Raja Ltd issued 20,000 shares of 7 20 each
payable as
On application
4
On allotment
4
On first call
6
On second and final call 6
All the amounts were received except the
following
X 500 shares, has not paid allotment, first call
and final call.
Y 300 shares, has not paid first call and final
call.
Z 200 shares, has not paid final call.
All the above shares were forfeited and were
re-issued in the following manner
Shares of X @ 18 per share, shares of Y @ 16
per share and shares of Z @ 15 per share.
Pass journal entries regarding forfeiture and
re-issue of shares.
Answers
Answer:
1.bank a/c dr. 80,000
to share application a/c 80,000
2. Share application a/c dr. 80,000
To share capital a/c 80,000
3.Share allotment a/c dr. 80,000
To share capital a/c 80,000
4.Bank a/c dr. 78,000
To share allotment a/c (80,000-500*4) 78,000
5. Share I call a/c dr. 1,20,000
To share capital a/c 1,20,000
6.Bank a/c dr. 1,15,200
To share I call a/c (1,20,000-800*6) 1,15,200
7.Share II & final call a/c dr. 1,20,000
To share capital a/c 1,20,000
8.Bank a/c dr. 1,14,000
To share II & final call a/c(1,20,000-1,000*6) 1,14,000
9.share capital a/c dr. (1,000*20 ) 20,000
To share allotment a/c (500*4) 2,000
To share I call a/c(500*6+300*6) 4,800
To share II & final call a/c(500*6+300*6+200*6) 6,000
To share forfeiture a/c(500*4+300*4+300*4+200*4 7,200
+200*4+200*6)
10. Bank a/c dr.(500*18) 9,000
share forfeiture a/c dr.(500*2) 1,000
To share capital a/c 10,000
11.share forfeiture a/c dr. 1,000
To capital reserve a/c (500*4-1,000) 1,000
12. bank a/c dr.(300*16) 4,800
Share forfeiture a/c dr.(300*4) 1,200
To share capital a/c(300*20) 6,000
13.Share forfeiture a/c dr. 1,200
To capital reserve a/c(300*4+300*4-1,200) 1,200
14.BAnk a/c dr. (200*15) 3,000
Share forfeiture a/c dr. (200*5) 1,000
To Share capital a/c (200*20) 4,000
15.Share forfeiture a/c dr. 1,800
to capital reserve a/c(200*4+200*4+200*6-1,000) 1,800