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.
Books of Naman Ltd
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Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
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Bank A/c |
Dr. |
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5,00,000 |
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To Share Application A/c |
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5,00,000 |
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(Shares Application money received for 20,000 shares @ Rs 25 each) |
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Share Application A/c |
Dr. |
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5,00,000 |
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To Share Capital |
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5,00,000 |
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(Share Application money of 20,000 shares @ Rs 25 each transferred to Share Capital Account) |
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Share Allotment A/c |
Dr. |
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6,00,000 |
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To Share Capital A/c |
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6,00,000 |
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(Share Allotment due on 20,000 shares @ Rs 30 each) |
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Bank A/c |
Dr. |
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5,94,000 |
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To Share Allotment A/c |
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5,94,000 |
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(Allotment money received for 19,800 shares @ Rs 30 per share) |
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Share First Call A/c |
Dr. |
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5,00,000 |
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To Share Capital A/c |
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5,00,000 |
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(Share First Call money due on 20,000 @ Rs 25 per share) |
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Bank A/c |
Dr. |
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4,92,500 |
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To Share First Call A/c |
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4,92,500 |
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(Share First Call received @ Rs 25 per share for 19,700 shares) |
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Share Final Call A/c |
Dr. |
|
4,00,000 |
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To Share Capital A/c |
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4,00,000 |
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(Share Final Call money due on 20,000 shares @ 20 per share) |
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Bank A/c |
Dr. |
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3,94,000 |
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To Share final call A/c |
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|
3,94,000 |
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(Share Final Call received @ Rs 20 per Share for 19,700 shares and 300 shares failed to pay the call) |
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Share Capital A/c |
Dr. |
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30,000 |
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To Share Forfeiture A/c (200×25+100×55) |
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10,500 |
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To Share Allotment (200×30) |
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6,000 |
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To Share First Call A/c (300×25) |
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7,500 |
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To Share Final Call A/c (300×20) |
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6,000 |
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(300 Shares forfeited) |
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Alternatively this question can be solved by debiting Calls in Arrears Account
Books of Naman Ltd
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Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|||
|
Bank A/c |
Dr. |
|
5,00,000 |
|
||
|
|
To Share Application A/c |
|
|
|
5,00,000 |
|
|
(Share Application money received on application for 20,000 shares @ Rs 25 per share) |
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Share Application A/c |
Dr. |
|
5,00,000 |
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||
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To Share Capital A/c |
|
|
|
5,00,000 |
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|
(Share Application money for 20,000 shares @ Rs 25 per share transferred to Share Capital Account) |
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Share Allotment A/c |
Dr. |
|
6,00,000 |
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||
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To Share Capital A/c |
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|
6,00,000 |
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(Share Allotment money due on 20,000 shares @ Rs 30 per share) |
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Bank A/c |
Dr. |
|
5,94,000 |
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Calls in Arrears A/c |
Dr. |
|
6,000 |
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To Share Allotment A/c |
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|
6,00,000 |
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(Allotment money received for 19,800 shares @ Rs 30 per share and 200 shares failed to pay the Allotment) |
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Share First Call A/c |
Dr. |
|
5,00,000 |
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||
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To Share Capital A/c |
|
|
5,00,000 |
||
|
(Share First Call money due on 20,000 shares @ Rs 25 per share) |
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|||
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Bank A/c |
Dr. |
|
4,92,500 |
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Calls in Arrears A/c |
Dr. |
|
7,500 |
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||
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To Share First Call A/c |
|
|
5,00,000 |
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(Share First Call money for 19,700 shares @ Rs 25 each received except 300 shares) |
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Share Final Call A/c |
Dr. |
|
4,00,000 |
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||
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To Share Capital A/c |
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|
4,00,000 |
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(Share Final Call money due on 20,000 shares @ Rs 20 per share) |
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Bank A/c |
Dr. |
|
3,94,000 |
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Calls in Arreras A/c |
Dr. |
|
6,000 |
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||
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|
To Share final call A/c |
|
|
4,00,000 |
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|
(Share Final Call money received for 19,700 shares @ Rs 20 per share except 300 shares) |
|
|
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|||
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Share Capital A/c |
Dr. |
|
30,000 |
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||
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To Share Forfeiture A/c (200×25+100×55) |
|
|
10,500 |
||
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To Calls in Arrears A/c |
|
|
19,500 |
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|
(300 Shares forfeited on account failed to pay the money due) |
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Working Note:
1. Forfeited Amount
Amount on application |
(300 shares @ Rs 25 each) |
= |
7,500 |
Amount on allotment |
(100 Shares @ Rs 30 each) |
= |
3,000 |
|
|
|
10,500 |