X Ltd issued 40,000 equity shares of Rs 10 each at a premium of Rs 2 50 per share - Accountancy - Accounting for Share Capital

Question

X Ltd issued 40,000 equity shares of Rs 10 each at a premium of
Rs 2 50 per share The amount was payable as follows :Application -
Rs 2 per shareAllotment - Rs 4 50 per share (including premium)and
on Call - Rs 6 per shareOwing to heaving subscription, the
allotment was made on pro rata basis as follows :(i) Applicant for
20,000 shares were allotted 10,000 shares (ii) Applicants for
56,000 shares were allotted 14,000 shares (iii) Applicants for
48,000 shares were allotted 16,000 shares It was decided that
excess amount received on applications would be utilized on
allotment and the surplus would be refunded Ram, to whom 1000
shares were allotted, who belongs to category (i), failed to pay
allotment money His shares were forgeited after the call Pass the
necessary journal entries How to make the Analysis table for
this?

Manisha Arora · Accepted Answer

Books of X
Ltd

Journal
Entry

Date

Particulars
L F
Debit Amount
Rs
Credit Amount
Rs

Bank A/c
Dr

2,48,000

To Share Capital A/c

2,48,000

(Share Application received on 1,24,000
shares of Rs 2 each)

Share Application A/c
Dr

2,48,000

To Share Capital A/c

80,000

To Share Allotment A/c

1,68,000

(Share Application on 40,000 shares
transferred to share capital and rest of money adjusted towards
allotment)

Share Allotment A/c
Dr

1,80,000

To Share Capital A/c

80,000

To Securities Premium A/c

1,00,000

[Share Allotment due on 40,000 shares of
Rs 4 50 each (including Premium of Rs 2 50 each)]

Bank A/c
Dr

9,500

To Share Allotment A/c

9,500

(Share Allotment received)

Share First and Final Call A/c
Dr

2,40,000

To Share Capital A/c

2,40,000

(Share First and Final Call due on 40,000
shares of Rs 6 each)

Bank A/c
Dr

2,34,000

To Share First and Final Call A/c

2,34,000

(Share First and Final Call received on
39,000 shares of Rs 6 each)

Share Capital A/c
Dr

10,000

Securities Premium A/c

2,500

To Share Forfeiture A/c

4,000

To Share Allotment A/c

2,500

To Share First and Final Call A/c

6,000

(1,000 shares were forfeited for
non-payment of share allotment and share first and final call)

Working Notes:

Category
Shares
Applied
Shares
Allotted

I
20,000
10,000

II
56,000
14,000

III
48,000
16,000

1,24,000
40,000

Share Application received on 1,24,000 shares of Rs 2 each = Rs
2,48,000
Share Allotted (40,000*2) = Rs 80,000
Excess Application money received = Rs 1,68,000
(2,48,000-80,000)

Share Allotment due on 40,000 shares of Rs 4 50 each (including
Premium of Rs 2 50 each) = Rs 1,80,000
Excess Application money adjusted = Rs 1,68,000
Share Allotment is to be received = Rs 12,000
(1,80,000-1,68,000)

10,000 shares were allotted, who applied for = 20,000
shares
1,000 shares were allotted, who applied for = 20,000/10,000*1,000 =
2,000 shares

Share Application received on 2,000 shares of Rs 2 each = Rs
4,000
Shares Allotted (1,000*2) = Rs 2,000
Excess Application money received = Rs 2,000
(4,000-2,000)

Share Allotment due on 1,000 shares of Rs 4 50 each (including
Premium of Rs 2 50 each) = Rs 4,500
Excess Application money adjusted = Rs 2,000
Share Application not received = Rs 2,500
(4,000-2,000)

Therefore, Share Allotment received = Rs 9,500
(12,000-2,500)

	Books of X Ltd.
	Journal Entry
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

		Bank A/c	Dr.		2,48,000
		To Share Capital A/c				2,48,000
		(Share Application received on 1,24,000 shares of Rs 2 each)

		Share Application A/c	Dr.		2,48,000
		To Share Capital A/c				80,000
		To Share Allotment A/c				1,68,000
		(Share Application on 40,000 shares transferred to share capital and rest of money adjusted towards allotment)

		Share Allotment A/c	Dr.		1,80,000
		To Share Capital A/c				80,000
		To Securities Premium A/c				1,00,000
		[Share Allotment due on 40,000 shares of Rs 4.50 each (including Premium of Rs 2.50 each)]

		Bank A/c	Dr.		9,500
		To Share Allotment A/c				9,500
		(Share Allotment received)

		Share First and Final Call A/c	Dr.		2,40,000
		To Share Capital A/c				2,40,000
		(Share First and Final Call due on 40,000 shares of Rs 6 each)

		Bank A/c	Dr.		2,34,000
		To Share First and Final Call A/c				2,34,000
		(Share First and Final Call received on 39,000 shares of Rs 6 each)

		Share Capital A/c	Dr.		10,000
		Securities Premium A/c			2,500
		To Share Forfeiture A/c				4,000
		To Share Allotment A/c				2,500
		To Share First and Final Call A/c				6,000
		(1,000 shares were forfeited for non-payment of share allotment and share first and final call)

*Category*	*Shares Applied*	*Shares Allotted*
I	20,000	10,000
II	56,000	14,000
III	48,000	16,000
	1,24,000	40,000