= 1,600 shares. = 2,400 (A) application: Chatterjee has been allotted 1,000 shares. He must have applied for (80,000 = 50,000) x 1,000 Excess application money received from Chatterjee = 1,600 shares - 1,000 = 600 shares x4 (B) Amount due from Chatterjee on allotment: 1,000 shares x 5 Less : Excess received from Chatterjee on application (Out of this amount, 1,000 x 2 = 32,000 is part of share capital and balance of 3400 is a part of securities premium) Amount not paid on allotment (C) Total amount due on allotment: 50,000 shares x 5 Less : Excess amount received on application 35,000 32,400 954 32,600 2,50,000 1,20,000 1,30,000 2,600 1,27,400 Less : Amount not paid by Chatterjee (2) Securities Premium Reserve related to Chatterjee's shares is 1,000 shares x 33 = 33,000. Out of this amount 3400 is already received as surplus application money. Hence, balance of 32,600 not received will be debited in the entry for forfeiture of shares. (3) Amount transferred to Capital Reserve: Forfeited amount of 1,000 shares = 36,000 Hence, Forfeited amount on 500 shares (6,000 + 1,000) x 500 = 3,000 Less : Loss on Reissue : 500 shares @ 1 2,500 500 Q. 75. Kochi Silk Ltd. issued a prospectus inviting applications for 40,000 shares of 10 each at a premium of 78 per share, payable as follows: On Application *6 (including premium) On Allotment 36 (including 2 premium) On First Call 33 (including 2 premium) On Second & Final Call 3 (including 2 premium) Applications were received for 80,000 shares and pro-rata allotment was made on the applications for 70,000 shares. It was decided to utilise excess application money towards the sums due on allotment. X, to whom 1,200 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call his shares were forfeited. Y, who applied for 3,500 shares failed to pay the two calls and on his such failure, his shares were also forfeited. of the shares forfeited, 2,500 shares were reissued as fully paid up for 9 per share, the whole of Ys shares being included. Prepare Cash Book and Journal entries