Murari Ltd. invited applications for issuing $\displaystyle 80,000$ equity shares of ₹ $\displaystyle 10$ each at a premium of ₹ $\displaystyle 4$ per share. The amount per share was payable as follows : ₹ $\displaystyle 5$ on application and ₹ $\displaystyle 9$ (including premium) on allotment. Applications were received for $\displaystyle 1,40,000$ shares and allotment was made on pro-rata basis to all the applicants. Money overpaid on application was utilised towards sums due on allotment. The allotment money was duly received except from Sameer who had applied for $\displaystyle 1,400$ shares. His shares were forfeited. Pass the necessary journal entries in the books of Murari Ltd. to record the above transactions. Open calls-in-arrears account wherever required.

OR

Kavya Ltd. invited applications for issuing $\displaystyle 30,000$ shares of ₹ $\displaystyle 10$ each at a premium of ₹ $\displaystyle 2$ per share. The amount was payable as follows : On application and allotment ₹ $\displaystyle 7$ per share On first and final call ₹ $\displaystyle 5$ per share (including ₹ $\displaystyle 2$ premium) Applications were received for $\displaystyle 33,000$ shares. Applications for $\displaystyle 3,000$ shares were rejected and money returned to the applicants. Applications for $\displaystyle 30,000$ shares were accepted in full. The application and allotment money was duly received. The first and final call was made and money received except from a shareholder holding $\displaystyle 500$ shares. His shares were forfeited. All these shares were re-issued to Kartik as fully paid for ₹ $\displaystyle 8$ per share. Pass necessary journal entries for the above transactions in the books of Kavya Ltd. Open calls-in-arrears account wherever required.

Books of Murari Ltd. Journal Date Particulars LF Dr. Cr. Amount Amount (₹) (₹) 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) 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 account and share allotment account) Equity Share Allotment A/c Dr. $\displaystyle 7,20,000$ To Equity Share Capital A/c $\displaystyle 4,00,000$ To Securities Premium A/c $\displaystyle 3,20,000$ ( Amount due on allotment) 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) Equity Share Capital A/c Dr. $\displaystyle 8,000$ Securities Premium A/c Dr. $\displaystyle 3,200$ To Share forfeiture A/c $\displaystyle 7,000$ To Calls in arrears A/c $\displaystyle 4,200$ ($\displaystyle 800$ shares forfeited for non payment of allotment money) Q. (b) Kavya Ltd. invited applications ……… Ans. Books of Kavya Ltd. Journal Date Particulars LF Dr. Cr. Amount Amount (₹) (₹) Bank A/c Dr. $\displaystyle 2,31,000$ To Share Application and Allotment A/c $\displaystyle 2,31,000$ (Application money received on $\displaystyle 33,000$ shares) Share Application and Allotment A/c Dr. $\displaystyle 2,31,000$ To Share Capital A/c $\displaystyle 2,10,000$ To Bank A/c $\displaystyle 21,000$ (Application money transferred to share capital account and balance refunded) Share First and final call A/c Dr. $\displaystyle 1,50,000$ To Equity Share Capital A/c $\displaystyle 90,000$ To Securities Premium A/c $\displaystyle 60,000$ ( Amount due on first and final call) Bank A/c Dr. $\displaystyle 1,47,500$ Calls in arrears A/c Dr. $\displaystyle 2,500$ To Share First and final call A/c $\displaystyle 1,50,000$ (First and final call received except on $\displaystyle 500$ shares) Share Capital A/c Dr. $\displaystyle 5,000$ Securities Premium A/c Dr. $\displaystyle 1,000$ To Share forfeiture A/c $\displaystyle 3,500$ To Calls in arrears A/c $\displaystyle 2,500$ ($\displaystyle 500$ shares forfeited for non payment of first and final call) $\displaystyle 12$ of $\displaystyle 25$ Bank A/c Dr. $\displaystyle 4,000$ Share forfeiture A/c Dr. $\displaystyle 1,000$ To Share Capital A/c $\displaystyle 5,000$ (Forfeited shares reissued as fully paid for ₹$\displaystyle 8$ per share) Share Forfeiture A/c Dr. $\displaystyle 2,500$ To Capital Reserve A/c $\displaystyle 2,500$ (Gain on reissue of forfeited shares transferred to Capital Reserve A/c)