Question

Guru roop ltd issued 2000 shares 10 each at a premium of rs 2 per share payable rs 2 on application,rs 5 on allotment including premium, rs 3 on first call and rs 2 on second and final call. Application were received for 3000 shares and pro rata allotment was made for 2400 shares and remaining application money refunded. R to whom 100 shares were allotted failed to pay the allotment and first call money and his shares were forfeited. M holding 60 shares failed to pay the two calls and his shares were forfeited after the second call was made. Of these forfeited shares,140 shares were sold to k, as fully paid up for rs 9 per share,the whole of R's share being included. Pass the journal entries

Answer 1

bank ac.........dr. 350000
to equity share application a.c 350000
equity share application..dr
to equity share capital a.c 350000
eq.share allotment a.c..dr 6000
to captital a.c 4000
to premium a.c2000