Question

59. New Company Ltd. has a nominal capital of 2,50,000 in shares of 10. Of these, 4,000 shares were issued
as fully paid in payment of building purchased, 8,000 shares were subscribed by the public and during the
first year 5 per share were called-up, payable 2 on application, 1 on allotment, 1 on first call and 1
on second call. The amounts received in respect of these shares were:
On 6,000 shares
Full amount called,
On 1,250 shares
4 per share,
On 500 shares
3 per share,
On 250 shares
2 per share.
The Directors forfeited the 750 shares on which less than 4 had been paid.The shares were subsequently
reissued at 3 per share.
Pass Journal entries recording the above transactions and prepare the company's Balance Sheet.
(Ans.: Capital Reserve 500; Balance Sheet Total-*79,250.) explain this in detail
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Answer 1

Answer:

Explanation:

Amount received in application = Rs 8000 x 2 = Rs 16000

Amount received in  allotment = Rs( 8000 x 1) - 250 =Rs 7750

Amount received in 1st call = Rs( 8000 x 1) -750 = Rs 7250

Amount received in 2nd call = Rs(8000 x 1) - 2000 = Rs 6000