Question

Janta ltd issued applications for 5,00,000 equity shares of ₹10 each, at a premium of ₹4 per share. The amount was payable as follows:
On application ₹6(including ₹2 premium ), on allotment ₹6(including 2 premium) and balance on final call.

Applications for 7,50,000 shares were received. Allotment was made to all the applicants on pro rata basis. Mohan to whom 1000 shares were allotted didn’t pay allotment and call money. Vikram to whom 500 shares were allotted didn’t pay the call money. These shares were forfeited and afterwards reissued @₹8 per share fully paid up. Pass necessary journal entries.

Answer 1

Answer:

Janta ltd issued applications for 5,00,000 equity shares of ₹10 each, at a premium of ₹4 per share.

Explanation:

shares are typically issued at par or their nominal value, but every so often the stocks are issued at an quantity that is higher than the par fee or the nominal price, such example of issuing stocks is referred to as shares issued at top rate.

The top rate amount or the quantity in excess of par value that is acquired by using issuing of shares is credited to a separate account and that account is referred to as because the securities premium account. it's far shown under the pinnacle Reserves and Surplus on the liabilities aspect of a company’s balance sheet. n case the premium quantity is obtained along side the software money, it's going to now not be without delay credited to the securities top rate account, as there is a threat that the software can get rejected. the subsequent entries may be visible

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