Question

X Ltd. invited applications for issuing 50,000 equity shares of Rs 10 each. The amount was payable as follows:

On Application: Rs 2 per share

On Allotment: Rs 2 per share

On Second and Final Call: Balance amount.

Applications for 70,000 shares were received. Applications for 10,000 shares were rejected and the application money was refunded. Shares were allotted to the remaining applicants on a pro-rata basis and excess money received with applications was transferred towards sums due on allotment and calls if any. Gopal, who applied for 600 shares, paid his entire share money with the application. Ghosh, who had applied for 6,000 shares, failed to pay the allotment money and his shares were immediately forfeited. These forfeited shares were re-issued to Sultan for Rs 20,000; Rs 4 per share paid up. The first call money and the second and final call money was called and duly received.

Pass necessary journal entries for the above transactions in the books of X Ltd. Open Calls-in-Advance Account and Calls-in-Arrears Account wherever necessary.

Answer 1

Computation Table
Categories	Shares Applied	Shares Allotted	Money received on Application @ Rs 2 each	Money transferred to Share Capital @ Rs 2 each	Surplus	Allotment due @ Rs 2 each	Call in Advance @ Rs 6 each	Refund
I	10,000	NIL	20,000	NIL	20,000	NIL	NIL	20,000
II	59,400	49,500	1,18,800	99,000	19,800	19,800	NIL	NIL
III	600	500	6,000	1,000	5,000	1,000	3,000	1,000
	70,000	50,000	1,44,800	1,00,000	44,800	20,800	3,000	21,000

Calculation of Amount Due towards Ghosh: 

Shared Applied: 6,000 

Shares Allotted: 5,000 

Application due towards Ghosh: Rs 10,000 

Application money received from Ghosh: Rs 12,000 

Excess application money received (to be adjusted against allotment): Rs 2,000

Allotment money not received (Arrears): Rs 8000 (10,000 - 2,000)