Question

X Ltd., issued 50,000 shares of Rs. 10 each at a premium of Rs. 2 per share payable as follows :
Rs. 3 on Application
Rs. 6 on Allotment (including premium) and
Rs. 3 on call.
Applications were received for 75,000 shares and pro-rata allotment was made as follows :
To the applicants of 40,000 shares, 30,000 shares were issued and for the rest 20,000 shares were issued. All moneys due were received except the allotment and call money from Ram who had applied for 1,200 shares (out of the group of 40,000 shares). All his shares were forfeited. The forfeited shares were re-issued Rs. 7 per share fully paid-up. Pass necessary journal entries for the above transactions.

Answer 1

Amount received on allotment Rs. 2,20,500, Amount received on first & final call Rs. 1,47,300, Amount transferred to Capital Reserve Rs. 900.
Hint : Scheme of Allotment :
`{:(,"Applied","Allotted"),(,"40,000 Shares","30,000 Shares"),("Remaining",ul("35,000") " Shares",ul("20,000") " Shares"),(,ul("75,000"),ul("50,000")):}`