Question

Ajita Ltd. issued 2,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share payable as:

₹ 3 on application

₹ 5 on allotment (including ₹ 2 premium)

₹ 4 on first and final call

Application were received for 2,40,000 equity shares and pro-rota allotment was made to all the applicants.

The excess application money was adjusted with allotment Premo who was allotted 400 shares failed to pay the first and final call and her shares were forfeited.

Pass Journal entries in the Books of Ajita Ltd.

Answer 1

Journal of Ajita Ltd.
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
(1)	Bank A/c    ...Dr.		7,20,000	-
	To Equity Share Application A/c		-	7,20,000
	(Being equity share application money received on 2,40,000 shares @ ₹ 3 per share)
(2)	Equity Share Application A/c    ...Dr.		7,20,000	-
	To Equity Share Capital A/c		-	6,00,000
	To Equity Share Allotment A/c		-	1,20,000
	(Being application money on 2,00,000 equity shares transferred to share capital A/c and excess money retained for allotment)
(3)	Equity Share Allotment A/c    ...Dr.		10,00,000	-
	To Equity Share Capital A/c		-	6,00,000
	To Share Premium A/c		-	4,00,000
	(Being allotment amount due on 2,00,000 equity shares @ ₹ 5 including premium)
(4)	Bank A/c    ...Dr.		8,80,000	-
	To Equity Share Allotment A/c		-	8,80,000
	(Being equity share allotment amount received) (10,00,000 - 1,20,000)
(5)	Equity Share First and Final Call A/c    ...Dr.		8,00,000	-
	To Equity Share Capital A/c		-	8,00,000
	(Being call amount due on 2,00,000 shares @ ₹ 4 per share)
(6)	Bank A/c    ...Dr.		7,98,400	-
	Calls in Arrears A/c		1,600	-
	To Equity Share First and Final Call A/c		-	8,00,000
	(Being call amount received on 1,99,600 shares @ ₹ 4 per share)
(7)	Equity Share Capital A/c    ...Dr.		4,000	-
	To Share First and Final Call A/c		-	1,600
	To Share Forfeiture A/c (Bal fig)		-	2,400
	(Being forfeiture of 400 shares on account of non-payment of call amount)