Question

Ankur Company Limited invited applications for 65,000 equity shares of (100 at par payable as follows:

On application ₹30; On allotment ₹40; On first and final call ₹30
The public applied for 50,000 shares and all these were alloted. All money due were collected with an exception of first and final call on 5,000 shares, these were forfeited.

Pass Journal entries in the books of Ankur Company Limited.

Answer 1

Journal Entries in the books of Ankur Company Ltd.
Date	Particulars	L.F. No.	Debit (₹)	Credit (₹)
(1)	Bank A/c     ...Dr.		15,00,000
	To Equity Share Application A/c			15,00,000
	(Being application money on 50,000 equity shares @ ₹30 per share received.)
(2)	Equity Share Application A/c     ...Dr.		15,00,000
	To Equity Share Capital A/c			15,00,000
	(Being Equity share application money on 50,000 shares transferred to Equity Share Capital A/c.)
(3)	Equity Share Allotment A/c     ...Dr.		20,00,000
	To Equity Share Capital A/c			20,00,000
	(Being on Equity share allotment money ₹40 per share due on 50,000 shares.)
(4)	Bank A/c     ...Dr.		20,00,000
	To Equity Share Allotment A/c			20,00,000
	(Being Equity share allotment money received on 50,000 shares.)
(5)	Equity Share First and Final Call A/c     ...Dr.		15,00,000
	To Equity Share Capital A/c			15,00,000
	(Being Equity share first and final call money @ ₹30 per share due on 50,000 shares.)
(6)	Bank A/c    ...Dr.		13,50,000
	To Equity Share First and Final Call A/c			13,50,000
	(Being Equity share first and final call money received on 45,000 shares @ ₹30 per share.)
(7)	Equity Share Capital A/c     ...Dr.		5,00,000
	To Equity Share First and Final Call A/c			1,50,000
	To Share Forfeiture A/c			3,50,000
	(Being 5000 shares forfeited by the company due to non-payment of first and final call.)
	Total		1,03,50,000	1,03,50,000