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VXN Ltd. invi...

Question

VXN Ltd. invited applications for issuing $50, 000$ equity shares of $R s . 10$ each at a premium of $R s . 8$ per share. The amount was payable as follows:
On Application $R s . 4$ per share (including Rs. 2 premium).
On Allotment $R s . 6$ per share (including $R s . 3$ premium).
On First Call $R s . 5$ per share (including $R s . 1$ premium).
On Second and Final Call Balance Amount.
The issue was fully subscribed. Gopal, a shareholder holding $200$ shares, did not pay the allotment money and Madhav, a holder of $400$ shares, paid his entire share money along with the allotment money. Gopal's shares were immediately forfeited after allotment. Afterwards, the first call was made. Krishna, a holder of $100$ shares, failed to pay the first call money and Girdhar. a holder of $300$ shares, paid the second call money also along with the first call. Krishna's shares were forfeited immediately after the first call. Second and final call was made afterwards and was duly received. All the forfeited shares were reissued at $R s . 9$ per share fully paid up.
Pass necessary Journal Entries for the above transactions in the books of the company.

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Solution

SN Particulars Dr. Cr.
1) Bank A/C Dr.
To Share Application A/C
[Being Application money received] 2,00,000
2,00,000
2) Share Application A/C Dr.
To Share Capital A/C
To Securities Premium A/C
[Being Application money transffered to capital A/C] 2,00,000
1,00,000
1,00,000
3) Equity share allotment A/C Dr.
To Equity share capital A/C
To Security Premium A/C
[Being share allotment money due] 3,00,000
1,50,000
1,50,000
4) Bank A/C Dr.
Call in Arreas A/C Dr.
To Call in advance A/C (Madhav)
To share Allotment A/C
[Being share allotment amount recived for 49,800 share, Madhav paid advance for 400 shars] 3,02,400
1,200
3,200
3,00,000
5) Share capital A/C Dr.
Security premium A/C Dr.
To Equity share allotment A/C
To Share forfeiture A/C
[Being share forfeitured) 1,000
1,000
1,200
800
6) Equity share first call A/C Dr.
To Equity share capital A/C
To Security premium A/C
[Being first call is Due] 2,50,000
2,00,000
50,000
7) Bank A/C Dr.
Call in Arrear A/C Dr.
To Equity share first call A/C
To Call in advances A/C
(Being first call received) 2,47,900
1,000
2,48,000
900
8) Call-in-advance (Madhav) Dr.
To Equity share first call A/C
(Being call in advance adjusted) 2,000
2,000
9) Equity share capital A/C Dr.
Security premium A/C Dr.
To First call A/C
To Forfeiture A/C
(Being equity share forfeiture) 900
600
500
1,000
10) Equity share final call A/C Dr.
To Equity share capital A/C
To Security premium A/c
(Being final call raised) 1,50,000
50,000
1,00,000
11) Bank A/C Dr.
To Equity share final call
(Being final call received) 1,47,000
1,47,000
12) Call in advance Dr.
To Equity share final call
(Being call in advance adjusted) 2,100
2,100
13) Bank A/C Dr.
Forfeiture share A/C Dr.
To Share capital A/C
[Being forfeited share reissued] 2,700
300
3,000
14) Forfeiture share A/C Dr.
To Capital reserve A/C
[Being forfeiture A/C transfeered] 1,500
1,500

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Similar questions

Q. VXN Ltd. invited applications for issuing 50,000 equity shares of ₹ 10 each at a premium of ₹ 8 per share . The amount was payable as follows:

On Application	$—$	₹ 4 per share (Including ₹ 2 premium);
On Allotment	$—$	₹ 6 per share (Including ₹ 3 premium);
On First Call	$—$	₹ 5 per share (Including ₹ 1 premium); and
On Second and Final Call	$—$	Balance Amount

The issue was fully subscribed . Gopal, a shareholder holding 200 shares, did not pay the allotment money and Madhav, a holder of 400 shares, paid his entire share money along with the allotment money. Gopal's shares were immediately forfeited after allotment . Afterwards, the first call was made. Krishna, a holder of 100 shares , failed to pay the first call money and Girdhar, a holder of 300 shares, paid the second call money also along with the first call . Krishna's shares were forfeited immediately after the first call. Second and final call was made afterwards and was duly received . All the forfeited shares were reissued at ₹ 9 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of the company.

Q. JS Ltd. invited applications for issuing

80, 000

equity shares of Rs.

10

each at a premium of Rs.

6

per share. The amount was payable as follows:
On application Rs.

4

per share (including premium Rs.

1

per share)
On Allotment Rs.

6

per share (including premium Rs.

3

per share)
On First and Final Call Balance.
Applications for

1, 60, 000

shares were received. Applications for

40, 000

shares were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Raman holding

400

shares failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards the final call was made. Veer who had applied for

1, 200

shares failed to pay the final call. His shares were also forfeited. Out of the forfeited shares

500

shares were re-issued at Rs.

8

per share fully paid-up. The re-issued shares included all the forfeited shares of Raman.
Pass necessary journal entries for the above transactions in the books of J.S. Ltd.

R.K.Ltd., invited applications for issuing 80,000 equity shares of Rs 10 each at a premium of Rs 35 per share. The amount was payable as follows:
On Application Rs 8 (including Rs 5 premium) per share.
On Allotment Rs 12 (including Rs 10 premium) per share.

On First and Final Call Balance.

Application for 75,000 shares were received and allotment was made to all the applicants. Rahim, a shareholder who was allotted 3,000 shares failed to pay allotment money and his shares were immediately forfeited. Afterwards, the first and final call was made. Suhani who held 3,000 shares failed to pay the final call. Her shares were also forfeited. All the forfeited shares were re-issued for a sum of Rs 62,000 as fully paid up.

Pass the necessary Journal entries for the above transactions in the books of R.K.Ltd.

Sargam Ltd., invited applications for issuing 80,000 equity shares of Rs 100 each at a premium. The amount was payable as follows :

On Application Rs 20 per share.

On Allotment Rs 60 (including premium) per share.

On First and Final Call Rs 40 per share.

Application for 1,20,000 shares were received. Allotment was made on pro-rata basis to all the applicants. Excess money received on applications was adjusted on sums due to allotment. Sitaram, who had applied for 6,000 shares failed to pay the allotment money and Harnam did not pay first and final call on 800 shares allotted to him. The shares of Sitaram and Harnam were forfeited. 4,200 of these shares were re-issued for Rs 100 per share as fully paid up. The re-issued shares included all the forfeited shares of Harnam.

Pass necessary Journal entries for the above transactions in the books of Sargam Ltd.

X LTd. issued 8,000 shares of Rs 100 each at a premium of Rs 40 per share. Amount was payable as follows:

$\begin{matrix} Rs. On application & 20 (including premium Rs 10 per share) On allotment & 50 (including premium Rs 30 per share) On first call & 30 On second and final call & 40 \end{matrix}$

Applications were received for 7,500 shares and all were aceepted. All money was received except:

(i) Ashwin, holding 100 shares, failed to pay allotment money and his shares were forfeited after allotment.

(ii) Monika, holding 200 shares, failed to pay first call money and her shares were forfeited after first call.

(iii) Ruchi, holding 300 shares, failed to pay second call money and her shares were forfeited.

All the forfeited shares were reissued at a discount of 5% as fully paid-up.

Pass the necessary journal entries in the books of X Ltd.

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

On Application Rs 30 per shares.

On Allotment Rs 40 per share (including premium).

On First and Final Call Rs 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 re-issued for Rs 80 per share fully paid up. Show the entries for the transaction in the Cash Book and Journal of the company.

Kaya Fab. Ltd. issued 1,00,000 equity shares of Rs 10 each payable as Rs 2 on application, Rs 4 on allotment and Rs 2 each on first and final call. Applications were received for 1,50,000 shares. Applicants of 50,000 shares were sent letters of regret and application money was refunded.

Madhur, a holder of 3,000 shares failed to pay allotment money which he paid along with the first call. Rohan, a shareholder holds 700 shares paid both the calls along with allotment. Sohan, a holder of 1,000 shares did not pay the first call and the final call. His shares were forfeited. The forfeited shares were re-issued at Rs 11 per shares as fully paid up.

Pass necessary Journal entries for the above transactions in the Books of the Company.

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SN	Particulars	Dr.	Cr.
1)	Bank A/C Dr. To Share Application A/C [Being Application money received]	2,00,000	2,00,000
2)	Share Application A/C Dr. To Share Capital A/C To Securities Premium A/C [Being Application money transffered to capital A/C]	2,00,000	1,00,000 1,00,000
3)	Equity share allotment A/C Dr. To Equity share capital A/C To Security Premium A/C [Being share allotment money due]	3,00,000	1,50,000 1,50,000
4)	Bank A/C Dr. Call in Arreas A/C Dr. To Call in advance A/C (Madhav) To share Allotment A/C [Being share allotment amount recived for 49,800 share, Madhav paid advance for 400 shars]	3,02,400 1,200	3,200 3,00,000
5)	Share capital A/C Dr. Security premium A/C Dr. To Equity share allotment A/C To Share forfeiture A/C [Being share forfeitured)	1,000 1,000	1,200 800
6)	Equity share first call A/C Dr. To Equity share capital A/C To Security premium A/C [Being first call is Due]	2,50,000	2,00,000 50,000
7)	Bank A/C Dr. Call in Arrear A/C Dr. To Equity share first call A/C To Call in advances A/C (Being first call received)	2,47,900 1,000	2,48,000 900
8)	Call-in-advance (Madhav) Dr. To Equity share first call A/C (Being call in advance adjusted)	2,000	2,000
9)	Equity share capital A/C Dr. Security premium A/C Dr. To First call A/C To Forfeiture A/C (Being equity share forfeiture)	900 600	500 1,000
10)	Equity share final call A/C Dr. To Equity share capital A/C To Security premium A/c (Being final call raised)	1,50,000	50,000 1,00,000
11)	Bank A/C Dr. To Equity share final call (Being final call received)	1,47,000	1,47,000
12)	Call in advance Dr. To Equity share final call (Being call in advance adjusted)	2,100	2,100
13)	Bank A/C Dr. Forfeiture share A/C Dr. To Share capital A/C [Being forfeited share reissued]	2,700 300	3,000
14)	Forfeiture share A/C Dr. To Capital reserve A/C [Being forfeiture A/C transfeered]	1,500	1,500