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Arushi Computes Ltd issued 10,000 equity shares of Rs.100 each at 10% discount. The net amount payable as follows.
(Rs.)          On Application=20          On Allotment=30(Rs.40 - discount Rs.10)          On First Call=30          On Final Call=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.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.


Solution

Working Notes:
Amount Transferred to Capital Reserve A/c
Amount transferred to Capital Reserve Account = Balance per share after adjustment × Number of shares reissued
₹ 9,750 = ₹ 65 × ₹ 150 per share
 

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