(Forfeiture Entries) A company had allotted
shares is 100 and the premium is 20% Application money is 30 including 50% premium
ard allotment is 50 (including balance of premium). The rest of face value is called on first
and final call. Maninder had applied for 2,200 shares. His excess application money is
retained for allotment. He did pay any amount did not pay any amount after application.
Pass forfeiture entry.
Ans. Share forfeited 66,000)
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Answer:
Share Capital A/C.............Dr. (2200*100) 220000
Security Premium A/c......Dr. (2200*10) 22000
To, Share Forfeiture A/c (2200*20) 44000
To, Share Allotment A/c (2200*50) 110000
To, Share 1st & 2nd Call A/c (2200*40) 88000
Explanation:
May be 66000 is wrong because we took only called up value in share forfeit,
we ignore Security premium because it was received on application.
If my answer is wrong please let me know.
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