Question

. New line Ltd. issued 20.000 shares of Rs. 10 each at a premium of Rs. 2 payable asfollows:
On application Rs. 2
On allotment Rs. 5 (including premium)
On first call Rs. 2
On final call Rs. 3
Applications for 15,000 shares were received and all these shares were allotted. The first
call was made and the amount due thereon was received except the amount on 500
shares. Hence, these shares were forfeited and reissued at Rs.7 each, as fully paid up.
Pass journal entries in the books of the company

I want full answer for this question. ​
please help me.

Answer 1

Answer:

Actually some one else asked this question and some one had answered it but really i dont know the answer i just thought it would help u

Explanation:

Answer 2

Answer:

1.   Bank A/c                      Dr.                            30000

               To Equity Shares application A/c                    30000

(Being application money received for 15000 shares)

2. Equity shares application A/c   Dr.              30000

                To Equity share capital A/C                            30000

(Being application money transferred to equity share capital account)

3.  Bank A/c                                       Dr.           75000

             To Equity shares allotment A/c                          45000

             To Securities Premium A/C                                 30000

(Being allotment money and premium on 15000 shares received )

4. Equity share allotment A/C        Dr.            45000

   Securities Premium A/C              Dr.            30000

                 To Equity share capital A/C                            75000

(Being allotment money and premium transferred to equity share capital account)

5. Equity Shares First Call A/c              Dr.          30000

                To Equity share capital a/c                              30000

( Being first call money due on 15000 shares)

6. Bank A/C                                             Dr.         29000

   Calls-in-Arrears A/c                            Dr.             1000

                To Equity shares First Call A/c                          30000

 (being first call money received except on 500 shares)  

                                       

7. Equity share capital A/c                 Dr.                1000

              To Forfeited shares A/c                                       1000

(Being forfeiture of 500 shares for non-payment of first call money)

8.  Equity share Second & Final Call A/C  Dr.      43500

       To Equity Share Capital A/c                                        43500

(being the second and final call due on 14500  shares)

9.  Bank A/C                                           Dr.               3500

                To Forfeited Shares A/c                                        1000

                To Equity share capital A/c                                  2500

(being 500 shares reissued at Rs. 7 each)

10. Forfeited shares A/c                           Dr.             2000

                 To Equity share capital  A/c                                  1000

                  To Capital Reserve A/c                                         1000

(being 500 shares reissued and gained Rs.1000 on reissued)

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