19. Alfa Limited invited applications for 4,00,000 of its equity shares of Rs 10 each on the following terms :
| Payable on application | Rs.5 per share |
| Payable on allotment | Rs.3 per share |
| Payable on first and final call | Rs.2 per share |
Applications for 5,00,000 shares were received. It was decided :
(a) to refuse allotment to the applicants for 20,000 shares;
(b) to allot in full to applicants for 80,000 shares;
(c) to allot the balance of the available shares’ pro-rata among the other applicants; and
(d) to utilise excess application money in part as payment of allotment money.
One applicant, whom shares had been allotted on pro-rata basis, did not pay the amount due on allotment and on the call, and his 400 shares were forfeited. The shares were reissued @ Rs 9 per share. Show the journal and prepare Cash book to record the above.
Books of Alfa Limited
Journal
Working Note:
Calculation of amount not received on first call:
Shares applied by Vibha:
=(`\frac{1,00,000}{75,000}`) X 750
= 1,000 shares
Amount received on 1,000 shares @ Rs 4 each
= 4000 Rs
Amount transferred to share capital a/c (750 X 4)
= 3000 Rs
Excess application and allotment money received
= 1000 Rs
Amount due on first call @ Rs 3 each: 2250 Rs
Amount not received on first call
= 1,250 Rs (2250-1000)
Calculation of amount not received on second call:
Shares allotted to Monika
= (`\frac{75,000}{1,00,000}`) X 1000
= 750 shares
Amount not received on second call
= Rs 2250 (750 X 3)