Stardum Ltd. issued 50,000 Share of ` 10 each at a premium of ` 2 per share payable ` 2 on Applica-
tion, ` 4 on Allotment (including premium), ` 3 on First call and remaining on Final call. Shikha who
holds 1,000 shares could not pay allotment & call money and Deepa who holds 500 shares could not
pay both calls. Directors forfeited all these shares after making second call and reissud 1,200 shares
for ` 9 fully paid up (includs all shares of Shikha). Pass the necessary Journal entries & show the
amount of Share Forfeited transferred to Capital Reserve Accoun
Answers
Answer:
Bank account. dr 100000
To share application. 100000
share application dr 100000
To. share capital 100000
share allotment. dr. 200000
To share capital. 100000
To security premium reserve 100000
bank account. dr 196000
To share allotment. 196000
share ist call account. dr 150000
To share capital. 150000
bank account. dr 145500
To share ist call. 145500
share final call dr. 150000
To share final call. 150000
bank account. dr 145500
To share final call. 145500
share capital. dr 15000
security premium
reserve. dr. 2000
To share allotment. 4000
To share ist call. 4500
To share final call. 4500
To share forfeiture. 4000
(2000+2000)
bank account. dr 10800
share forfeiture. dt 1200
To share capital. 12000
share forfeiture. dr. 1600
To capital reserve. 1600
Explanation:
total share forfeited 1500
share reissued 1200including 1000 share of Shika
Shika paid only application money 1000×2=2000
Deepa paid application and allotment 500×4=2000
when premium is received then it is ignored and Deepa paid premium so it is ignored
All share of Shika reissued then profit on her share =2000
Deepa share 500 out of which 200 share reissued so we have to calculate profit on 300 share profit on 500 share 2000
then profit o. 200 share 2000/500×200=800
total profit 2000+800=2800
(-) loss on reissue. 1200
capital reserve. =1600