Question

Centurian Ltd. invited applications for issuing 2,00,000 equity shares of ₹ 10 each at a premium of ₹ 20 per share. The amount was payable as follows: On Application and Allotment – ₹ 20 per share (including premium ₹ 17 per share)
On First and Final call – ₹ 10 per share (including premium ₹ 3 per share)
Applications were received for 3,00,000 equity shares and allotment was made to the applicants as follows: (i) Applicants for 2,00,000 shares were allotted 1,50,000 shares.
(ii) Applicants for 1,00,000 shares were allotted 50,000 shares.
Excess money received on application and allotment was adjusted towards sums due on first and final call. Deepali, who had applied for 2,000 shares, failed to pay the first and final call money. Her shares were subsequently forfeited. Deepali belonged to Category (i).
Pass necessary journal entries for the above transactions in the Books of Centurian Ltd.
Open Calls-in-Arrears and Calls-in-Advance account, wherever necessary.

Hint:

Adjust excess application money against future calls and remember to calculate correct forfeiture value for defaulted shares.

Answer 1

Bank Account Debited ₹ 60,00,000
To Share Application and Allotment Account ₹ 60,00,000
Share Application and Allotment Account Debited ₹ 60,00,000
To Share Capital Account ₹ 30,00,000 To Securities Premium Account ₹ 30,00,000
Share First & Final Call Account Debited ₹ 20,00,000
To Share Capital Account ₹ 7,00,000 To Securities Premium Account ₹ 3,00,000
Bank Account Debited ₹ 19,70,000
Calls-in-Arrears Account Debited ₹ 30,000 To Share First & Final Call Account ₹ 20,00,000
Share Capital Account Debited ₹ 14,000
Securities Premium Account Debited ₹ 6,000 To Share Forfeiture Account ₹ 16,000 To Calls-in-Arrears Account ₹ 4,000