Accountancy, asked by ujjawalsharma8270, 10 months ago

R. K. Ltd. invited applications for issuing 70,000 Equity Shares of? 10 each ata premium of share. The amount was payable as follows: 35 per On application 15 (Including 12 Premium) On Allotment 10 (including 8 Premium) On first and final call– Balance Applications for 65,000 shares were received and allotment was made to all the applicants. A shareholder, Ram, who was allotted 2,000 shares, failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards, the first and final call was made. Sohan, who had 3,000 shares, failed to pay the first and final call. His shares were also forfeited. Out of the share forfeited, 4,000 shares were reissued at 25 per share fully paid up. The reissued shares included all the shares of Ram.

Answers

Answered by madeducators2

Journal Entries for the given transactions

Explanation:

In the Books of RK Ltd.

Journal:

Bank A/c Dr. Rs.975000

To Share Application A/c Rs.975000

(Being share application received for 65000 shares)

Share Application A/c Dr. Rs.975000

To Equity ShareCapital A/c Rs.195000

To SPR A/c Rs.780000

(Being share application transferred to Share capital and SPR)

Share Allottment A/c Dr. Rs.650000

To Equity ShareCapital A/c Rs.130000

To SPR A/c Rs.520000

(Being share allottment made due)

Bank A/c Dr. Rs.630000

Calls in Arrears A/c Dr. Rs.20000

To Share Allottment A/c Rs.650000

(Being allottment received on all shares except on 2000 shares)

Equity ShareCapital A/c Dr. Rs.10000

SPR A/c Dr. Rs.160000

To Share Forfeiture A/c Rs.6000

To Calls in Arrear A/c Rs.20000

(Being 20,000 shares forfeited)

Share First and Final Call A/c Dr. Rs.1260000

To Equity Share Capital A/c Rs.315000

To SPR A/c Rs.945000

(Being share first and final call due on 3000 shares)

Bank A/c Dr. Rs.1200000

Calls in Arrear A/c Dr. Rs.60000

To Share First and Final Call A/c Rs.1260000

(Being first and final calls received on all shares except 3000 shares)

Equity ShareCapital A/c Dr. Rs.30000

SPR A/c Dr. Rs.45000

To Share Forfeiture A/c Rs.15000

To Calls in Arrear A/c Rs.60000

(Being 3000 shares forfeited)

Bank A/c Dr. Rs.200000

To Share Capital A/c Rs.40000

To SPR A/c Rs.160000

(Being 4000 shares forfeited)

Share Forfeiture A/c Dr. Rs.16000

To Capital Reserve A/c Rs.16000

(Being 4000 shares forfeited reissued transferred to Capital Reserve A/c)

Answered by llAngelicQueenll

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