Question

ABC LTD issued 20000 shares of Rs 10 each payable as Rs 2 per share on application,Rs 5 ( including premium of Rs 2 per share) on allotment, Rs 3 per share on first call and the balance on final call.

All the money was received except the first call money on 400 shares; which was received later on with final call.

Make necessary journal entries.​

Answer 1

Answer:

Solution

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W. No. 1 : First Call Money Received

First call money due = 80,000

(-) Calls in arrear (300×4) = 1,200

First Call Money Received

78,800

W. No. 2 : First Call Money Received

Final call money due = 20,000

(-) Calls in arrears (300×1) = 300

Final Call Money Received

19,700

W. No. 3 : Amount Transferred to Capital reserve a/c

Gross Balance of Share Forefeiture

a/c on 300 shares = 1,500

(-) Discount on Re-issue

of 300 forfeited shares =

600

Amount Transferred to

Capital Reserve

900