Vardhaman Limited invited application for 1,00,000 equity shares of Rs. 10 each
The amount was payable as follows:
On application Rs.3 per share, on allotment Rs.5 per share and on first in final call Rs.2 per share.
Application were received for 1,50,000 shares and Pro-Rata allotment was made to all the applicants
Navin who was allotted 1,500 shares failed to pay the allotment and call money.His shares were
forfeited out of the forfeited shares 1,250 shares were reissued as fully paid up at Rs.8 Per share
Pass journal entries to record the above transactions.
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Explanation:
only adjustment entry
share APPLICATION a/c dr 4'50'000
to share CAPITAL a/c 3,00,000
to share alloted a/c 1,50,000
bank a/c dr 3,44,750
to share allotment 3,44,750
(98500×5
(5,00,000-1,50,000-5250=3,44,750lakh)
failed to pay 1500 share
Bank a/c dr 1,97,000
to share first &final call 1,97,000
(2lakh -3000)
failed to pay 1500 share on call
share capital a/c dr 15,000
(1500×10)
to share allotment 5250
to 1&final call 3000
to share forfieted 6750
bank account dr 10,000
(1250×8)
share forfieted a/c dr 2500
to share capital 12500
( 1250×10)
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