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JOURNAL

i	Bank A/c (1,20,000 ×× 20) Dr.	.	24,00,000	.
.	To Equity Share Application A/c	.	.	24,00,000
.	(Being application money received.)	.	.	.
ii	Equity Share Application A/c (1,20,000 ×× 20) Dr.		24,00,000	.
.	To Equity Share Capital A/c (80,000 ×× 20)	.	.	16,00,000
	To Equity Share Allotment A/c (40,000 ×× 20)		.	8,00,000
.	(Being application money transferred.)	.	.	.
iii	Equity Share Allotment A/c (80,000 ×× 60) Dr.		48,00,000	.
.	To Equity Share Capital A/c (80,000 ×× 40)	.	.	32,00,000
.	To Securities Premium Reserve A/c (80,000 ×× 20)	.	.	16,00,000
.	(Being allotment money due.)	.	.	.
iv	Bank A/c (48,00,000 - 8,00,000 - 2,00,000) Dr.		38,00,000	.
.	To Equity Share Allotment A/c	.	.	38,00,000
.	(Being allotment money received.)	.	.	.
v	Equity Share First and Final Call A/c Dr.		32,00,000	.
.	To Equity Share Capital A/c (80,000 ×× 40)	.	.	32,00,000
.	(Being first and final call money due.)	.	.	.
vi	Bank A/c [80,000-4,000-800) ×× 40] Dr.		30,08,000	.
.	To Equity Share First and Final Call A/c	.	.	30,08,000
.	(Being first and final call money received.)	.	.	.
vii	Equity Share Capital A/c (4,800 ×× 100) Dr.	.	4,80,000	.
.	Securities Premium Reserve A/c (4,000 ×× 20) Dr.	.	80,000	.
.	To Share Forfeiture A/c (6,000 ×× 20) + (800 ×× 60)	.	.	1,68,000
.	To Equity Share Allotment A/c	.	.	2.00.000
.	To Equity Share First and Final Call A/c (4,800 ×× 40)	.	.	1.92.000
.	(Being shares forfeited for non-payment.)	.	.	.
viii	Bank A/c (4,200 ×× 100) Dr.	.	4,20,000	.
.	To Equity Share Capital A/c	.	.	4,20,000
	(Being shares reissued @ Rs. 100 per shares.)	.	.	.
ix	Share Forfeiture A/c	.	1,50,000	.
.	To Capital Reserve A/c	.	.	1,50,000
.	(Being share forfeiture to capital reserve account.)		.	.

Date	Particulars	L.F.	Debit (Rs.)	Credit (Rs.)
	Bank A/c Dr.		24,00,000
	To Share Application A/c			24,00,000
	(Being application money received on 1,20,000 shares)

	Share Application A/c Dr.		24,00,000
	To Share Capital A/c			12,00,000
	To Securities Premium A/c			4,00,000
	To Share Allotment A/c			4,00,000
	To Bank A/c			4,00,000
	(Being application money adjusted and excess money on 20,000 shares refunded)

	Share Allotment A/c Dr.		12,00,000
	To Share Capital A/c			8,00,000
	To Securities Premium A/c			4,00,000
	(Being allotment due on 80,000 shares)

	Bank A/c Dr.		7,60,000
	Calls in Arrears A/c Dr.		40,000
	To Share Allotment A/c			8,00,000
	(Being allotment money received and excess money on application adjusted)

	Share First Call A/c Dr.		12,00,000
	To Share Capital A/c			12,00,000
	(Being call money due)

	Bank A/c Dr.		11,70,000
	Calls in Arrears A/c Dr.		30,000
	To Share First Call A/c			12,00,000
	(Being first call money received)

	Bank A/c Dr.		40,000
	To Calls in Arrears A/c			40,000
	(Being allotment money received on 4,000 shares)

	Share Capital A/c Dr.		80,000
	To Share Forfeiture A/c			50,000
	To Calls in Arrears A/c			30,000
	(Being Sahaj’s share forfeited)

	Bank A/c Dr.		1,20,000
	To Share Capital A/c			1,00,000
	To Securities Premium A/c			20,000
	(Being Sahaj’s shares reissued for Rs. 60 per share and Rs. 50 paid up)

	Share Forfeiture A/c Dr.		50,000
	To Capital Reserve A/c			50,000
	(Being amount transferred on shares reissued)

Computation table
Categories	Shares Applied	Shares Allotted	Money received on Application @ Rs. 20	Money transferred to share capital @ Rs. 15	Money transferred to Securities Premium @ Rs. 5	Allotment due @ Rs. 15	Excess on application	Refund
I	20,000	Nil	4,00,000					4,00,000
II	1,00,000	80,000	20,00,000	12,00,000	4,00,000	12,00,000	4,00,000
	1,20,000	80,000	24,00,000	12,00,000	4,00,000	12,00,000	4,00,000	4,00,000

	Shares allotted	Shares applied	Excess on application
Seema’s shares (Category II)	4,000	5,000 (4,000 * 1,00,000/80,000)	20,000
Sahaj’s shares (Category II)	2,000 (2,500 * 80,000/1,00,000)	2,500