Lucky Ltd. invited applications for 50,000 equity shares of Rs. 10 each, payable as Rs. 2 on application, Rs. 3 on allotment and the balance on first and final call. Applications were received for 1,50,000 shares and the share were allotted on a pro-rata basis, The excess application money was to be adjusted against allotment only. Maya, a holder who had applied for 1,500 shares, failed to pay the call money and her share were forfeited and were reissued @ 8 per share as fully paid."
Answers
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Answer:
Explanation:
In the books of Journal entry
particulars amount amount
Bank A/c Dr. 300000
To, share application A/C 300000
[150000 x 2]
[being application money
received @ Rs. 2 per each]
share application A/C Dr. 300000
To, share capital A/C 100000
To, share allotment A/C 150000
to, bank A/C 50000
[application money adjusted]
share allotment Dr. 150000
To, share capital A/C 150000
[allotment money received]
share first & final call A/C Dr. 250000
To, share capital A/C 250000
[due on first & final call]
bank A/C Dr. 242000
call in arrears A/C Dr. 7500
To, share first & final
call A/C 250000
[first & final call money received]
share capital A/C Dr. 150000
To, share forfeiture A/C 7500
TO, call in arrears A/C 7500
[forfeiture of share]
bank A/C Dr. 12000
share forfeited A/C Dr. 3000
To, share capital A/c 15000
[1500 share reissued]
share forfeited A/C 4500
To, capital reserved A/C 4500
[being amount transferred from share forfeited to capital reserve]