Question

Black Stone Ltd. issued 10,000 Equity Shares of ₹ 10 each at a premium of ₹ 3 per share payable ₹ 5 on application, ₹ 5 (including premium) on allotment and the balance on first call. All the shares offered were applied for and allotted. All the money due on allotment was received except on 200 shares. Call was made. All the amount due thereon was received except on 300 shares. Directors forfeited 200 shares on which both allotment and call money were not received.
Pass necessary Journal entries to record the above.

Answer 1

Issued and Applied 10,000 Shares at ₹ 10 each at a premium of ₹ 3 per share

Application	₹	5
Allotment	₹	5	(2+3)
First and Final Call	₹	3
	₹	13	(10+3) Called-up

In the Books of Black Stone Ltd.
Journal

Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
	Bank A/c	Dr.		50,000
	To Equity Share Application A/c				50,000
	(Share application money received for 10,000 shares at Rs 5 each)
	Equity Share Application A/c	Dr.		50,000
	To Equity Share capital A/c				50,000
	(Share application money transferred to Share Capital Account)
	Equity Share Allotment A/c	Dr.		50,000
	To Equity Share Capital A/c				20,000
	To Securities Premium				30,000
	(Share allotment due on 10,000 shares at Rs 5 per share including premium Rs 3)
	Bank A/c	Dr.		49,000
	Calls-in-Arrears A/c	Dr.		1,000
	To Equity Share Allotment A/c				50,000
	(All allotment money received except 200 shares)
	Equity Share First and Final Call A/c	Dr.		30,000
	To Equity Share Capital A/c				30,000
	(First and final due on 10,000 shares at Rs 3 per share)
	Bank A/c	Dr.		29,100
	Calls-in-Arrears A/c	Dr.		900
	To Equity Share First and Final Calls A/c				30,000
	(First and final call received on all shares except 300 shares)
	Equity Share Capital A/c	Dr.		2,000
	Securities Premium A/c	Dr.		600
	To Share Forfeiture A/c				1,000
	To Calls-in-Arrears A/c				1,600
	(200 shares forfeited for the non-payment of Rs 8 per share including Rs 3 premium)