Kn Ltd. Invited applications for issuing 600000 equity shares of rs. 10 each at premium of rs. 3 per shares. On application and allotment - Rs. 3 per share
First call- Rs. 4 per share
Second and final call- balance(including premium)
Application for 800000 shares were received application for 50000 shares were rejected and the application money was refunded. Shares were alloted to the remaining application.
Category 1: those who had applied for 400000 shares were alloted 300000 shares on pro rata basis.
Category 2: the remaining applicants were alloted the remaining shares on pro rata basis
Excess application money received with applications was adjusted towards sums due on first call. Rakesh to whom 6000 shares were alloted failed to pay the 1st call money. Rakesh belonged to category 1. His shares were forfeited. The forfeited shares were received issued at 13 fully paid up. The second call was made afterwards and was dully received
Answers
Journal Entries
Explanation:
Pls refer to the attached pic
Answer:
Explanation:
Journal Entries
Bank A/c Dr. 2400000
To Share app bond 2400000
Share app bond A/c Dr. 2400000
To Share capital A/c 1800000
To Share first call A/c 4,50,000
To Bank A/c 1,50,000
Share first call Dr. 2400000
To share capital Dr. 2400000
Bank A/c 1932000
To share first call 1932000
Share capital A/c 42000
To Share fortefied A/c 24000
To share first call 18000
Bank A/c 78000
To share capital 60000
To Security premium 18000
Share 2 call A/c 3564000
To Share capital 1782000
To security premium 1782000
Share forteified 24000
To capital Reserve 24000