X Ltd. has offered 50000 equity shares of `100 each at a premium of `20, payable as follows:
Application `50
Allotment `40 (including premium)
and balance on first and final call.
The bank account of the company has received `35, 00,000 on account of share application money.
X Ltd. decided to allot shares to all the applicants on Pro Rata basis. The balance in calls in arrears account at the
time of allotment and first and final call amounted to `1, 00,000 and `1, 50,000 respectively. These shares were
forfeited and re-issued at `90 per share as fully paid up. Journalize.
Answers
Answer:
Explanation:
Bank A/c Dr. 35,00,000
To Equity Share Application A/c 35,00,000
(Being application money received)
2 Equity Share Application A/c Dr. 35,00,000
To Equity Share capital A/c 25,00,000
To Equity Share Allotment A/c 10,00,000
(Being Shares allotted on proportionate basis and excess
amount received on application adjusted towards allotment)
Equity Share Allotment A/c Dr. 20,00,000
To Equity Share capital A/c 10,00,000
To Securities Premium Reserve A/c 10,00,000
(Being Share allotment money including premium due)
4 Bank A/c Dr. 9,00,000
Calls in Arrears A/c Dr. 1,00,000
To Equity Share Allotment A/c 10,00,000
(Being allotment money received ,except for 5,000 shares)
5 Equity Share First and Final call A/c Dr. 15,00,000
To Equity Share capital A/c 15,00,000
(Being share first and final call money due)
6 Bank A/c Dr. 13,50,000
Calls in Arrears A/c Dr. 1,50,000
To Equity Share First and Final call A/c 15,00,000
(Being first and final call money received ,except for 5,000
shares)
7 Equity Share Capital A/c Dr. 5,00,000
Securities premium Reserve A/c Dr. 1,00,000
To Shares Forfeited A/c 3,50,000
To Calls In Arrears A/c 2,50,000
(Being 5000 shares forfeited for non-payment of allotment
money and first and final call money)
8 Bank A/c Dr. 4,50,000
Shares Forfeited A/c Dr. 50,000
To Share Capital A/c 5,00,000
(Being forfeited shares reissued at ` 90 per share, as fully paid
up)
7
Shares Forfeited A/c Dr.
Dr.
3,00,000
9 To Capital Reserve A/c 3,00,000
(Being share forfeited money transferred to Capital Reserve)
Answer:
Journal is shown below
Explanation:
Easy question
