Question

Dogra Ltd. had an authorised capital of ₹ 1,00,00,000 divided into Equity Shares of ₹ 100 each. The company offered 84,000 shares to the public at premium.
The amount was payable as follow:

On Application	$—$	₹ 30 per share,
On Allotment	$—$	₹ 40 per share(including premium),
On First and Final call	$—$	₹ 50 per share.

Applications were received for 80,000 shares.
All sums were duly received except the following:
Lakhan, a holder of 200 shares did not pay allotment and call money.
Paras, a holder of 400 shares did not pay call money.
The company, forfeited the shares of Lakhan and Paras. Subsequently the forfeited shares were reissued for ₹ 80 per share as fully paid-up . Show the entries for the above transactions in the Cash Book and journal of the company

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Equity Share Application A/c (80,000$\times$30)	Dr.		24,00,000
	To Equity Share Capital A/c				24,00,000
	(Application money transferred to share capital)
	Equity Share Allotment A/c (80,000$\times$40)	Dr.		32,00,000
	To Equity Share Capital A/c (80,000$\times$20)				16,00,000
	To Securities Premium Reserve A/c (80,000$\times$20)				16,00,000
	(Allotment money due)
	Equity Share First and Final Call A/c (80,000$\times$50)	Dr.		40,00,000
	To Equity Share Capital A/c				40,00,000
	(First call money due)
	Equity Share Capital A/c (600$\times$100)	Dr.		60,000
	Securities Premium Reserve A/c (200$\times$20)	Dr.		4,000
	To Equity Share Allotment A/c (200$\times$40)				8,000
	To Equity Share First and Final Call (600$\times$50)				30,000
	To Equity Share Forfeiture A/c (200$\times$30 + 400$\times$50)				26,000
	(600 shares forfeited for non-payment of allotment and call money)
	Equity Share Forfeiture A/c (600$\times$20)	Dr.		12,000
	To Equity Share Capital A/c				12,000
	(600 shares reissued)
	Equity Share Forfeiture A/c Dr.			14,000
	To Capital Reserve A/c				14,000
	(Profit on reissue transferred to capital reserve)

Cash Book
Dr.				Cr.
Date	Particulars	L.F.	Amount (Rs)	Date	Particulars	L.F.	Amount (Rs)
	Equity Share Application A/c (80,000$\times$30)		24,00,000		Balance c/d		96,10,000
	Equity Share Allotment A/c (79,800$\times$40)		31,92,000
	Equity Share First Call A/c (79,400$\times$50)		39,70,000
	Equity Share Capital A/c (600$\times$80)		48,000
			96,10,000				96,10,000