Question

BTWIN Ltd. issued 10,000 shares @ 100 per share payable as 20 on application, 50 on allotment and
basis. Application and allotment calls were made and money was duly received except for below:
30 on first call. Applications were received for 20,000 Shares. Directors decided to allot shares on pro-rata
reissued at 60 per share, paid up 70 per share.
Alok, applicant of 500 shares, paid entire first call amount on allotment.
Pass journal entries in the books of BTWIN Ltd.

Answer 1

Answer:

Calculation of Capital Reserve Total Share Forfeiture ( at the time of cancellation of shares ) = Z 950 Less : Total Share Forfeiture ( at the time of re - issue of shares ) = * _ ( 200 ) Capital Reserve = 750