Question

Rakesh Ltd. issued 2,000 Equity Shares of 100 each at a premium oH 20 per share payable as follows:

On Application	₹ 20
On Allotment	₹ 50 (Including Premium)
On First Call	₹ 20
On Final Call	₹ 30

Applications were received for 3,000 shares, 2000 shares allotted to the applicants for 2400 shares. The remaining applications for 600 shares being refused and application money there on was refunded. Excess money received on application was adjusted against allotment.

All amounts were duly received except Mr. Mondor to whom 80 shares were alloted. Mandar fails to pay First and Final Call. His shares were forfeited and were reissued to Mr. Ketan as fully paid at ₹ 80 per share.

Journalise the transactions in the books of the company.

Answer 1

Journal Entries In the Books of Apoorva
Date	Particular	L.F.	Amount Dr. (₹)	Amount Cr. (₹)
1.	BankA/c   ...Dr.		60,000	-
	To Equity Share Application A/c		-	60,000
	(Being equity share application money on 3,000 equity shares @ ₹ 20 per share received)
2.	Equity Share Application A/c   ...Dr.		40,000	-
	To Equity Share Capital A/c		-	40,000
	(Being application money on 2.000 shares @ ₹ 20 per share transferred to capital A/c))
3.	Equity Share Application A/c		20,000	-
	To Equity Share Allotment A/c		-	8,000
	To Bank A/c		-	12,000
	(Being excess application money on 400 shares adjusted against allotment and on 600 shares refunded)
4.	Equity Share Allotment A/c   ...Dr.		1,00,000	-
	To Equity Share Capital A/c		-	60,000
	To Share Premium A/c		-	40,000
	(Being Allotment money on 2,000 equity shares @ ₹ 50 per share including premium due)
5.	Bank A/c   ...Dr.		92,000	-
	To Equity Share Allotment A/c		-	92,000
	(Being equity share allotment money received)
6.	Equity Share First Call A/c     ...Dr.		40,000	-
	To Equity Share Capital A/c		-	40,000
	(Being share first call money on 2,000 shares @ ₹ 20 per share due)
7.	Bank A/c     ...Dr.		38,400	-
	To Equity Share First Call A/c		-	38,400
	(Being equity share first call money on 1.920 shares @ ₹ 20 per share received)
8.	Equity Share Final Call A/c      ...Dr.		60,000	-
	To Equity Share Capital A/c		-	60,000
	(Being equity share final call money on 2,000 shares @ ₹ 30 per share due)
9.	Bank A/c     ...Dr.		57,600	-
	To Equity Share Final Call A/c		-	57,600
	(Being share first call money on 1,920 shares @ ₹ 30 per share received)
10.	Equity Share Capital A/c    ...Dr.		8,000	-
	To Equity Share First Call A/c		-	1,600
	To Equity Share Final Call A/c		-	2,400
	To Share Forfeiture A/c		-	4,000
	(Being forfeiture of 80 shares due to non-payment of first & final call)
11.	Bank A/c     ...Dr.		6,400	-
	Share Forfeiture A/c		1,600	-
	To Equity Shares Capital A/c		-	8,000
	(Being reissue of 80 forfeited shares @ ₹ 80 per share)
12.	Share Forfeiture A/c    ...Dr.		2,400	-
	To Capital Reserve A/c		-	2,400
	(Being balance on share forfeiture account transfer to capital reserve account)