares were immediately forfeited. These torfeited shares were re-issued to Sultan for
20.000: 4 per share paid up. The first call money and the second and tinal call
money was called and duly received.
Pass necessary entries for the above transactions in the books of X Ld.
journal
wherever necessary.
Open Calls-in-Advance Aceount and Calls-in-Arrears Account
(C.B.S.E. 2018)
STRA 7ION 75. 710 each at a
issuing 80,000 shares of
applications for
Limited invited
A7
share. The amount was payable as follows
TILITm Of R4 per
74
u m of
75 per share
On Application Premium)
On Allotment
79 per share (Including
received for 1,40,000 shares.
Applications w e r e
basis:
was made on the following 60,000 shares
Allotment
shares 60,000
for 80,000 20,000 shares
(i) To applicants 20,000
60,000 shares
(i) To applicants for sum due on
allotment.

was
utilized towards were
on applications
shares
dues and his
Money overpaid Shares failed
to pay his
applied for 1,200
who had
Rajiv. transactions.
above
Iorieited record the
Limited to 2010)
in the books of
Arti C.B.S.E Sample
Paper
Pass journal entries