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Question
Pass necessary journal entries in the books of the company for the following transactions:
Vishesh Ltd. forfeited 1,000 Equity Shares of ₹ 10 each issued at a premium of ₹ 2 per share for non-payment of allotment money of ₹ 5 per share including premium. The final call of ₹ 2 per share was not yet called on these shares. Of the forfeited shares 800 shares were reissued at ₹ 12 per share as fully paid-up.
The remaining shares were reissued at ₹ 11 per share fully paid-up.
Solution
Journal
In the books of Vishesh Ltd.
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
|
Equity Share Capital A/c (8×1,000) |
Dr. |
|
8,000 |
|
|
|
|
Securities Premium A/c (2×1,000) |
Dr. |
|
2,000 |
|
|
|
|
To Share Forfeiture A/c |
|
|
|
5,000 |
|
|
|
To Calls-in-Arrears |
|
|
|
5,000 |
|
|
|
(1,000 shares of Rs 10 each issued at premium of Rs 2 forfeited for non payment of allotment money of Rs 5 including premium, final call of Rs 2 not yet made) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (12×800) |
Dr. |
|
9,600 |
|
|
|
|
To Share Capital A/c |
|
|
|
8,000 |
|
|
|
To Securities Premium A/c |
|
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1,600 |
|
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(800 shares reissued at Rs 12 fully paid up) |
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Bank A/c (11×200) |
Dr. |
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2,200 |
|
|
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|
To Share Capital A/c |
|
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2,000 |
|
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To Securities Premium A/c |
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200 |
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(200 shares reissued at Rs 11 fully paid up) |
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Share Forfeiture A/c |
Dr. |
|
5,000 |
|
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To Capital Reserve A/c |
|
|
|
5,000 |
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(Profit on reissue transferred to capital reserve) |
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