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Question
Arushi Computers Ltd. issued 10,000 equity shares of Rs. 100 each at 10% premium. The net amount payable as follows:
|
On application |
Rs. 20 |
|
On allotment |
Rs. 50 (Rs. 40 + premium Rs. 10) |
|
On first call |
Rs. 30 |
|
On final call |
Rs. 10 |
A shareholder holding 200 shares did not pay final call. His shares were forfeited. Out of these 150 shares were reissued to Ms. Sonia at Rs. 75 per share. Give journal entries in the books of the company.
Solution
Books of Arushi Computers Ltd.
|
Date |
Particulars |
L.F. |
Debit Amount (₹) |
Credit Amount (₹) |
||
|
|
Bank A/c |
Dr. |
|
2,00,000 |
|
|
|
|
|
To Share Application A/c |
|
|
|
2,00,000 |
|
|
(Share Application money received for 10,000 shares @ ₹20 per share) |
|
|
|
||
|
|
Share Application A/c |
Dr. |
|
2,00,000 |
|
|
|
|
|
To Share Capital A/c |
|
|
2,00,000 |
|
|
|
(Share Application money for 10,000 shares transferred to Share Capital Account) |
|
|
|
||
|
|
Share Allotment A/c |
Dr. |
|
5,00,000 |
|
|
|
|
|
To Share Capital A/c |
|
|
4,00,000 |
|
| To Securities Premium Reserve A/c | 1,00,000 | |||||
|
|
(Allotment money due on 10,000 shares @ ₹40 per share excluding premium ₹10) |
|
|
|
||
|
|
Bank A/c |
Dr. |
|
5,00,000 |
|
|
|
|
|
To Share Allotment A/c |
|
|
5,00,000 |
|
|
|
(Share Allotment money received for 10,000 shares @ ₹50 per share) |
|
|
|
||
|
|
Share First Call A/c |
Dr. |
|
3,00,000 |
|
|
|
|
|
To Share Capital A/c |
|
|
3,00,000 |
|
|
|
(Share First Call money due on 10,000 shares @ ₹30 per share) |
|
|
|
||
|
|
Bank A/c |
Dr. |
|
3,00,000 |
|
|
|
|
|
To Share First Call A/c |
|
|
3,00,000 |
|
|
|
(First Call money received for 10,000 shares @ ₹30 per share) |
|
|
|
||
|
|
Share Final Call A/c |
Dr. |
|
1,00,000 |
|
|
|
|
|
To Share Capital A/c |
|
|
1,00,000 |
|
|
|
(Final Call money due on 10,000 shares @ ₹10 per share) |
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
98,000 |
|
|
|
|
|
To Share final call A/c |
|
|
98,000 |
|
|
|
(Final Call money received for 9800 shares @ ₹10 per share and 200 shares failed to pay) |
|
|
|
||
|
|
Share Capital A/c (200×">×100) |
Dr. |
|
20,000 |
|
|
|
|
|
To Share Final Call A/c (200×">×10) |
|
|
2,000 |
|
|
|
|
To Share Forfeiture A/c (200×">×90) |
|
|
18,000 |
|
|
|
(200 shares forfeited for non-payment of Final Call ₹ 10 per share) |
|
|
|
||
|
|
Bank A/c (150×">×75) |
Dr. |
|
11,250 |
|
|
|
|
Share Forfeiture A/c (150×">×25) |
Dr. |
|
3,750 |
|
|
|
|
|
To Share Capital A/c (150×">×100) |
Dr. |
|
|
15,000 |
|
|
(150 forfeited shares reissued at ₹100 per share for ₹75) |
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
9,750 |
|
|
|
|
|
To Capital Reserve A/c |
|
|
|
9,750 |
|
|
(Balance of 150 reissue shares after adjustment transferred to Capital Reserve Account) |
|
|
|
||
Working Notes:
Amount Transferred to Capital Reserve A/c
|
Amount credited to Share Forfeiture Less: Amount debited to Share Forfeiture Balance after adjustment |
₹ 90 per share ₹25 per share
₹ 65 per share
|
Amount transferred to Capital Reserve Account = Balance per share after adjustment × Number of shares reissued
₹ 9,750 = ₹ 65 × ₹ 150 per share
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