Question

KLN Ltd.’ invited applications for issuing 1,00,000 shares of < 10 each at a premium of < 2 per share. The amount was payable as follows : On Application – < 3 per share (including premium < 1) On Allotment – < 4 per share (including premium < 1) On First call – < 3 per share On Second and Final Call – Balance amount Application for 1,90,000 shares were received. Allotment was made to the applicants as follows : Category No. of Shares Applied No. of Shares Allotted I 50,000 40,000 II 1,00,000 60,000 Remaining applications were rejected. Rajat, a shareholder belonging to Category I who had applied for 2,500 shares, failed to pay the amount due on allotment and first call. His shares were immediately forfeited. Reema, a shareholder belonging to Category II who was holding 3,000 shares failed to pay the first call and second call money. Her shares were also forfeited. Afterwards 4,000 shares were reissued @ < 8 per share fully paid up. These included all the forfeited shares of Reema. Pass necessary journal entries for the above transactions in the books of ‘KLN Ltd.’
this is a question of cbse board and in marking scheme the forfeited amt of rajat is 5500 but when i had calculate the diffence arises of 500 i.e my ans. amt is 5000

Answer 1

Answer:

Capital reserve = 9750

Explanation:

Share re-issued = 4000

It includes all reema's share i.e. 3000 shares

Forfeited amount from reema's share = ₹15,000..............(i)

Now, the extra 1000 shares re-issued are from rajat's forfeited shares (4000-3000=1000)

So, forfeited amount from rajat's share = ₹5,500 × 1000/2000

= ₹750.................(ii)

From (i) & (ii) we get

share forfeiture amount transfer to capital reserve will be

= (₹15,000+₹750) - ₹8000

= ₹9750.

Answer 2

Answer:

solution

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