A Company issued 6,000 shares of Rs. 100 each payable as follows : On application : Rs. 30 On allotment : Rs. 45 On first and final call : Rs. 25 Application were received for 9,000 shares. Among…

a) Share Application Account

Step 1: Determine the number of shares allotted on pro-rata basis

• Total applications received: 9,000 shares
• Applications for 3,000 shares were allotted full.
• Remaining shares to be allotted: 6,000 – 3,000 = 3,000 shares
• Applications for 4,000 shares were allotted on pro-rata basis.
• Pro-rata allotment ratio: 3,000 shares / 4,000 applicants = 3/4
• Thus, applicants for 4,000 shares were allotted 3,000 shares (3/4 of 4,000).

Step 2: Calculate application money received

• Total shares allotted: 3,000 (full) + 3,000 (pro-rata) = 6,000 shares
• Application money per share: Rs. 30
• Total application money received: 6,000 × Rs. 30 = Rs. 180,000

Step 3: Calculate excess application money

• Total applications received: 9,000 shares
• Application money received: 9,000 × Rs. 30 = Rs. 270,000
• Excess application money: Rs. 270,000 – Rs. 180,000 = Rs. 90,000

Journal Entry for Share Application Account

Date        Particulars                     L.F.       Amount (Rs.)
2082/01/01  To Share Application A/c        -         270,000
           Dr. (Being application money received)
           By Bank A/c                      -         270,000

2082/01/01  To Share Capital A/c             -         600,000
           To Share Allotment A/c            -         270,000
           To Share First & Final Call A/c   -         150,000
           Dr. (Being allotment and call money due on 6,000 shares)
           By Share Application A/c          -         270,000
           By Share Application (Excess) A/c -         90,000

2082/01/01  To Share Allotment A/c           -         270,000
           To Share First & Final Call A/c    -         150,000
           Dr. (Being excess application money adjusted)
           By Share Application (Excess) A/c  -         90,000
           By Bank A/c                       -         330,000

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b) Share Allotment Account

Step 1: Calculate allotment money due

• Allotment money per share: Rs. 45
• Total allotment money due: 6,000 × Rs. 45 = Rs. 270,000

Step 2: Adjust excess application money

• Excess application money available: Rs. 90,000
• Allotment money adjusted from excess: Rs. 90,000
• Remaining allotment money to be paid: Rs. 270,000 – Rs. 90,000 = Rs. 180,000

Journal Entry for Share Allotment Account

Date        Particulars                     L.F.       Amount (Rs.)
2082/01/15  To Share Allotment A/c           -         270,000
           Dr. (Being allotment money due)
           By Bank A/c                      -         180,000
           By Share Application (Excess) A/c -         90,000

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c) First and Final Call Account

Step 1: Calculate call money due

• Call money per share: Rs. 25
• Total call money due: 6,000 × Rs. 25 = Rs. 150,000

Step 2: Adjust excess application money (if any)

• No excess money remains after allotment adjustment.
• Total call money to be received: Rs. 150,000

Step 3: Calculate call money received

• Call money not received on 500 shares: 500 × Rs. 25 = Rs. 12,500
• Call money received: Rs. 150,000 – Rs. 12,500 = Rs. 137,500

Journal Entry for First and Final Call Account

Date        Particulars                     L.F.       Amount (Rs.)
2082/02/15  To Share First & Final Call A/c  -         150,000
           Dr. (Being call money due)
           By Bank A/c                      -         137,500
           By Share Capital A/c              -         12,500
           (Being call money not received on 500 shares)

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Final Position of Share Capital Account

Share Capital A/c (Rs.)
- Share Application (Full): 3,000 × Rs. 100 = 300,000
- Share Application (Pro-rata): 3,000 × Rs. 100 = 300,000
**Total Share Capital = Rs. 600,000**