Royal Ltd. invited applications for issuing 2,00,000 equity shares of R 10 each at a premium of 25% payable with application. Applications 4,50,000 shares were received rejected for ved. Applications for 1,00,000 shares were and money refunded. Pro-rata allotment was made to the s: remaining applicants. The amount per share was payable as follow On Application On Allotment Balance on 1st and Final Call. 4 per share including premium 3-50 per share Excess application money received with applications was adjusted with sums due on allotment. Application money in excess of sums due on allotment, if any, was refunded. Raghu, who had applied for 7,000 shares failed to pay allotment money. His shares were forfeited immediately after allotment. Afterwards the first and final call was made. Nandan, who had applied for 10,500 shares, failed to pay the first and final call. His shares were also forfeited. All the forfeited shares were reissued at 11-50 fully paid up, to Meeta. Pass necessary journal entries for the above transactions in the books of Royal Ltd.
Answers
Royal Ltd. invited applications for issuing 2,00,000 equity shares of R 10 each at a premium of 25% payable with application. Applications 4,50,000 shares were received rejected for ved. Applications for 1,00,000 shares were and money refunded. Pro-rata
Answer:
Explanation:
Journal entries
Particulars Amount Amount
Bank A/c 1800000
To equity shares 1800000
Equity share application 1800000
To Equity share capital 300,000
To securities premium reserve 500000
To Equity share allotment 600000
To Bank A/c 400000
Equity share allotment 700000
To equity share capital 700000
Bank A/c 98000
call in arrear 2000
To Equity share allotment 100000
Equity share capital 60000
To share fortified 30000
To call in arrear 30000
Bank A/c 115000
To Equity share 100,000
To security premium 15000
Share fortified 48000
To Capital reserve 48000