Question

A Ltd. invited applications for issuing 1,00,000 shares of Rs. 10 each at a premium of Rs. 1 per share. The amount was payable as follows:
`{:("On Application",,-,,"Rs. 3 per share,"),("On Allotment",,-,,"Rs. 3 per share (including premium),"),("On First Call",,-,,"Rs. 3 per share,"),("On Second and Final Call",,-,,"Balance amount."):}`
Applications for 1,60,000 shares were received. Allotment was made on the following basis:
`{:((i),"To applicants for 90,000 shares",:,"40,000 shares,"),((ii),"To applicants for 50,000 shares",:,"40,000 shares,"),((iii),"To applicants for 20,000 shares",:,"Full shares."):}`
Excess money paid on application is to be adjusted against the amount due on allotment and calls.
Rishabh, a shareholder, who applied for 1,500 shares and belonged to category (ii), did not pay allotment, first and second and final call money.
Another shareholder, Sudha, who applied for 1,800 shares and belonged to category (i) , did not pay the first and second and final call money.
All the shares of Rishabh and sudha were forfeited and were subsequently reissued at Rs. 7 per share fully paid.
Pass the necessary Journal entries in the books of A Ltd. Open Calls-in-Arrears Account and Calls-in-Advance Account wherever required.

Answer 1

Working Notes:
1. `{:("Category I: To applicants for 90,000 shares: 40,000 shares allotted",Rs.),("Application money received (90,000"xx"Rs.3)","2,70,000"),("Less: Application money adjusted on allotted shares (40,000"xx"Rs. 3)","1,20,000"),("Excess application money",bar(1,50,000)),("Less: Excess application money adjusted on allotment (40,000"xx"Rs.3)","1,20,000"),("Adjusted on first call (Calls-in-Advance)",bar(ul(ul(30,000)))) :}`
Category II: To applicants for 50,000 shares: 40,000 shares allotted
`{:(,Rs.),("Application money received (50,000"xx"Rs.3)","1,50,000"),("Less: Application money adjusted on allotted (40,000"xx"Rs.3)","1,20,000"),("Surplus application money adjusted on allotment",bar(ul(ul(30,000)))):}`
Total surplus application money adjusted on allotment = Rs. 1,20,000 (Category I) + Rs. 30,000 (Category II)
=Rs. 1,50,000.
2. Calculation of money due but not paid by Rishabh.
(a) No. of shares allotted to Rishabh (Category II) = `(40,000)/(50,000)xx 1,500 = 1,200 ` shares.
(b) `{:(,Rs.),("Application money received (1,500"xx"Rs.3)","4,500"),("Less: Application money required on allotted shares (1,200"xx"Rs.3)","3,600"),("Surplus application money adjusted on allotment",bar(ul(ul(" "900)))):}`
(c) Allotment money due (1,200`xx` Rs. 3 = Rs.3,600) but not received from Rishabh = Rs. 3,600 - Rs. 900 = Rs. 2,700.
(d) Amount not received on first call (1,200`xx` Rs.3) = Rs. 3,600.
(e) Amount not received on second call (1,200 `xx` Rs. 2) = Rs. 2,400.
3. Calculation of money due but not paid by Sudha:
(a) No. of shares allotted to Sudha (Category I ) = `(40,000)/(90,000) xx 1,500 ` = 800 shares.
(b)`{:(,Rs.),("Application money received (1,800"xx"Rs.3)","5,400"),("Less: Application money required on allotted shares (800"xx"Rs.3)","2,400"),("Excess application money received from Sudha",bar(3,000)),("Less: Excess application money adjusted on allotment(800"xx"Rs.3)","2,400"),("Surplus application money adjusted on first call",bar(ul(ul(" "600)))):}`
(c) First call money due but not received = (800`xx` Rs.3) - Rs. 600 = Rs. 1,800.
(d) Second and Final call money due but not received = 800 `xx` Rs. 2 = Rs. 1,600.