Question

Naman Ltd issued 20,000 shares of Rs. 100 each, payable Rs. 25 on application, Rs. 30 on allotment, Rs. 25 on first call and the balance on final call. All money duly received except Anubha, who holding 200 shares did not pay allotment and calls money and Kumkum, who holding 100 shares did not pay both the calls. The directors forfeited shares of Anubha and Kumkum.
Give journal entries.

Answer 1

$\text{Journal Entries}$
$\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{LF}& \text{Amt. (Dr)}& \text{Amt.(Cr)}\\ \text{(i)}& \text{Bank A/c}& \text{Dr}& & 5,00,000& \\ & \text{To Share Application A/c}& & & & 5,00,000\\ & \text{(Being shares applications money received for}& & & & \\ & \text{20,000 shares @ Rs.25 each)}& & & & \\ & \underset{–}{}& & & & \\ \text{(ii)}& \text{Share Application A/c}& \text{Dr}& & 5,00,000& \\ & \text{To Share Capital A/c}& & & & 5,00,000\\ & \text{(Being shares application money of 20,000 shares @}& & & & \\ & \text{Rs.25 each transfered to share capital account)}& & & & \\ & \underset{–}{}& & & & \\ \text{(iii)}& \text{Share Allotment A/c}& \text{Dr}& & 6,00,000& \\ & \text{To Share Capital A/c}& & & & 6,00,000\\ & \text{(Being share allotment money due on 20,000 shares}& & & & \\ & \text{@ Rs.30 per share)}& & & & \\ & \underset{–}{}& & & & \\ \text{(iv)}& \text{Bank A/c}(19,800\times 30)& \text{Dr}& & 5,94,000& \\ & \text{Calls-in-Arrear A/c}(200\times 30)& \text{Dr}& & 6,000& \\ & \text{To Share Allotment A/c}& & & & 6,00,000\\ & \text{(Being allotment money received for 19,800 shares}& & & & \\ & \text{@ Rs.30 per share and 200 shares failed to pay the}& & & & \\ & \text{allotment.)}& & & & \\ & \underset{–}{}& & & & \\ \text{(v)}& \text{Share First Call A/c}& \text{Dr}& & 5,00,000& \\ & \text{To Share Capital A/c}& & & & 5,00,000\\ & \text{(Being share final call money due on 20,000 shares}& & & & \\ & \text{@ Rs.25 per share.)}& & & & \\ & \underset{–}{}& & & & \\ \text{(vi)}& \text{Bank A/c}(19,700\times 25)& \text{Dr}& & 4,92,500& \\ & \text{Calls-in-Arrear A/c}(300\times 25)& \text{Dr}& & 7,500& \\ & \text{To Share First Call A/c}& & & & 5,00,000\\ & \text{(Being share first call money for 19,700 shares @}& & & & \\ & \text{Rs.25 each received except 300 shares)}& & & & \\ & \underset{–}{}& & & & \\ \text{(vii)}& \text{Share Final Call A/c}& \text{Dr}& & 4,00,000& \\ & \text{To Share Capital A/c}& & & & 4,00,000\\ & \text{(Being share final call money due on 20,000 shares}& & & & \\ & \text{@ Rs.20 per share)}& & & & \\ & \underset{–}{}& & & & \\ \text{(viii)}& \text{Bank A/c}(19,700\times 20)& \text{Dr}& & 3,94,000& \\ & \text{Calls-in-Arrear A/c}(300\times 20)& \text{Dr}& & 6,000& \\ & \text{To Share Final Call A/c}& & & & 4,00,000\\ & \text{(Being share final call money received for 19,700}& & & & \\ & \text{shares @ Rs.20 per share except 300 shares)}& & & & \\ & \underset{–}{}& & & & \\ \text{(ix)}& \text{Share Capital A/c}& \text{Dr}& & 30,000& \\ & \text{To Share Forfeiture A/c (Working Note)}& & & & 10,500\\ & \text{To Calls-in-Arrears A/c (Working Note)}& & & & 19,500\\ & \text{(Being 300 shares forfeited on account failed to pay}& & & & \\ & \text{the money due)}& & & & \end{array}$

Working Note:
(i) Share forfeiture amount
$\begin{array}{ccc}& & \\ \text{Received application money on (200 + 100)}& & \\ \text{shares @ 25 each}& =& 7,500\\ \text{Received allotment money on 100 shares @ 30 each}& =& 3,000\\ & \text{Rs}& \overline{\underset{–}{10,500}}\end{array}$

$\begin{array}{ccc}& & \\ \text{(ii)~Calls-in-Arrear}& & \\ \text{On Allotment}& =& 6,000\\ \text{On First Call}& =& 7,500\\ \text{On Final Call}& =& 6,000\\ & \text{Rs}& \overline{\underset{–}{19,500}}\end{array}$