Page 72 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Particulars
Date
Cr. ( )
Dr. ( )

Bank Account
To Share application Account

(Being receipt of application money on 18000 shares Dr. L.F. 45,000 45,000
@ 2.50 per share)
Share Application Account Dr. 45,000 45,000
To Share Capital Account
(Being application money transferred to share capital
account) Unit 3: Reissue of Forfeited Shares and Bonus Issue
Share Allotment Account Dr. 81,000
Discount on Issue of Shares Account Dr. 9,000
To Share Capital Account 90,000
(Being allotment money due on 18,000 shares @ 5 Notes
per share at a discount of 5%)
Bank Account Dr. 79,650
To Share Allotment Account 79,650
(Being allotment money received on 1700 shares)
Share Final Call Account Dr. 45,000
To Share Capital Account 45,000
(Being final call money due on 18,000 shares 2.5 per
share)
Bank Account Dr. 44,250 44,250
To Share Final Call Account
(Being final call money received on 17,700 shares)
Share Capital Account Dr. 3,000
To Share Allotment Account. 1,350
To Share Final Call Account 750
To Discount on Issue of Shares Account 150
To Forfeited Shares Account 750
(Being forfeiture of 300 shares for non-payment of
allotment and final call money)
Bank Account Dr. 1,500
Discount on Issue of Shares Account Dr. 100
Forfeited Shares Account Dr. 400
To Share Capital Account 2,000
(Being reissue of 200 forfeited shares @ 7.5 per
shares as fully paid).
Forfeited Shares Account Dr. 100
To Capital Reserve Account 100
(Profit on reissue of 200 forfeited shares transferred.)

Working Note:
Profit on reissue of 200 forfeited shares
750
Forfeited amount on 200 shares ´ 200 500
300
Less: loss on reissue of 200 share 400

Profit on reissue of 200 forfeited Shares transferable to Capital Reserve. 100

Example 6: Seema Limited offered to public 1,00,000 shares of 100 each at a premium of
10 each. The payment was to be made as follows:
On application 20
On allotment 40 including premium

On first and final call 50
Applications were received for 1,82,500 shares. Applications for 20,000 were accepted in full,
those for 2,500 were rejected and on the remaining applications 80,000 shares were allotted, on
pro-rata basis. Varun who had applied for 200 shares and to whom 100 shares had been allotted
failed to pay the balance of allotment money due from him. His shares were forfeited and then
reissued to Ankur as 60 (including premium of 10) per share paid up @ 40 per share. Gitesh
another shareholder failed to pay call money on 50 shares held by him. His shares were also

LOVELY PROFESSIONAL UNIVERSITY 65