Question

A Ltd. company issued 3000 shares of G 10 each at a discount of 10%. On these shares payment are to
be made as follow : G 2 on application, G 2 on allotment and G 5 on first and final call Bankey. Who
is holder of 800 shares has not paid the first and final call, hence his shares have been forfeited and have
been reissued at a discount of 5%. Pass necessary journal entries in the book of the company

Answer 1

A Ltd. company issued 3000 shares of G 10 each at a discount of 10%. On these shares payment are to

be made as follow : G 2 on application, G 2 on allotment and G 5 on first and final call Bankey. Who

is holder of 800 shares has not paid the first and final call, hence his shares have been forfeited and have

been reissued at a discount of 5%. Pass necessary journal entries in the book of the company