bharat tires limited invited applications for 100000 equity shares of rs 10 each issued at a premium of rs 4 per share. the amount was payble as follows: on application rs 6 (including premium rs 2) on allotmentrs 6 (including premium rs 2), applications for 150000 shares were recieved. allotment was made to all the applications on pro-rata basis. subodh, to whom 200 shares were alloted, failed to pay allotment and call money. vikram , to whom 100 shares were alloted, failed to pay the call money. their shares were forfeited and after wards re-issued @ rs 10 per share fully paid up.
pass neccessary journal entries with working notes
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
| Bank A/c | Dr. |
| 9,00,000 |
|
| To Share Application A/c |
|
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| 9,00,000 |
| ( Being application money received for 1,50,000 shares at Rs.6 per share) |
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| Equity share Application A/c | Dr. |
| 9,00,000 |
|
| To Share capital A/c |
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| 4,00,000 |
| To Securities Premium A/c |
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|
| 2,00,000 |
| To Share Allotment A/c |
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| 3,00,000 |
| (Being Application for 100000 Shares received and balance adjusted to allotment) |
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| Equity Share Allotment A/c | Dr. |
| 6,00,000 |
|
| To Equity share Capital A/c |
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| 4,00,000 |
| To Securities Premium A/c |
|
|
| 2,00,000 |
| ( Being Allotment due on 100000 shares) |
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| Bank A/c | Dr. |
| 2,99,400 |
|
| To Equity share Allotment A/c |
|
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| 2,99,400 |
| ( Being Money received except on 200 shares)* |
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| Equity Share Final call A/c | Dr. |
| 2,00,000 |
|
| To Equity Share Capital A/c |
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| 2,00,000 |
| (Being Final call due on 100000 shares) |
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| Bank A/c | Dr. |
| 1,99,400 |
|
| To Share Final call A/c |
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| 1,99,400 |
| ( Being final call received on shares except 300 shares) |
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| Equity Share Capital A/c | Dr. |
| 2,000 |
|
| Securities Premium A/c | Dr. |
| 400 |
|
| To Share Forfeiture A/c |
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|
| 1,400 |
| To Share Allotment A/c |
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| 600 |
| To Share Final call A/c |
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| 400 |
| (Being 200 Shares Forfeited) |
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| Equity Share Capital A/c | Dr. |
| 1,000 |
|
| To Share Forfeiture A/c |
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| 800 |
| To Share Final call A/c |
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| 200 |
| (Being 100 shares forfeited) |
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| Bank A/c | Dr. |
| 2,400 |
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| Share Forfeiture A/c | Dr. |
| 600 |
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| To Share capital A/c |
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| 3,000 |
| (Being 300share reissued) |
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| Share Forfeiture A/c | Dr. |
| 1,600 |
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| To Capital Reserve A/c |
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| 1,600 |
| (Being profit Transferred) |
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Working Notes: