Beautiful Co. Ltd issued 30,000 equity shares of 10 each payable as 3 per share on Application, 25 per share
(including 2 as premium) on Allotment and 4 per share on Call. All the shares were subscribed. Money due
on all shares was fully received except from Ram, holding 500 shares, who failed to pay the Allotment and call
money and Shyam, holding 1,000 shares, who failed to pay the Call Money. All those 1,500 shares were forfeited.
of the shares forfeited, 1,250 shares (including whole of Ram's shares) were subsequently re-issued to Jadu as
fully paid up at a discount of 2 per share.
Pass the necessary entries in the Journal of the company to record the forfeiture and re-issue of the share. Also
prepare the Balance Sheet of the company.
Answers
Answer:
Explanation: In the books of beautiful co. ltd
Journal
Equity share capital A/c ( 1500 * 10 ) Dr. 15000
Security Premium A/c (500 * 2 ) Dr. 1000
To Equity share Allotment A/c 2500
To Equity share call A/c 6000
To Forfeited shares A/c 7500
( Being forfeited of 1500 equity shares for non payment of allotment and call money on 500 shares)
Bank A/c Dr. 10,000
Forfeited share A/c Dr. 2500
To equity shares capital A/c 12500
Forfeited shares A/c Dr. 3500
To capital reserve A/c 3500
Balance - sheet
EQUITY AND LIABILITIES
Shareholder's fund
Share capital 299000
Reserve and surplus 62500
Total 3,61,500
ASSETS
Current Assets
Cash and cash equivalent (bank ) 361500
Total 3,61,500
Explanation:
the amount of capital reserve is 3750 is right or wrong plz any one suggest
