A Limited issued 3000 equity shares of Rs. 10 each at a
discount of 10%: on these shares payments are to be made
on follows: Rs. 2 on a application Rs. 3 on allotment and
Rs. 5 on first and final call, Mohan, Who is a holder of 800
Shares has not paid the first and final call, hence his shares
have been forfeited and have been re-issued at a discount
of 5% pass the necessary journal entries in the books of A
Answers
Answer:
After Passing all the journal entries, the capital reserve shows a balance of Rs 2,800.
Explanation:
In the books of A limited
Journal
Bank A/c Dr 6,000
To Equity Share Application Account 6,000
(Application money received on 3,000
Shares @ Rs 2)
Equity Share Application A/c Dr 6,000
To Equity Share Capital A/c 6,000
(Transfer of Application Money to
Share Capital)
Equity Share Allotment A/c(3,000X2) Dr 6,000
Discount On Issue of Shares A/c Dr 3,000
(3,000X1)
To Equity Share Capital A/c 9,000
(Allotment money due and discount recorded)
Bank A/c Dr 6,000
To Equity Share Allotment A/c 6,000
(Allotment money Received)
Equity Share final Call A/c Dr 15,000
To Equity Share Capital A/c 15,000
(Amount of first and final call due)
Bank A/C Dr 11,000
To Equity Share final Call A/c 11,000
(Call money Received 2,200 Rs 5)
Equity Share Capital A/c (800X10) Dr 8,000
To Discount On Issue of Shares A/c (800X1) 800
To Share Forfeiture A/c(800X4) 3,200
To Equity Share final Call A/c 4,000
(Forfeiture Of 800 Equity Share)
Bank A/c (800X9.5) Dr 7,600
Share Forfeiture A/c Dr 400
To Equity Share Capital A/c 8,000
(Reissue of 800 Shares @ Rs 9.50 shares)
Share Forfeiture A/c Dr 2,800
To Capital Reserve A/c 2,800
(Transfer of Shares Forfeited A/c To Capital Reserve)