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Question -

Kishna Ltd issued 15,000 shares of Rs 100 each at a premium of Rs 10 per share, payable as follows:

All the shares subscribed and the company received all the money due, With the exception of the allotment and call money on 150 shares. These shares were forfeited and reissued to Neha as fully paid share of Rs 12 each.
Give journal entries in the books of the company.



Answer -

Books of Krishna Ltd

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bank A/c

Dr.

 

4,50,000

 

 

 

To Share Application A/c

 

 

 

4,50,000

 

(Share Application money received for 15,000 shares @ Rs 30 per share)

 

 

 

 

 

 

 

 

 

Share Application A/c

Dr.

 

4,50,000

 

 

 

To Share Capital A/c

 

 

 

4,50,000

 

(Share Application money of 15,000 shares transferred to Share

Capital Account)

 

 

 

 

 

 

 

 

 

Share Allotment A/c

Dr.

 

7,50,000

 

 

 

To Share Capital A/c

 

 

6,00,000

 

 

To Securities Premium A/c

 

 

1,50,000

 

(Share Allotment money on 15,000 shares @ Rs 50 per share

including Rs 10 securities premium due)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

7,42,500

 

 

 

To Share Allotment A/c

 

 

 

7,42,500

 

(Share Allotment received on 14,850 shares and 150 shares

failed to pay the money due)

 

 

 

 

 

 

 

 

 

Share First and Final Call A/c

Dr.

 

4,50,000

 

 

 

To Share Capital A/c

 

 

 

4,50,000

 

(Share First and Final Call for 15,000 shares @ Rs 30 per share due)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

4,45,500

 

 

 

To Share First and Final Call A/c

 

 

4,45,500

 

(Share First and Final Call received for 14,850 shares @ Rs 30 per share and 150 shares failed to pay amount due)

 

 

 

 

 

 

 

 

 

Share Capital A/c (150×100)

Dr.

 

15,000

 

 

Share Premium A/c (150×10)

Dr.

 

1,500

 

 

 

To Share Allotment A/c (150×50)

 

 

7,500

 

 

To Share First and Final Call A/c (150×30)

 

 

4,500

 

 

To Share Forfeiture A/c (150×30)

 

 

4,500

 

(150 shares forfeited for non-payment of Share Allotment and Share

First and Final Call  )

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

18,000

 

 

 

To  Share Capital A/c

 

 

 

15,000

 

 

To Securities Premium A/c

 

 

 

3,000

 

(150 shares of Rs 100 each reissued @ Rs 120 to Neha)

 

 

 

 

 

 

 

 

 

 

Share Forfeiture A/c

Dr.

 

4,500

 

 

 

To Capital Reserve A/c

 

 

 

4,500

 

(Balance of Share Forfeiture Account transferred to Capital Reserve

Account)

 

 

 

 

 

 

 

 

 

 

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