Ownclasses

Jeevan Dhara Ltd. invited applications for issuing 1,20,000 equity shares of Rs 10 each at a premium of Rs 2 per share. The amount was payable as follows:
On application Rs 2 per share.
On allotment Rs 5 per share (including premium)
On first and final call balance.
Applications for 1,50,000 share were received. Shares were allotted to all the applicants on pro-rata basis. Excess money received on applications was adjusted towards sums due on allotment. All calls were made. Manu who has applied for 3,000 share failed to pay the amount due on allotment and first and final call. Madhur who was allotted 2,400 shares failed to pay the first and final call. Shares of both Manu and Madhur were forfeited. The forfeited shares were re-issued at Rs 9 per share as fully paid up.
Pass necessary journal entries for the above transactions in the books of Jeevan Dhara Ltd.

Answer







Working Note:
Calculation of amount received on allotment, first and final call
Shares allotted to Manu = (1,20,000/1,50,000)* 3000 = 2400 shares
Amount received on 3000 shares of Rs 2 each = Rs 6000
Amount transferred to share capital a/c = 2400*2 = Rs 4800
Excess money received on application = Rs 1200
Amount due on allotment @ Rs 5 each = 12000 i.e. (7200+4800)
Amount not received on securities premium= 4,800
Amount not received on allotment = Rs 6000 i.e. (7200-1200)
Amount not received on first and final call = 12000 i.e. (2400*5)

Calculation of amount not received from Madhur:
Amount not received on first and final call = 12000 i.e. (2400*5)