Karur Ltd. invited applications for issuing …

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Karur Ltd. invited applications for issuing 2,40,000 equity shares of < 10 each at a premium of < 4 per share. The amount was payable as under : On application – < 4 per share (including premium < 2) On allotment – < 4 per share On first and final call – < 6 per share (including premium < 2) Applications for 3,00,000 shares were received and pro-rata allotment was made to all the applicants. Excess application money received on application was adjusted towards sums due on allotment. All calls were made and were duly received except from Rohini, who failed to pay allotment and first and final call on 7,500 shares applied by her. These shares were forfeited. Afterwards, 40% of the forfeited shares were re-issued at < 11 per share as fully paid-up. Pass the necessary journal entries in the books of Karur Ltd. Open call-in-arrears and call-in-advance accounts wherever necessary

Posted by Rajpal Singh Padiyar 1 year, 11 months ago

CBSE > Class 12 > Accountancy

2 answers

Harsh Dwivedi Dwivedi 1 year, 1 month ago

sir isme calls in advance 240000 kaise hogya ....

0Thank You

Basant Pandey 1 year, 11 months ago

Journal
Karur Ltd.

Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
	Bank A/c (WN1)	Dr.		12,00,000
	To Share Application A/c				12,00,000
	(Being application money received on 3,00,000 shares)
	Share Application A/c	Dr.		12,00,000
	To Share Capital A/c (WN1)				4,80,000
	To Securities Premium Reserve A/c				4,80,000
	To Calls-in-Advance A/c				2,40,000
	(Being amount transferred to share capital and excess adjusted)
	Share Allotment A/c	Dr.		9,60,000
	To Share Capital A/c				9,60,000
	(Being allotment due)

	Bank A/c (Bal. Fig.)	Dr.		7,02,000
	Call-in-Arrears A/c (WN2)	Dr.		18,000
	Calls-in-Advance A/c	Dr.		2,40,000
	To Share Allotment A/c				9,60,000
	(Being allotment money received except for 6,000 shares)
	Share First & Final Call A/c	Dr.		14,40,000
	To Share Capital A/c				9,60,000
	To Securities Premium A/c				4,80,000
	(Being call money due)
	Bank A/c	Dr.		14,04,000
	Calls-in-Arrears A/c	Dr.		36,000
	To Share First & Final Call A/c				14,40,000
	(Being call money received except on 6,000 shares)
	Share Capital A/c (6,000 × 10)	Dr.		60,000
	Securities Premium Reserve A/c (6,000 × 2)	Dr.		12,000
	To Share Forfeiture A/c (12,000 + 6,000)				18,000
	To Calls-in-Arrears A/c (18,000 + 36,000)				54,000
	(Being 6,000 shares forfeited for non-payment of allotment & call)
	Bank A/c (2,400 {tex}\times{/tex} 11)	Dr.		26,400
	To Share Capital A/c (2,400 {tex}\times{/tex} 10)				24,000
	To Securities Premium Reserve A/c (2,400 {tex}\times{/tex} 1)				2,400
	(Being 2,400 shares reissued at ₹11 fully paid-up)
	Share Forfeiture A/c (WN3)	Dr.		7,200
	To Capital Reserve A/c				7,200
	(Being gain on reissued shares transferred)

Working Notes:

Computation Table

Categories	Share Applied	Shares Allotted	Money received on Application @ ₹4 (including premium ₹2)	Money Transferred to Share Capital @ ₹2	Money Transferred to Securities Premium @ ₹2	Allotment due @ ₹4	Excess on Application	Refund
I	3,00,000	2,40,000	12,00,000	4,80,000	4,80,000	9,60,000	2,40,000	-
	3,00,000	2,40,000	12,00,000	4,80,000	4,80,000	9,60,000	2,40,000	-

Calculation of Shares allotted to Rohini:
Shares allotted to Rohini = (7,500 {tex}\times{/tex} 2,40,000/3,00,000) = 6,000 shares

Amount unpaid by Rohini	₹
Amount received on application (7,500 {tex}\times{/tex} 4)	30,000
Less: actual transfer to share capital (6,000 {tex}\times{/tex} 2)	12,000
Less: actual transfer to securities premium reserve (6,000 {tex}\times{/tex} 2)	12,000
Excess	6,000
Amount due on first call (6,000 {tex}\times{/tex} 4 )	24,000
Less: excess adjusted	(6,000)
Calls-in-arrears	18,000