A Ltd issued 10,000 equity shares of Rs.10
each payable as under.
Rs.2 on application, Rs.5 on allotment and
Rs.3 on first and final call.
The Public applied for 8,000 shares which
are allotted. All the money due on shares
was received except the first and final call on
100 shares. These shares were forfeited and
reissued at Rs.8 per share. Pass Journal
entry in the books of A Ltd.
Answers
Answer:
Raghav Ltd. issued a prospectus inviting applications of 50000 equity shares of ₹ 10 each at a premium of ₹ 4 per share payable as follows
Application ₹5 (including ₹2 premium)
Allotment ₹5 ( including ₹2 premium)
First and final call ₹4
Applications were received for 90000 shares and prorata allotment was made to be appliance of 75000. The remaining applications were rejected. It was decided to utilise the excess application money towards some due on allotment.
Ritu who applied for 1800 shares failed to pay the allotment money due and her shares were Forfieted immediately after allotment.
Manju who was alloted 1200 shares failed to pay the call money and subsequently her shares were Forfieted. The directors decided to reissue 50% of Forfieted shares held by Ritu for ₹12 per share and 50% of Forfieted shares held by Manju for ₹ 9 per share.
Answer:A Ltd. issued 10,000 equity shares of Rs. 10 each payable as under:
Rs. 2 on application
Rs. 5 on allotment
Rs. 3 on first and final call.
The public applied for 8,000 shares which are allotted. All the money due on shares was received except the first and final call on 100 shares. These shares were forfeited and reissued at Rs. 8 per share.
Show the journal entries in the books of the company.
Explanation: