Amrit Dhara Ltd.' invited applications for issuing 80,000 Equity Shares of Rs. 10 each. The amount was payable as follows: {:("On application and allotment",,-,,"Rs. 2 per share,"),("On first call",,-,,"Rs. 4 per share,"),("On second and final call",,-,,"the balance."):} Applications for 1,00,000 shares were received. Shares were allotted on pro rata basis to all the applicants. Excess money received with applications was adjusted towards sums due on first call. Manohar who had applied for 2,000 shares failed to pay the first call and his shares were immediately forfeited. Aftcrwards cecond and final call was made. Mohan who was allotted 2,400 sharesfailed to pay thesecond and final call. His shares were also forfeited. All the forfeited shares were reissued at Rs. 9 per share as fully paid-up. Pass necessary Journal entries in the books of the company for the above transactions.

Amrit Dhara Ltd.' invited applications for issuing 80,000 Equity Share

1.	Amrit Dhara Ltd.' invited applications for issuing 80,000 Equity Shares of Rs. 10 each. The amount was payable as follows: {:("On application and allotment",,-,,"Rs. 2 per share,"),("On first call",,-,,"Rs. 4 per share,"),("On second and final call",,-,,"the balance."):} Applications for 1,00,000 shares were received. Shares were allotted on pro rata basis to all the applicants. Excess money received with applications was adjusted towards sums due on first call. Manohar who had applied for 2,000 shares failed to pay the first call and his shares were immediately forfeited. Aftcrwards cecond and final call was made. Mohan who was allotted 2,400 sharesfailed to pay thesecond and final call. His shares were also forfeited. All the forfeited shares were reissued at Rs. 9 per share as fully paid-up. Pass necessary Journal entries in the books of the company for the above transactions.
Answer» SOLUTION : Working Nots: Number of SHARES allotted to Manohar = `(80,000)/(1,00,000) xx 2,000` = 1,600 shares. (a) Application and Allotment Money paid by Manohar = `2,000 xx Rs. 2 = Rs. 4,000`. (b) Application and Allotment Money required `=1,600 xx Rs. 2 = Rs. 3,200`. (C) Surplus application and allotment money [(a)-(b)] =Rs.4,000 - Rs. 4,000 - Rs. 3,200 = Rs. 800. (d) First CALL money due on 1,600 shares = ` 1,600 xx Rs. 6,400`. (e) Calls-in-Arrears `[(a)-(c)] = Rs. 6,400- Rs. 800 = Rs. 5,600`.

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