Vignesh Ltd. issued 40,000 shares of 10 each at a premium of z 2 per share. The shares were payable as follows: On application 2: On allotment z 5 (including premium); On first and final call Rs.5. All the shares were applied for and allotted. All moneys were received with the exception of the first and final call on 1,000 shares which were forfeited. 400 of these were reissued as fully paid at 8 per share.
Give the necessary journal entries.
Answers
Answer:
Below are the journal entries thank u.
Step-by-step explanation:
Bank account dr 80,000
To share application 80,000
Share application dr. 80000
To share capital 80,000
Share allotment dr. 2,00,000
To share capital 120,000
To Security premium reserve 80,000
Bank account dr 2,00,000
To share allotment 2,00,000
Share first and final call dr. 2,00,000
To share capital 2,00,000
Bank account dr 1,95,000
Calls in arrear account dr. 5,000
To share first and final call 2,00,000
Share capital dr. 10,000
To calls in arrear 5,000
To share forfeiture 5,000
Bank account dr 8000
Share forfeiture dr. 2000
To share capital 10,000
Share forfeiture dr. 3,000
To capital reserve 3,000