Question

2. X Ltd. issued 5,000 equity shares of Rs. 10 each at Rs. 12 per share payable
as under:
On application Rs. 2, on allotment Rs. 4 (including premium), on 1st call Rs.
3 and on final call Rs. 3.
Mrnot nooy holder of 1,000 shares failed to pay allotment and Ist call money. The
company forfeited his share after Ist call. Give the Journal entries in the books of
XLtd. (Narration is not required).
4​

Answer 1

Answer:

Bank account. dr 10000

To equity share application a/c 10000

Equity share application a/c dr 10000

To equity share capital a/c. 10000

Equity share allotment a/c. dr 20000

To equity share capital a/c. 10000

To security premium reserve 10000

Bank account. dr 16000

To equity share allotment a/c. 16000

(20000-4000)

Equity share ist call a,/c dr 15000

To equity share capital a/c. 15000

Bank account. dr. 12000

To equity share ist call 12000

(15000-3000)

Share capital account. dr. 7000

security premium reserve dr 2000

To share allotment a/c. 4000

To share ist call. 3000

To share forfeiture a/c. 2000