Sameer and Company Limited invited applications for 25,000 Equity shares of ₹ 100 each payable as:
₹ 25 on application
₹ 50 on allotment
₹ 25 on first and final call
Applications were received for 30,000 Equity shares and pro-rata allotment were made to all. All the money was dul

Question

Sameer and Company Limited invited applications for 25,000 Equity shares of ₹ 100 each payable as:
₹ 25 on application
₹ 50 on allotment
₹ 25 on first and final call
Applications were received for 30,000 Equity shares and pro-rata allotment were made to all. All the money was duly received except first and final call on 2,500 Equity shares. Enter the above transactions in the books of Sameer and Company Limited.

Accepted Answer

>

> [!TLDR]
> Sameer & Co. offered 25,000 equity shares of Rs. 100 (Rs. 25 application + Rs. 50 allotment + Rs. 25 first & final call). Applications for 30,000 shares were allotted pro-rata (ratio 30,000 : 25,000 = 6 : 5). Excess application money of Rs. 1,25,000 is transferred to allotment; the first & final call on 2,500 shares (Rs. 62,500) stays unpaid as Calls-in-Arrears.
>
> **Step 1 - Pro-rata and money working**
>
> | Particulars | Working | Amount Rs. |
> | --- | --- | --- |
> | Application money received | 30,000 x 25 | 7,50,000 |
> | Application money on allotted shares | 25,000 x 25 | 6,25,000 |
> | Excess adjusted to allotment | 7,50,000 - 6,25,000 | 1,25,000 |
> | Allotment due | 25,000 x 50 | 12,50,000 |
> | Less: excess adjusted | | 1,25,000 |
> | Allotment received in cash | | 11,25,000 |
> | First & final call due | 25,000 x 25 | 6,25,000 |
> | Less: unpaid on 2,500 shares (Calls-in-Arrears) | 2,500 x 25 | 62,500 |
> | First & final call received | | 5,62,500 |
>
> **Step 2 - Journal entries in the books of Sameer and Company Limited**
>
> | Particulars | L.F. | Dr. Rs. | Cr. Rs. |
> | --- | --- | --- | --- |
> | Bank A/c ..... Dr. | | 7,50,000 | |
> |   To Equity Share Application A/c | | | 7,50,000 |
> | (Application money on 30,000 shares @ Rs. 25) | | | |
> | Equity Share Application A/c ..... Dr. | | 7,50,000 | |
> |   To Equity Share Capital A/c | | | 6,25,000 |
> |   To Equity Share Allotment A/c | | | 1,25,000 |
> | (Application money transferred; excess adjusted to allotment) | | | |
> | Equity Share Allotment A/c ..... Dr. | | 12,50,000 | |
> |   To Equity Share Capital A/c | | | 12,50,000 |
> | (Allotment due on 25,000 shares @ Rs. 50) | | | |
> | Bank A/c ..... Dr. | | 11,25,000 | | …

Particulars	Working	Amount Rs.
Application money received	30,000 x 25	7,50,000
Application money on allotted shares	25,000 x 25	6,25,000
Excess adjusted to allotment	7,50,000 - 6,25,000	1,25,000
Allotment due	25,000 x 50	12,50,000
Less: excess adjusted		1,25,000
Allotment received in cash		11,25,000
First & final call due	25,000 x 25	6,25,000
Less: unpaid on 2,500 shares (Calls-in-Arrears)	2,500 x 25	62,500
First & final call received		5,62,500

Particulars	Dr. Rs.	Cr. Rs.
Bank A/c ..... Dr.	7,50,000
To Equity Share Application A/c		7,50,000
(Application money on 30,000 shares @ Rs. 25)
Equity Share Application A/c ..... Dr.	7,50,000
To Equity Share Capital A/c		6,25,000
To Equity Share Allotment A/c		1,25,000
(Application money transferred; excess adjusted to allotment)
Equity Share Allotment A/c ..... Dr.	12,50,000
To Equity Share Capital A/c		12,50,000
(Allotment due on 25,000 shares @ Rs. 50)
Bank A/c ..... Dr.	11,25,000

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