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Issue odf Shares

A Ltd. issued 10,000 equity shares and received applications for 8,000 shares. Due to non-payment on 100 shares, these were forfeited and later reissued at Rs. 8 each, with various journal entries recorded for the transactions. The document details the journal entries reflecting the application, allotment, calls, forfeiture, and reissue of shares.

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2 views

Issue odf Shares

A Ltd. issued 10,000 equity shares and received applications for 8,000 shares. Due to non-payment on 100 shares, these were forfeited and later reissued at Rs. 8 each, with various journal entries recorded for the transactions. The document details the journal entries reflecting the application, allotment, calls, forfeiture, and reissue of shares.

Uploaded by

Krizs
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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8. A Ltd.

, issued 10,000 equity shares of


Rs.10 each payable as under. Rs. 2 on
application Rs. 5 on allotment,Rs. 3 on
first and final call
The public applied for Rs.8,000
shares which are allotted. All the money
due to shares was received except the
first and final all on 100 shares. These
shares were forfeited and reissued at
Rs.8 per share. Show the journal entries
in the books of the company
Journal Entries in the books of A Ltd
Date Particulars Debit Credit
Bank A/c 10,000 x 2 -Dr 20,000
To Share application A/c 20,000
(Being the receipts of 10,000
application money of Rs.2 each)
Share application A/c 16,000 16,000
8,000 x 2 Dr
To Share capital A/c
(Being transfer of share application to
share capital)
Share allotment A/C 8,000 x 5 -Dr 40,000
To Share Capital A/c 40,000
(Being the allotment money due on
8,000 share of Rs.5 each)
Bank A/c 8,000 x 5 -Dr 40,000
To Share allotment A/c 40,000
(Being the allotment money
received)
Share first and Final call A/c 24,000
8,000 x 3 24,000
To Share capital A/c
(Being the first and Final
call money due on 8,000 shares of Rs.3
each)
Bank (8,000-100) 7,900 x 3 -Dr 23,700
To Share first and Final 23,700
call A/c
(Being the first and call money
received 7,900 shares of Rs.3 each)

Share capital A/c 100 x 10 1,000


-Dr 300
To First and final call A/c 100 x 3 700
To Share forfeiture A/c 100 x 7
(Being 100 shares
forfeited for non- payment of first and
final call money due)
Bank A/c 100 x 8 -Dr 800
Forfeited of shares A/c 100 x 2 200
To Share capital A/c 100 x 10
(Being 100 forfeiture of 1,000
shares re-issued at Rs. 8 each)
Forfeited of shares A/c (700-200) 500
-Dr
To Capital Reserve 500
A/c
(Being transfer of forfeited share
A/c transferred to capital reserve A/c)

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