Lotus Ltd. invited applications for issuing $\displaystyle 80,000$ equity shares of ₹ $\displaystyle 10$ each at a premium of ₹ $\displaystyle 4$ per share. The amount was payable as follows : On application ₹ $\displaystyle 5$ per share and On allotment ₹ $\displaystyle 9$ per share (included premium). Applications were received for $\displaystyle 1,40,000$ shares and allotment was made to all applicants on pro - rata basis. Money overpaid on applications was adjusted towards sums due on allotment. Rajiv, who had applied for $\displaystyle 1,400$ shares, failed to pay the allotment money. His shares were forfeited. Later on, these forfeited shares were reissued at ₹ $\displaystyle 9$ per share as fully paid up. Pass necessary journal entries for the above transactions in the books of Lotus Ltd.

OR

Tulip Ltd. invited applications for issuing $\displaystyle 2,40,000$ equity shares of ₹ $\displaystyle 10$ each at a premium of ₹ $\displaystyle 4$ per share. The amount was payable as under : On application ₹ $\displaystyle 4$ per share (including premium ₹ $\displaystyle 2$) On allotment ₹ $\displaystyle 4$ per share On first and final call ₹ $\displaystyle 6$ per share (including premium ₹ $\displaystyle 2$) Applications for $\displaystyle 3,00,000$ shares were received and pro-rata allotment was made to all the applicants. Excess application money received with applications was adjusted towards sums due on allotment. All moneys were duly received except from Rohini who had applied for $\displaystyle 7,500$ shares, and failed to pay allotment and first and final call. Pass the necessary journal entries for the above transactions in the books of Tulip Ltd. Open Calls-in-arrears and Calls-in-advance account, wherever necessary.

Books of Lotus Ltd. JOURNAL Dr. LF Cr. Date Particulars Amount Amount (₹) (₹) (i) Bank A/c Dr $\displaystyle 7,00,000$ To Equity Share Application A /c $\displaystyle 7,00,000$ (Application money received on $\displaystyle 1,40,000$ shares) _________________________________ (ii) Equity Share Application A/c Dr $\displaystyle 7,00,000$ To Equity Share Capital A/c $\displaystyle 4,00,000$ To Equity Share Allotment A/c $\displaystyle 3,00,000$ (Application money transferred to Share Capital and excess amount adjusted to Share Allotment A/c) _________________________________ (iii) $\displaystyle 7,20,000$ Equity Share Allotment A/c Dr. $\displaystyle 4,00,000$ To Equity Share Capital A/c $\displaystyle 3,20,000$ To Securities Premium / Securities Premium Reserve A/c (Share allotment money due at premium) $\displaystyle 11$ _________________________________ (iv) Bank A/c Dr. $\displaystyle 4,15,800$ Calls- in- Arrears A/c Dr. $\displaystyle 4,200$ To Equity Share Allotment A/c $\displaystyle 4,20,000$ (Allotment money received except on $\displaystyle 800$ shares) Alternatively Bank A/c Dr. $\displaystyle 4,15,800$ To Equity Share Allotment A/c $\displaystyle 4,15,800$ (Allotment money received except on $\displaystyle 800$ shares) _________________________________ (v) Equity Share Capital A/c Dr. Securities Premium / Securities $\displaystyle 8,000$ Premium Reserve A/c Dr. To Calls-in –Arrears A/c $\displaystyle 3,200$ To Share Forfeiture A/c $\displaystyle 4,200$ ($\displaystyle 800$ shares forfeited for non- payment of $\displaystyle 7,000$ allotment money) Alternatively Equity Share Capital A/c Dr. Securities Premium / Securities $\displaystyle 8,000$ Premium Reserve A/c Dr. To Equity Share Allotment A/c $\displaystyle 3,200$ To Share Forfeiture A/c $\displaystyle 4,200$ ($\displaystyle 800$ shares forfeited for non- payment of allotment money) $\displaystyle 7,000$ _________________________________ (vi) Bank A/c Dr. Share Forfeiture A/c Dr. $\displaystyle 7,200$ $\displaystyle 800$ To Equity Share Capital A/c (Reissue of forfeited shares) $\displaystyle 8,000$ ________________________________ (vii) Share Forfeiture A/c Dr. To Capital Reserve A/c $\displaystyle 6,200$ (Gain on reissue of shares transferred to $\displaystyle 6,200$ Capital Reserve) _________________________________ (b) Q. Tulip Ltd. invited applications for …… Ans. Books of Tulip Ltd. JOURNAL LF Dr. Cr. Date Particulars Amount Amount (₹) (₹) (i) Bank A/c Dr. $\displaystyle 12,00,000$ To Equity Share Application A/c $\displaystyle 12,00,000$ (Application money received on $\displaystyle 3,00,000$ shares) ________________________________ (ii) Equity Share Application A/c Dr. $\displaystyle 12,00,000$ To Equity Share Capital A/c $\displaystyle 4,80,000$ To Securities Premium A/c / Securities Premium Reserve A/c $\displaystyle 4,80,000$ To Equity Share Allotment A/c $\displaystyle 2,40,000$ (Application money transferred to Share Capital and Securities Premium; excess amount adjusted to Share Allotment A/c) ________________________________ (iii) $\displaystyle 9,60,000$ Equity Share Allotment A/c Dr. $\displaystyle 9,60,000$ To Equity Share Capital A/c (Allotment money due on $\displaystyle 2,40,000$ shares) ________________________________ (iv) Bank A/c Dr $\displaystyle 7,02,000$ Calls- in Arrears A/c Dr $\displaystyle 18,000$ To Equity Share Allotment A/c $\displaystyle 7,20,000$ (Allotment money received) ________________________________ (v) Equity Share First & Final Call A/c Dr $\displaystyle 14,40,000$ To Equity Share Capital A/c $\displaystyle 9,60,000$ To Securities Premium A/c / $\displaystyle 13$ Securities Premium Reserve A/c (Share First & Final Call money due) $\displaystyle 4,80,000$ ________________________________ (vi) Bank A/c Dr. $\displaystyle 14,04,000$ Calls- in- Arrears A/c Dr. $\displaystyle 36,000$ To Equity Share First & Final Call A/c $\displaystyle 14,40,000$ (Share first and final call money received except on $\displaystyle 6,000$ shares