Page 74 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Date
L.F.
Particulars
Cr. ( )
Equity Share Application Account

To Equity Share Capital Account
16,00,000
To Equity Share Allotment Account

(Being transfer of application money to
share capital and excess application money
to allotment account).
Dr.

Equity Share Allotment Account
40,00,000
30,00,000

To Equity Share Capital Account

10,00,000
To Equity Share Premium Account
(Being allotment money due on 1,00,000
shares @ 40 per share including premium)
Dr.
5,000
Equity Share Capital Account (100 × 50)

Share Premium Account (100 × 10)
1,000

Dr.
To Equity Share Allotment Account

2,000
To Forfeited Shares Account (200 × 20)

4,000
(Being forfeiture of 100 shares for
non-payment of allotment money) Dr. 36,00,000 Dr. ( ) 20,00,000
Forfeited Shares Account Dr. 2,000
To Equity Share Capital Account 1,000
To Share Premium Account 1,000
(Being reissue of 100 forfeited shares @ 60
each as paid up 40 each) Unit 3: Reissue of Forfeited Shares and Bonus Issue
If cash transaction is not recorded in
cashbook directly, entry will be: Dr. 4,000
Bank Account (100 × 40) Dr. 2,000
Forfeited Shares Account (100 × 20) Notes
To Equity Share Capital Account 5,000
(100 × 50)
1,000
To Share Premium Account (100 × 10)
Forfeited Shares Account Dr. 2,000
To Capital Reserve Account 2,000
(Profit on reissue of 100 forfeited shares
transferred to capital reserve a/c i.e.,
4000 – 2000)
Equity Share First and Final Call Account Dr. 50,00,000
To Equity Share Capital Account 50,00,000
(Being first and final call money due on
1,00,000 shares @ 50 per share)
Equity Share Capital Account (50 × 100) Dr. 5,000
To Equity Share First and Final Call 2,500
Accounts (50 × 50) 2,500
To Forfeited Shares Account
(Being forfeiture of 50 shares for non-
payment of first & final call money)
Forfeited Shares Account Dr. 2,500
To Capital Reserve Account 2,500
(Profit i.e., entire forfeited amount on reissue
transferred to capital reserve a/c)

Working Note:
1. Analytical Table for Adjustment of Excess Application Money
No. of No. of Application Application Excess Allotment Excess Balance Refund
shares shares money money due application money Transfer due on ( )
applied allotted received on allotted money due to allotment
for ( ) shares ( ) ( ) allotment ( )
( ) money
( )
20,000 20,000 4,00,000 4,00,000 Nil 8,00,000 — 8,00,000 —
2,500 Nil 50,000 — — — — — 50,000
1,59,800 79,900 31,96,000 15,98,000 15,98,000 31,96,000 15,98,000 15,98,000 —
200 100 4,000 2,000 2,000 4,000 2,000 2,000 —
1,82,500 1,00,000 36,50,000 20,00,000 16,00,000 40,00,000 16,00,000 24,00,000 50,000
2. Amount Received on allotment
Total amount due on allotment (1,00,000 40) 40,00,000
–Excess application money adjusted in allotment (as per above table) 16,00,000
Balance receivable on allotment 24,00,000
– Amount not paid by Varun on allotment 2,000
23,98,000
3. Share Premium Account

To equity share allotment a/c 1,000 By E share allotment account 10,00,000
To balance c/d 10,01,000 By forfeited shares account 1,000
By bank account 1,000
10,02,000 10,02,000

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