Question

11. BOSS Itd. Issued applications for 1,00,000 equity shares of 10 Each at a premium of 4 per share. The
amount was payable as follows:
On application Rs. 6 (including premium Rs. 2 per share), on allotment Rs. 6 (including premium
Rs. 2 per share), Balance on first and final call. Application for 2,00,000 shares were received. Allotment
was made to the applicants of 1,50,000 shares on pro-rata basis and remaining shares were rejected. Surya
who applied for 300 shares, failed to pay allotment and call money. His shares were forfeited and
afterwards 160 of these shares were re-issued to new shareholder @ Rs. 8 per share fully paid up.
Give journal entries for Forfeiture and Re-Issue only in the books of the company.
b. Suggest a better alternative for the same.​

Answer 1

Explanation:

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