Jyoti Ltd makes an issue of 50-000 equity shares of Rs 10 each at a premium of Rs 2 per share- payable as follows - On application Rs 4 per share- On allotment Rs 6 per share- including premium- On First amp- Final Call Rs 2 per share- Allotment money has bot been received on 100 shares and call have not been received on 200 shares respectively- The company forfeited these 200 shares and reissued at a discount of 10

In the Books of Jyoti Ltd.JournalDateParticularsL.F.DebitAmount(Rs)CreditAmount(Rs) nbsp;Bank A/c (50,000x4)Dr. nbsp;2,00,000 nbsp; nbsp;To Equity Share ...

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Byju's Answer

Standard XII

Accountancy

Issue of Shares at Discount

Jyoti Ltd mak...

Question

Jyoti Ltd makes an issue of 50,000 equity shares of Rs 10 each at a premium of Rs 2 per share, payable as follows : On application Rs 4 per share; On allotment Rs 6 per share( including premium); On First & Final Call Rs 2 per share.
Allotment money has bot been received on 100 shares and call have not been received on 200 shares respectively. The company forfeited these 200 shares and reissued at a discount of 10% as fully paid.
Give necessarey journal entries of the above transactions in the books of the company.

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Solution

In the Books of Jyoti Ltd.
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)

Bank A/c (50,000x4)
Dr.

2,00,000

To Equity Share Application A/c

2,00,000

(being application money received)

Equity Share Application A/c
Dr.

2,00,000

To Equity Share Capital A/c

2,00,000

(being application money transferred to capital)

Equity Share Allotment A/c
Dr.

3,00,000

To Equity Share Capital A/c (50,000x4)

2,00,000

To securities Premium Reserve A/c (50,000x2)

1,00,000

(being allotment due)

Bank A/c (49,900x6)
Dr.

2,99,400

To Equity Share Allotment A/c

2,99,400

(being amount received on allotment on 49,900 shares)

Equity Share 1^st and Final Call A/c (50,000x2)
Dr.

1,00,000

To Equity Share Capital A/c

1,00,000

(being first and final call due)

Bank A/c (49,800x2)
Dr.

99,600

To Equity Share 1^st and Final Call A/c

99,600

(being amount received on first and final call on 49,800 shares)

Equity Share Capital A/c (200x10)
Dr.

2,000

Securities Premium Reserve A/c (100x2)
Dr.

200

To Equity Share Allotment A/c (100x6)

600

To Equity Share 1^st and Final Call A/c (200x2)

400

To Equity Share Forfeiture A/c

1,200

(being 200 shares forfeited including 100 shares for non-payment of allotment and final call and 100 share for non-payment of final call only)

Bank A/c (200x10)*90%
Dr.

1,800

Equity Share Forfeiture A/c
Dr.

200

To Equity Share Capital A/c (200x10)

2,000

(being forfeited shares reissued at 90% as fully paid-up)

Equity Share Forfeiture A/c (1,200 – 200)
Dr.

1,000

To Capital Reserve A/c

1,000

(being balance share forfeiture amount transferred to Capital Reserve)

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On allotment --Rs 5 per share.

On first and final call -- Rs 2 per share.

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Pass necessary journal entries to record the above transactions in the books of Bhagwati Ltd.

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In the Books of Jyoti Ltd.
Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c (50,000x4)	Dr.		2,00,000
	To Equity Share Application A/c				2,00,000
	(being application money received)

	Equity Share Application A/c	Dr.		2,00,000
	To Equity Share Capital A/c				2,00,000
	(being application money transferred to capital)

	Equity Share Allotment A/c	Dr.		3,00,000
	To Equity Share Capital A/c (50,000x4)				2,00,000
	To securities Premium Reserve A/c (50,000x2)				1,00,000
	(being allotment due)

	Bank A/c (49,900x6)	Dr.		2,99,400
	To Equity Share Allotment A/c				2,99,400
	(being amount received on allotment on 49,900 shares)

	Equity Share 1^st and Final Call A/c (50,000x2)	Dr.		1,00,000
	To Equity Share Capital A/c				1,00,000
	(being first and final call due)

	Bank A/c (49,800x2)	Dr.		99,600
	To Equity Share 1^st and Final Call A/c				99,600
	(being amount received on first and final call on 49,800 shares)

	Equity Share Capital A/c (200x10)	Dr.		2,000
	Securities Premium Reserve A/c (100x2)	Dr.		200
	To Equity Share Allotment A/c (100x6)				600
	To Equity Share 1^st and Final Call A/c (200x2)				400
	To Equity Share Forfeiture A/c				1,200
	(being 200 shares forfeited including 100 shares for non-payment of allotment and final call and 100 share for non-payment of final call only)

	Bank A/c (200x10)*90%	Dr.		1,800
	Equity Share Forfeiture A/c	Dr.		200
	To Equity Share Capital A/c (200x10)				2,000
	(being forfeited shares reissued at 90% as fully paid-up)

	Equity Share Forfeiture A/c (1,200 – 200)	Dr.		1,000
	To Capital Reserve A/c				1,000
	(being balance share forfeiture amount transferred to Capital Reserve)