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Question

150 shares of ₹ 10 each issued at a premium of ₹ 4 per share payable with allotment were forfeited for non-payment of allotment money of ₹ 8 per share including premium. The first and final call of ₹ 4 per Pass Journal entries in the books of X Ltd. for the above.

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Solution

Date
Particulars
L.F.
Debit
Amount
(₹)
Credit
Amount
(₹)
Share Capital A/c
Dr.
900
Securities Premium A/c
Dr.
600
To Share Allotment A/c
1,200
To Share Forfeiture A/c
300
(150 shares of Rs 10 each forfeited for non–payment of allotment money of Rs 8 per share including premium of Rs 4 per share)
Bank A/c
Dr.
2,250
To Share Capital A/c
1,500
To Securities Premium A/c
750
(150 shares of Rs 10 each reissued for Rs 15 per share fully paid–up)
Share Forfeiture A/c
Dr.
300
To Capital Reserve A/c
300
(Balance of Share Forfeiture Account transferred to Capital Reserve Account)

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