Working Notes:
`{:(1.,"10,000 shares were issued to the applicants for 12,000 shares.",),(,:." Ratio of allotment = 5:6",),(,"One who was allotted 5 shares had applied for 6 shares",),(,:. " A shareholder who was allotted 200 shares had applied for = 6/5"xx"200=240 share",),(,"Total application money paid by shareholder on "," Rs."),(,"240 share applied for @ Rs. 2 per share"," 480"),(,"Less: Application money on 200 shares allotted",),(," transferred to share capital"," 400"),(,"Excess Application Money to be adjusted against shares allotment",ulbar(ul(" "80))),(,"Allotment money due on 200 shares @ Rs. 3 per share"," 600"),(,"Less: Excess Application Money to be adjusted against Shares Allotment" ," 80"),(,"Allotment money in arrears",ulbar(ul(" "520))),(2.,"Calculation of allotment money received:"," Rs."),(,"Allotment money due (Gross)","30,000"),(,"Less: Excess Application money to be adjusted (2,000"xx"Rs. 2)"," 4,000"),(,,bar(26,000)),(,"Less: Allotment money in arrears (WN 1)"," 520"),(,"Amount received on allotment",ulbar(ul(25,480))):}`
3. Shares have been forfeited before the first call. Called-up money up to allotment is Rs. 5 per share. But shares have been reissued before the second call for Rs. 9 as Rs. 8 paid-up. It means Rs. 8 is transferred to Share Capital Account and Rs. 1 be transferred to Securities Premium Reserve Account. No discount has been allowed on the reissue of forfeited shares. Therefore, money forfeited on these shares is a gain and transferred to Capital Reserve.