Arushi Computers Ltd. issued 10,000 equity shares of Rs. 100 each at 10% premium. The net amount payable as follows:

On application

Rs. 20

On allotment

Rs. 50 (Rs. 40 + premium Rs. 10)

On first call

Rs. 30

On final call

Rs. 10

A shareholder holding 200 shares did not pay final call. His shares were forfeited. Out of these 150 shares were reissued to Ms. Sonia at Rs. 75 per share.

Give journal entries in the books of the company.

Open in App

Solution

Books of Arushi Computers Ltd.

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

Bank A/c

Dr.

2,00,000

To Share Application A/c

2,00,000

(Share Application money received for 10,000 shares @ ₹20 per share)

Share Application A/c

Dr.

2,00,000

To Share Capital A/c

2,00,000

(Share Application money for 10,000 shares transferred to Share

Capital Account)

Share Allotment A/c

Dr.

5,00,000

To Share Capital A/c

4,00,000

To Securities Premium Reserve A/c 1,00,000

(Allotment money due on 10,000 shares @ ₹40 per share

excluding premium ₹10)

Bank A/c

Dr.

5,00,000

To Share Allotment A/c

5,00,000

(Share Allotment money received for 10,000 shares @ ₹50 per

share)

Share First Call A/c

Dr.

3,00,000

To Share Capital A/c

3,00,000

(Share First Call money due on 10,000 shares @ ₹30 per share)

Bank A/c

Dr.

3,00,000

To Share First Call A/c

3,00,000

(First Call money received for 10,000 shares @ ₹30 per share)

Share Final Call A/c

Dr.

1,00,000

To Share Capital A/c

1,00,000

(Final Call money due on 10,000 shares @ ₹10 per share)

Bank A/c

Dr.

98,000

To Share final call A/c

98,000

(Final Call money received for 9800 shares @ ₹10 per share and 200 shares failed to pay)

Share Capital A/c (200 $\times$ 100)

Dr.

20,000

To Share Final Call A/c (200 $\times$ 10)

2,000

To Share Forfeiture A/c (200 $\times$ 90)

18,000

(200 shares forfeited for non-payment of Final Call ₹ 10 per share)

Bank A/c (150 $\times$ 75)

Dr.

11,250

Share Forfeiture A/c (150 $\times$ 25)

Dr.

3,750

To Share Capital A/c (150 $\times$ 100)

Dr.

15,000

(150 forfeited shares reissued at ₹100 per share for ₹75)

Share Forfeiture A/c

Dr.

9,750

To Capital Reserve A/c

9,750

(Balance of 150 reissue shares after adjustment transferred to

Capital Reserve Account)

Working Notes:

Amount Transferred to Capital Reserve A/c

Amount credited to Share Forfeiture

₹ 90 per share

Less: Amount debited to Share Forfeiture

₹25 per share

Balance after adjustment

₹ 65 per share

Amount transferred to Capital Reserve Account = Balance per share after adjustment × Number of shares reissued

₹ 9,750 = ₹ 65 × ₹ 150 per share

Suggest Corrections

Similar questions

Arushi Computers Ltd issued 10,000 equity shares of Rs 100 each at 10% discount. The net amount payable as follows:

On application	Rs 20
On allotment	Rs 30 (Rs 40 – discount Rs 10 )
On first call	Rs 30
On final call	Rs 10

A shareholder holding 200 shares did not pay final call. His shares were forfeited. Out of these 150 shares were reissued to Ms. Sonia at Rs 75 per shares.

Give Journal entries in the books of the company.

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

On application	Rs 30
On allotment	Rs 50 (including premium)
On first and final call	Rs 30

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.

A limited company offered for subscription 10,000 Equity Shares of Rs 10 each at a premium of Rs 2 per share and 5,000, 10% Preference Shares of Rs 10 each at par.

The amount on equity shares was payable as thus:

On Application Rs 3 per share

On Allotment Rs 5 per share (including a premium)

On First Call Rs 4 per share

The amount of preference shares was payable as follows:

On Application Rs 3 per share

On Allotment Rs 4 per share

On First Call Rs 3 per share

All the shares were fully subscribed, called-up and paid.

Record these transactions in the cash book of the company.

Raunak Cotton Ltd. issued a prospectus inviting applications for 6,000 equity shares of Rs 100 each at a premium of Rs 20 per shares, payable as follows:

On application	Rs 20
On allotment	Rs 50 (including premium)
On first call	Rs 30
On final call	Rs 20

Applications were received for 10,000 shares and allotment was made Pro-rata to the applicants of 8,000 shares, the remaining applications Being refused. Money received in excess on the application was adjusted toward the amount due on allotment.

Rohit, to whom 300 shares were allotted failed to pay allotment and calls money, his shares were forfeited. Itika, who applied for 600 shares, failed to pay the two calls and her share were also forfeited. All these shares were sold to Kartika as fully paid for Rs 80 per shares.

Give journal entries in the books of the company.

Q. Arushi Computes Ltd issued 10,000 equity shares of Rs.100 each at 10% discount. The net amount payable as follows.

\begin{matrix} (Rs.) On Application & = & 20 On Allotment & = & 30 (Rs.40 - discount Rs.10) On First Call & = & 30 On Final Call & = & 10 \end{matrix}

A shareholder holding 200 shares did not pay final call. His shares were Forfeited. Out of these 150 shares were reissued to Ms. Sonia at Rs.75 per share. Give journal entries in the books of the company.A shareholder holding 200 shares did not pay final call. His shares were Forfeited. Out of these 150 shares were reissued to Ms. Sonia at Rs.75 per share. Give journal entries in the books of the company.

Arushi Computers Ltd. issued 10,000 equity shares of ₹. 100 each at 10% premium. The net amount payable as follows:
A shareholder holding 200 shares did not pay the final call. His shares were forfeited. Out of these 150 shares were reissued to Ms. Sonia at ₹. 75 per share.
Give journal entries in the books of the company.

Join BYJU'S Learning Program

On application	Rs. 20
On allotment	Rs. 50 (Rs. 40 + premium Rs. 10)
On first call	Rs. 30
On final call	Rs. 10

Books of Arushi Computers Ltd.
Date	Particulars			L.F.	Debit Amount (₹)	Credit Amount (₹)
	Bank A/c		Dr.		2,00,000
		To Share Application A/c				2,00,000
	(Share Application money received for 10,000 shares @ ₹20 per share)

	Share Application A/c		Dr.		2,00,000
		To Share Capital A/c				2,00,000
	(Share Application money for 10,000 shares transferred to Share Capital Account)

	Share Allotment A/c		Dr.		5,00,000
		To Share Capital A/c				4,00,000
		To Securities Premium Reserve A/c				1,00,000
	(Allotment money due on 10,000 shares @ ₹40 per share excluding premium ₹10)

	Bank A/c		Dr.		5,00,000
		To Share Allotment A/c				5,00,000
	(Share Allotment money received for 10,000 shares @ ₹50 per share)

	Share First Call A/c		Dr.		3,00,000
		To Share Capital A/c				3,00,000
	(Share First Call money due on 10,000 shares @ ₹30 per share)

	Bank A/c		Dr.		3,00,000
		To Share First Call A/c				3,00,000
	(First Call money received for 10,000 shares @ ₹30 per share)

	Share Final Call A/c		Dr.		1,00,000
		To Share Capital A/c				1,00,000
	(Final Call money due on 10,000 shares @ ₹10 per share)

	Bank A/c		Dr.		98,000
		To Share final call A/c				98,000
	(Final Call money received for 9800 shares @ ₹10 per share and 200 shares failed to pay)

	Share Capital A/c (200 $\times$ 100)		Dr.		20,000
		To Share Final Call A/c (200 $\times$ 10)				2,000
		To Share Forfeiture A/c (200 $\times$ 90)				18,000
	(200 shares forfeited for non-payment of Final Call ₹ 10 per share)

	Bank A/c (150 $\times$ 75)		Dr.		11,250
	Share Forfeiture A/c (150 $\times$ 25)		Dr.		3,750
		To Share Capital A/c (150 $\times$ 100)	Dr.			15,000
	(150 forfeited shares reissued at ₹100 per share for ₹75)

	Share Forfeiture A/c		Dr.		9,750
		To Capital Reserve A/c				9,750
	(Balance of 150 reissue shares after adjustment transferred to Capital Reserve Account)

Amount credited to Share Forfeiture	₹ 90 per share
Less: Amount debited to Share Forfeiture	₹25 per share
Balance after adjustment	₹ 65 per share