Question

Suraj Co.Ltd.,issued 20,000equity shares of the face value ofrs10 eachpayable as follows on application rs 2 on allotment rs3 onfirst and final call rs5 all the shares aresubscribeb for and dulyallotted and all the calls are made . All money due is received except the first and final call on 300.These shares are subsequently forfeited by the directors.give entries necessary to record these transactions in the companies journal​

Answer 1

Let's do journal entry :

When calls-in-arrears A/c is maintained

Share capital A/c Dr.(300×10). 3000

To forfeited share A/c(300×5). 1500

To calls-in-arrears A/c(300×5). 1500

(Being shares forfeited)

When calls-in-arrears A/c is not maintained

Share capital A/c Dr.(300×10). 3000

To forfeited share A/c(300×5). 1500

To first and final A/c(300×15). 1500

(Being shares forfeited)