Question

M Ltd. invited applications for issuing 20,000 equity shares of Rs. 10 each at a

premium of Rs. 2 per share. The amount was payable as follows:

On application Rs. 5(including premium)

On allotment Rs. 4

On first and final call Rs. 3

Applications for 25,000 shares were received. Applications for 5,000 shares were rejected

and full allotment was made to the remaining applicants. Aman to whom 400 shares were

allotted failed to pay the allotment money and his shares were forfeited immediately. The

company made the first and final call. Mickey the holder of 600 shares failed to pay call

money and her shares were forfeited. Out of the forfeited shares 800 shares were sold to

Krishna credited as fully paid up for Rs. 9 per share. The reissued shares included all the

forfeited shares of Aman. Pass the necessary journal entries to record the above

transactions.

Pass the necessary Journal entries in the books of M Ltd.​

Answer 1

Answer:

Bank a/c ...Dr 125000

To share application a/c 125000

share application a/c ...Dr125000

To share capital a/c 60000

To security premium reserve 40000

To bank a/c 25000

Share allotment a/c ......Dr 80000

To share capital a/c 80000

Bank a/c ...Dr 78400

cell's in arrear a/c 1600

To share allotment a/c 80000

Share capiatl a/c ...Dr 2800

To forteited share a/c 1200

To share allotment a/c 1600

Share first and final call a/c ..Dr 58800

To share capital a/c 58800

Bank a/c(19000×3) ...Dr 57000

call's in arrear a/c ......Dr 1800

To share first and final call a/c 58800

share capital a/c ...Dr 6000

To forfeited share a/c 4200

To share first and final call 1800

Bank a/c ......Dr 7200

Forfeited share a/c Dr 800

To share capital a/c 8000

Forfeited share a/c Dr3200

To reserve capital a/c 3200