Question

Wellness Ltd. Having authorised capital of Rs 20,00,000 divided into equity shares of Rs 10 each. The company invited applications for 40,000 shares; payable as Rs 4 per share on application and allotment; Rs 3 on first call; and balance on final call. Applications for 39,000 shares were received and allotment was made to all applicants. The company called money till first call. The payment was received as follows:35,000 shares paid full amount: 4,000 shares did not pay first call money. These shares were forfeited. The company also issued 10,000 shares to ‘y’Ltd. for purchasing a machine worth Rs 1,20,000. Pass the journal entries to record the transactions in the books of company.​

Answer 1

Answer:

All amounts have been received in lump sum. ... (Share application money received for 8,000 Equity Shares of Rs 10 each) ... (Share first call due on 10,000 shares at Rs 20 per share).