Solution for Shares

1.
Journal
Debit Credit
Date Particulars L.F. Amount Amount
(₹) (₹)
Bank A/c (1,50,000 × 2) Dr. 3,00,000
To Share Application A/c 3,00,000
(Application money received on 1,50,000
shares)
Share Application A/c Dr. 3,00,000
To Share Capital A/c 1,00,000
To Share Allotment A/c 1,10,000
To Bank A/c 90,000
(Application money transferred to Share
Capital)
Share Allotment A/c (50,000 × 4) 2,00,000
To Share Capital A/c 2,00,000
(Allotment money due on 50,000 shares)
Bank A/c Dr. 88,900
To Share Allotment A/c (WN2) 88,900
(Allotment money received)
Share Capital A/c (600 × 6) Dr. 3,600
To Share Allotment A/c (1,000 + 100) 1,100
To Share Forfeiture A/c (2,000 + 500) 2,500
(600 shares forfeited for non–payment of
allotment money)
Share First and Final Call A/c Dr. 1,97,600
To Share Capital A/c 1,97,600
(Call money due on 49,400 shares)
Bank A/c Dr. 1,97,600
To Share First and Final Call A/c 1,97,600
(Call money received)
Bank A/c (600 × 11) Dr. 6,600
To Share Capital A/c 6,000
To Security Premium Reserve A/c 600
(600 shares re–issued at Rs 11 per share)
Share Forfeiture A/c Dr. 2,500
To Capital Reserve A/c 2,500
(Profit on re–issue transferred to Capital
Reserve)
Working Notes:

WN1:Computation Table
Money
Money
received Amount
transferre
Shares on Excess adjusted Money
Categorie Shares d to Share
Allotte Applicatio Applicatio on refunde
s Applied Capital
d n n Money Allotmen d
@ Rs 2
@ Rs 2 t
each
each
I 80,000 40,000 1,60,000 80,000 80,000 80,000 –
II 25,000 10,000 50,000 20,000 30,000 30,000 –
III 45,000 – 90,000 – – – 90,000
1,50,00
0 50,000 3,00,000 1,00,000 1,10,000 1,10,000 90,000

WN2:Calculation of Amount Received on Allotment

2,00,00
Amount Due on Allotment
0
1,10,00
Less: Excess Received
0
Balance to be Received 90,000
Less: Amount not paid by
(1,000)
Deepak
Less: Amount not paid by
(100)
Raju
Amount received on
88,900
Allotment

WN3: Calculation of Shares Applied/Allotted

SharesAllottedtoDeepak=40,00080,000×1,000=500SharesAppliedbyRaju=25,00010,000×100=250
Amount not paid by Deepak on
Allotment
Amount received on 2,000
Application
Less: Transferred to (1,00
Share Capital 0)
Excess received on 1,000
Application
Amount due on 2,000
allotment
Less: Excess adjustment (1,00
0)
Amount unpaid by 1,000
Deepak
Amount not paid by Raju on Allotment
Amount received on Application 500
Less: Transferred to Share Capital (200)
Excess received on Application 300
Amount due on allotment 400
Less: Excess adjustment (300)
Amount unpaid by Raju 100
 2.
Date Particulars L.F. Debit (Rs.) Credit (Rs.)
  Bank A/c   Dr.   2,10,000  
    To Share Application A/c     2,10,000
  (Being application money      
received on 70,000 shares)
         
  Share Application A/c   Dr.   2,10,000  
  To Share Capital A/c     1,00,000
  To Securities Premium Reserve     50,000
A/c
  To Share Allotment A/c     15,000
  To Bank A/c     45,000
  (Being application money      
transferred to share capital and
adjusted)
         
  Share Allotment A/c  Dr.   1,50,000  
  To Share Capital A/c     1,00,000
  To Securities Premium Reserve     50,000
A/c
  (Being allotment due on 50,000      
shares)
         
  Bank A/c   Dr.   1,11,000  
  Calls in Arrears A/c    Dr.   24,000  
  To Share Allotment A/c     1,35,000
  (Being allotment money      
received with the exception of
8,000 shares)
         
  Share First Call A/c  Dr.   1,50,000  
  To Share Capital A/c     1,50,000
  (Being first call due on 50,000      
shares)
         
  Bank A/c   Dr.   1,20,000  
  Calls in Arrears A/c   Dr.   30,000  
  To Share First Call A/c     1,50,000
  (Being allotment money      
received with the exception of
8,000 shares)
         
  Share Capital A/c   Dr.   56,000  
  Securities Premium Reserve A/c   8,000  
  To Forfeited Shares A/c     16,000
  To Calls in Arrears A/c     48,000
  (Being 8,000 shares for non-      
payment of allotment and first
call and 2,000 shares for non-
payment of first call forfeited)
         
  Bank A/c  Dr.   32,000  
  Forfeited Shares A/c   Dr.   8,000  
  To Share Capital A/c     40,000
  (Being 50% of forfeited shares      
reissued as fully paid-up)

  Pro-Rata Computation table

Categorie Shares Shares Applicatio Applicatio Excess on Allotment @ Rs. 3 First call Refund 
s Applied Allotted n Money n Money applicatio against @ Rs. 3 Rs.
received transferre n (Rs.)
@ Rs. 3 d to share
capital &
SPR @ Rs.
3
            Face SPR @    
value @ Rs. 1
Rs. 2
A 5,000 5,000 15,000 15,000          
B 50,000 45,000 1,50,000 1,35,000 15,000 15,000      
C 15,000   45,000           45,000
  70,000 50,000 2,10,000 1,50,000 15,000 15,000     45,000
3.
Date Particulars Dr Cr
Bank A/c Dr. 4,00,000
To eq. share application A/c 4,00,000
Eq. share application A/c Dr. 4,00,000
To share capital A/c 4,00,000
Share allotment Dr. 4,00,000
Discount issue Dr. 2,00,000
To share capital 6,00,000
Bank A/c Dr. 4,00,000
To share allotment 4,00,000
Share 1st call Dr. 6,00,000
To share capital 6,00,000
Bank A/c Dr. 6,00,000
To share 1st call 6,00,000
Share final call Dr. 4,00,000
To share capital 4,00,000
Bank Dr. 3,98,000
Calls in arrears Dr. 2000
To share final call 4,00,000

4.
Date Particulars Dr Cr
1 Bank A/c Dr. 20,000
To share application A/c 20,000
2 share application A/c Dr. 20,000
To share capital A/c 20,000
3 Share allotment Dr. 40,000
To share capital 40,000
4 Bank A/c Dr. 40,000
To share allotment 40,000
5 Share 1st call Dr. 30,000
To share capital 30,000
6 Bank A/c Dr. 30,000
To share 1st call 30,000
7 Share second & final call Dr. 10,000
To share capital 10,000
8 Bank Dr. 9,000
Calls in arrears Dr. 1000
To Share second & final call 10,000
5.
 6.

7.
                                                                    In the books of Kamini Ltd
                                                                                  Journal
Dr. Cr.
Date Particulars L.F.
Rs Rs
Equity Share First Call A/c                                                Dr
2016 3,00,000  
                   To Equity Share Capital A/c
Jan.01   3,00,000
(Being first Call money due on 1,00,000 equity shares @ Rs 3 each)
     
Bank A/c                                                                         Dr
  3,03,500  
Calls – in – Arrears A/c                                                     Dr
    1,500  
                  To Equity Share First Call A/c
    3,00,000
                  To Calls – in – Advance A/c
    5,00,000
(Being amount received on first call except 500 shares @ Rs 3 each
     
and second and final call received in advance @ Rs 5 each on 1,000
     
shares)
 8.
Calculation of amount received at the time of making first and final call.
Amount due at the time of first and final call ’ (45,000 – 500) x 5 = 2,22,500
(-) Calls-in-aiTears (300 x 5) = (1,500)
= ₹ 2,21,000

9.
 10.

11.

Working Notes:

Number of shares Issued = 125(100+25) /13,43,000(13,68,500−25,500)= 10,744 shares