Iweiled to Capital Reserve.
Forfeiture of Shares Issued at Premium am
0.41. Accountancy Publication Ltd. issued 50,000 equity shares of #10 each at a
premium of 10% payable as under :
On Application *3; On Allotment 4 (Premium 31); On First Call *2; and On
Final Call 2.
The whole of the issue was called for by the company and all the money were duly
received except the allotment and calls money on 500 shares. These shares were,
therefore, forfeited and later on re-issued at 9 per share as fully paid. Pass the
necessary journal entries to record the above transactions.
Answers
Answer:
bank A/C..... Dr. 1,50,000
to share application 1,50,000
share application A/C.... dr. 1,50,000
to share capital A/C... 1,50,000
share allotment A/C.... Dr. 2,00,000
to share capital A/C 1,50,000
to security premium reserve 50,000
bank A/C ........ Dr. 1,98,000
calls in arrears A/C...dr 2000
to share allotment A/C 2,00,000
share first call A/C.....dr 1,00,000
to share capital 1,00,000
bank A/C...... dr. 99,000
calls in arrears A/C..dr 1000
to share first call 1,00,000
share second and final call A/C.....dr 1,00,000
to share capital 1,00,000
bank A/C...... dr. 99,000
calls in arrears A/C..dr 1000
to share second and finalcall 1,00,000
share capital A/C.... dr. (500×10) 5,000
security premium reserve (500×1) 500
to share forfeiture (500×3) 1500
to share allotment (500×4) 2000
to share first call (500×2) 1000
to share final call (500×2) 1000
bank A/C...... Dr. (500 × 9) 4500
share forfeiture A/C...dr(500×1) 500
to share capital (500×10) 5000
share forfeiture A/C....dr (1500 - 500) 1000
to capital reserve A/C (1500-500) 1000