hb

1,200 1,200 Share Forfeiture A/C Dr. To Share Capital A/C (600 of the forfeited shares reissued as fully paid on receipt of 78 per share) Share Forfeiture A/C Dr. To Capital Reserve A/C (Profit on 600 reissued shares transferred to Capital Reserve A/C) 1,500(2) 1,500 Working Notes: (1) (A) Shareholder holding 1,000 shares must have applied for 1,000 X (60,000 = 40,000) = 1,500 shares Excess application money received from him : 1,500 shares - 1,000 shares = 500 shares x3 = 1,500 (B) Amount due on allotment on these shares 1,000 shares x 4 = 4,000 Less : Excess received on these shares on application 1,500 Amount not received on allotment 2,500 (C) Total amount due on allotment: 50,000 shares x 24 2,00,000 Less : Excess received on application 60,000 Balance due 1,40,000 Less : Amount not received on allotment 2,500 Net amount received on allotment in Cash 1,37,500 (2) Profit on 600 re-issued shares = (4,500 + 1,000) x 600 = 2,700 Less : Loss on Re-issue 1,200 Profit transferred to Capital Reserve 1,500 946 Q. 58. Jay Ltd. issued a prospectus inviting applications for 1,00,000 shares of 10 each. These shares were issued at par on the following terms: On application 32.50, on allotment 2.50, on first call 33 and on final call the balance. Applications were received for 1,35,000 shares. Allotments were made on the following basis: (i) To applicants for 25,000 shares - in full (ii) To applicants for 60,000 shares - 45,000 shares (iii) To applicants for 50,000 shares 30,000 shares All excess amount paid on application is to be adjusted against amount due on allotment. The shares were fully called and paid-up except the amount of allotment, first and final call not paid by those who applied for 4,000 shares of the group applying for 50,000 shares. All the shares on which calls were not paid were forfeited by the Board of Directors. 1,800 forfeited shares were re-issued as fully paid on receipt of 39 per share. Prepare Cash Book and Journal entries to record the above