Question

Amrit Ltd. issued 50,000 shares of ₹ 10 each at a premium of ₹ 2 per share payable as ₹ 3 on application, ₹ 4 on allotment (including premium) , ₹ 2 on first call and the remaining on second call.
Applications were received for 75,000 shares and pro rata allotment was made to all the applicants.
All moneys due were received except allotment and first call from Sonu who applied for 1,200 shares. All his shares were forfeited. The forfeited shares were reissued for ₹ 9,600. Final call was not made . Pass necessary Journal entries.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c	Dr.		2,25,000
	To Share Application A/c $(75,000\times 3)$				2,25,000
	(Application money received)
	Share Application A/c	Dr.		2,25,000
	To Share Capital A/c $(50,000\times 3)$				1,50,000
	To Share Allotment A/c				75,000
	(Application money adjusted on allotment)
	Share Allotment A/c $(50,000\times 4)$	Dr.		2,00,000
	To Share Capital A/c				1,00,000
	To Securities Premium A/c				1,00,000
	(Allotment money due on 50,000 shares)
	Bank A/c	Dr.		1,23,000
	Calls-in-Arrears A/c	Dr.		2,000
	To Share Allotment A/c				1,25,000
	(Allotment money received)
	Share First Call A/c $(50,000\times 2)$	Dr.		1,00,000
	To Share Capital A/c				1,00,000
	(First call money due on 50,000 shares)
	Bank A/c	Dr.		98,400
	Calls-in-Arrears A/c $(800\times 2)$	Dr.		1,600
	To Share First Call A/c				1,00,000
	(Call money received)
	Equity Share Capital A/c $(800\times 7)$	Dr.		5,600
	Securities Premium A/c $(800\times 2)$	Dr.		1,600
	To Calls-in-Arrears A/c				3,600
	To Share Forfeiture A/c $(1,200\times 3)$				3,600
	(800 shares forfeited for non-payment of allotment and call money)
	Bank A/c	Dr.		9,600
	To Share Capital A/c				5,600
	To Securities Premium A/c				4,000
	(Shares reissued at a premium)
	Share Forfeiture A/c	Dr.		3,600
	To Capital Reserve A/c				3,600
	(Profit on reissue transferred to capital reserve)

Working Notes:

WN1 Calculation of No. of Shares Allotted to Sonu


WN2 Calculation of Amount Received on Allotment