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Question
Dogra Ltd. had an authorised capital of ₹ 1,00,00,000 divided into Equity Shares of ₹ 100 each. The company offered 84,000 shares to the public at premium.
The amount was payable as follow:
| On Application | --- | ₹ 30 per share, |
| On Allotment | --- | ₹ 40 per share(including premium), |
| On First and Final call | --- | ₹ 50 per share. |
Applications were received for 80,000 shares.
All sums were duly received except the following:
Lakhan, a holder of 200 shares did not pay allotment and call money.
Paras, a holder of 400 shares did not pay call money.
The company, forfeited the shares of Lakhan and Paras. Subsequently the forfeited shares were reissued for ₹ 80 per share as fully paid-up . Show the entries for the above transactions in the Cash Book and journal of the company
Solution
Journal
|
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
Equity Share Application A/c (80,000×30) |
Dr. |
|
24,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
|
24,00,000 |
|
|
(Application money transferred to share capital) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c (80,000×40) |
Dr. |
|
32,00,000 |
|
|
|
To Equity Share Capital A/c (80,000×20) |
|
|
|
16,00,000 |
|
|
To Securities Premium Reserve A/c (80,000×20) |
|
|
|
16,00,000 |
|
|
(Allotment money due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share First and Final Call A/c (80,000×50) |
Dr. |
|
40,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
|
40,00,000 |
|
|
(First call money due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c (600×100) |
Dr. |
|
60,000 |
|
|
|
Securities Premium Reserve A/c (200×20) |
Dr. |
|
4,000 |
|
|
|
To Equity Share Allotment A/c (200×40) |
|
|
|
8,000 |
|
|
To Equity Share First and Final Call (600×50) |
|
|
|
30,000 |
|
|
To Equity Share Forfeiture A/c (200×30 + 400×50) |
|
|
|
26,000 |
|
|
(600 shares forfeited for non-payment of allotment and call money) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Forfeiture A/c (600×20) |
Dr. |
|
12,000 |
|
|
|
To Equity Share Capital A/c |
|
|
|
12,000 |
|
|
(600 shares reissued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Forfeiture A/c Dr. |
|
14,000 |
|
|
|
|
To Capital Reserve A/c |
|
|
14,000 |
|
|
|
(Profit on reissue transferred to capital reserve) |
|
|
||
Cash Book
Dr. Cr.
|
Date |
Particulars |
L.F. |
Amount (Rs) |
Date |
Particulars |
L.F. |
Amount (Rs) |
|
Equity Share Application A/c (80,000×30) |
|
24,00,000 |
Balance c/d |
|
96,10,000 |
||
|
|
Equity Share Allotment A/c (79,800×40) |
|
31,92,000 |
|
|
|
|
|
|
Equity Share First Call A/c (79,400×50) |
|
39,70,000 |
|
|
|
|
|
|
Equity Share Capital A/c (600×80) |
|
48,000 |
|
|
|
|
|
|
|
|
96,10,000 |
|
|
|
96,10,000 |
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