R.P. Ltd. forfeited 1,500 shares of Rahim of 10 each issued at a premium of 3 per share for non-payment of allotment and first call money. Rahim had applied for 3,000 shares. On these shares,amount was payable as follows:
On application 3 per share
On allotment
(including premium) 5 per share
On first call 3 per share
On final call Balance
Final call has not been called up. 1,000 of the forfeited shares were
reissued for 8,500 as fully paid-up. Record the necessary journal entries for the above transactions in
the books of R.P. Ltd.
Answers
1. Bank a/c 9,000
To Share application a/c 9,000
2. Share application a/c 9,000
To Share capital a/c 9,000
3. Share allotment a/c 15,000
To Share capital a/c 6,000
To Security premium a/c 9,000
4. Calls-in-arrears a/c 15,000
To Share allotment a/c 15,000
5. Share 1st call a/c 9,000
To share capital a/c 9,000
6. Calls-in-arrears a/c 9,000
To Share 1st call a/c 9,000
7. Share capital a/c 24,000
Security premium a/c 9,000
To calls-in-arrears 24,000
To Share forfieture a/c 9,000
8. Bank a/c 8,500
Share forfieture a/c 1,500
To share capital a/c 10,000
9. Share forfieture a/c 3,500
To Capital Reserve 3,500