12th Class
Accountancy
Sample Paper
Accountancy - Sample Paper-8
question_answer
On 1st April, 2017, Vardhman Ltd made an issue of 2,00,000 equity shares of Rs. 10 each at a premium of Rs. 8 per share, payable as follows:
Rs. 7 on application (including Rs. 2 premium)
Rs. 4 on allotment (including Rs. 2 premium)
Rs. 3 on first call (including Rs. 2 premium)
Rs. 4 on second and final call (including Rs. 2 premium)
Applications were received for 3,00,000 shares, of which applications for 60,000 shares were rejected and their money were refunded. Rest of the applicants were issued shares on pro-rata basis and their excess money was adjusted towards allotments. X, to whom 400 shares were allotted, failed to pay the allotment money and his shares were forfeited after allotment, Y, who applied for 960 shared failed to pay the two calls and on his such failure, his shares were forfeited. Z, who was allotted 500 shares did not pay final call. 1,000 forfeited shares reissued as fully paid on receipt of Rs. 8 per share, the whole of Y's shares being included. Prepare the cash 'book and pass the necessary journal entries. Or A company offered 10,000 shares of Rs. 10 each payable as Rs. 2 on application, Rs. 3 on allotment, Rs. 3 on first call and Rs. 2 on the final call. The public applied for 15,000 shares. The shares were allotted on a pro-rata basis to the applicants of 12,000 shares. All shareholders paid the allotment money except one shareholder who was allotted 200 shares. These shares were forfeited. The first call was made thereafter. The forfeited shares were re-issued @ Rs. 9 per share, Rs. 8 paid-up. The final call was not yet made. You are required to prepare the cash book and pass the journal entries.
(Being the discount on reissue adjusted against the credit balance of forfeited shared account)
Forfeited Shares A/c
Dr
4,880
To Capital Reserve A/c (WN 3)
4,880
(Being the profit on reissue transferred to capital reserve)
Working Notes (i) (a) Calculation of excess amount received from X on application 400 shares were allotted to X Therefore, he must have applied for \[\left( \frac{2,40,000}{2,00,000}\times 400 \right)=480\,Shares\] Excess application money received from X \[\left( 480-400\text{ }shares=80\text{ }shares \right)\times 7=Rs.\,560\]
(b) Money due from X on allotment
Amt (Rs.)
400 shares X Rs. 4
1,600
(-) Excess applied money adjusted
(560)
Money due from X
1,040
(c) Money received on allotment
Total amount due on allotment \[\left( Rs.\,2,00,000\times 4 \right)\]
8,00,000
(-) Excess application money adjusted
2,80,000
5,20,000
(-) Money not paid by X (b)
(1,040)
Net amount received on allotment
5,18,960
(ii) Y applied for 960 shares. Therefore, he must have been allotted \[\left( \frac{2,00,000}{2,40,000}\times 960 \right)=800\,Shares\] He has not paid first and second call money. As such, (a) First call money will be received on 1,99,600 shares - 800 shares of Y = 1,98,800 shares (b) Second call money will be received on 1,99,600 shares - 800 shares of y - 500 shares of z =1,98,300 Shares (iii) Amount transferred to capital reserve: 1,000 shares have been reissued which include 800 shares of Z and the balance 200 of X.
(a) Amount forfeited in respect of Y's shares
5,600
(b) Amount forfeited in respect of Y's shares \[\left( \frac{2,560}{400}\times 200 \right)\]
1,280
6,880
(-) Loss on reissue of 1,000 share @ Rs. 2 each
(2,000)
Profit on reissue to be transferred to capital reserve
Rs. 4,880
Or JOURNAL
Date
Particulars
LF
Amt (Dr)
Amt (Cr)
Share Application A/c
Dr
24,000
To Share Capital A/c \[(10,000\times 2)\]
20,000
To Share Allotment A/c
4,000
(Being the application money adjusted)
Share Allotment A/c
Dr
30,000
To Share Capital A/c \[\left( 10,000\times 3 \right)\]
