Question

L ltd. forfeited Mr. M's shares who applied for 600 shares and was allotted 400 shares failed to pay allotment money of ₹4 per shares including premium of ₹2 on which he paid application money of ₹2 only please give me full Journal entry ​

Answer 1

Explanation:

share capital A/C (400*4) Dr. 1,600

secrutiy premium Reserve A/C Dr. 800

To calls in arrear A/C 1,200

To share forfeiture A/C 1,200

working Note :-

amount due on allotment 400* 4 = 1,600

less : excess on application 200*2 = 400

Calls in arrear = 1200