43. X Ltd. invited applications for 2,00,000 equity shares of 10 each at a premium of 2 per
share payable as to 2 on application, 5 on allotment including premium, * 2 first call and
73 on final call.
Applications were received for 3,00,000 shares. Applications for 60,000 share were rejected
and pro-rata allotment was made to the remaining applicants. Ram, who applied for 9,600
shares, failed to pay allotment and two calls and Shyam, the holder of 12,000 shares, failed
to pay two calls. These shares were forfeited. Subsequently, all these shares were reissued
at 8 per share as fully paid up. Pass necessary journal entries in the books of X Ltd.
Answers
Answer:
In the books of X Ltd
Journal
Particulars
Dr.
Cr.
Bank A/c Dr.
1,44,800
To Share application A/c
1,44,800
(Being Application money received)
Share application A/c Dr.
1,44,800
To Share capital A/c
1,00,000
To Share allotment A/c
20,800
To Bank A/c
21,000
To Calls in advance A/c
3,000
(Being application money transferred)
OR
Share application A/c Dr.
1,44,800
To Share capital A/c
1,00,000
To Bank A/c
21,000
To Calls in advance A/c
23,800
(Being application money transferred)
Share allotment A/c Dr.
1,00,000
To Share capital A/c
1,00,000
(Being allotment money due)
Bank A/c Dr.
71,200
Calls in advance A/c Dr.
20,800
Calls in arrears A/c Dr.
8,000
To Share allotment A/c
1,00,000
(Being allotment money received)
Share capital A/c Dr.
20,000
To Share forfeiture A/c
12,000
To Calls in arrears A/c
8,000
(Being share forfeited)
Share Ist call A/c Dr.
1,35,000
To Share capital A/c
1,35,000
(Being amount due on first call)
Bank A/c Dr.
1,33,500
Calls in advance A/c Dr.
1,500
To Share Ist call A/c
1,35,000
(Being amount received on first call)
Share final call A/c Dr.
1,35,000
To Share capital A/c
1,35,000
(Being amount due on final call)
Bank A/c Dr.
1,33,500
Calls in advance A/c Dr.
1,500
To Share final call A/c
1,35,000
(Being amount received on final call)
Bank A/c Dr.
20,000
To Share capital A/c
20,000
(Being share reissue)
Share forfeiture A/c Dr.
12,000
To Capital reserve A/c
12,000
(Being amount transferred capital reserve)