Question

Firdos Ltd. invited applications for issuing 70,000 shares of Rs. 10 each at par. The amount was payable as follows:

On Application Rs. 4 per share

On Allotment Rs. 3 per share

On First and Final Call –Balance

Application for 80,000 shares were received. Applications for 5,000 shares were rejected and the shares were allotted on pro rata basis to the remaining applicants. Excess money received with applications was utilized towards sums due on allotment. Jony, who had applied for 1,500 shares, failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards the First and Final call was made. First and Final call was not received on 700 shares held by Rony. His shares were also forfeited. 1,500 forfeited shares were reissued at Rs.13 per share fully paid up. The reissued shares included all the shares of Jony

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Answer 1

Remaining entries
Sh. Capital Dr. 7000
To sh. First and final call. 2100
To sh forefiture. 4900

Bank a/c Dr 19500
To sh capital. 15000
To SPR. 4500

Sh forefiture (6000-0). Dr. 6000
To cap res. 6000