EF Ltd. Invited applications for issuing 80,000 equity shares of 50 each at a premium of 20%. The
amount was payable as follows:
On Application
: 20 per share (including premium * 5)
On Allotment
: 15 per share (including premium 5)
On First Call
: 15 per share
On Second and Final Call : Balance amount
Applications for 1,20,000 shares were received. Applications for 20,000 shares were rejected and pro-
rata allotment was made to the remaining applicants.
Seema, holding 4,000 shares failed to pay the allotment money. Afterwards the first call was made.
Seema paid allotment money along with the first call. Sahaj, who had applied for 2,500 shares failed to
pay the first call money. Sahaj's shares were forfeited and subsequently reissued to Geeta for 60 per
share, 50 per share paid up. Final call was not made.
Pass necessary journal entries for the above transactions in the books of EF Ltd. by opening calls-in-
arrears account.
Answers
HEYA MATE YOUR ANSWER IS
pro-
rata allotment was made to the remaining applicants.
Seema, holding 4,000 shares failed to pay the allotment money. Afterwards the first call was made.
Seema paid allotment money along with the first call. Sahaj, who had applied for 2,500 shares failed to
pay
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Answer:
Explanation:
Particulars debit credit
Bank A/c 2400000
To share application account 2400000
Share applicant A/c 2400000
To share capital 1200000
To securities premium A/c 400000
To share allotment a/c 400000
To Bank A/c 400000
Share allotment A/c 1200000
To share capital 800000
To Securities a/c 400000
Bank A/c 760000
calls in arrears 40000
To share allotment A/c 800000
Share First call 1200000
To Share capital 1200000
Bank A/c 1170000
Calls Arrears 30000
To Share first call 1200000
Bank A/c 40000
To Calls in Arrears 40000
Share capital A/c 80000
To share forfeiture 50000
To Calls in arrears 30000
Bank A/c 120000
To Share capital 100000
To securities premium 20000
Share forfeiture A/c 50000
To Capital Reserve 50000