Question

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

On Application	---	₹ 30 per share,
On Allotment	---	₹ 40 per share(including premium),
On First and Final call	---	₹ 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 reissued  for ₹  80 per share as fully paid-up . Show the entries for the above transactions in the Cash Book and journal of the company

Answer 1

Journal

Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Equity Share Application  A/c (80,000××30)	Dr.		24,00,000
	To Equity Share Capital A/c				24,00,000
	(Application money transferred to share capital)
	Equity Share Allotment A/c (80,000××40)	Dr.		32,00,000
	To Equity Share Capital A/c (80,000××20)				16,00,000
	To Securities Premium Reserve A/c (80,000××20)				16,00,000
	(Allotment money due)
	Equity Share First and Final Call A/c (80,000××50)	Dr.		40,00,000
	To Equity Share Capital A/c				40,00,000
	(First call money due)
	Equity Share Capital A/c (600××100)	Dr.		60,000
	Securities Premium Reserve A/c (200××20)	Dr.		4,000
	To Equity Share Allotment A/c (200××40)				8,000
	To Equity Share First and Final Call (600××50)				30,000
	To Equity Share Forfeiture A/c (200××30 + 400××50)				26,000
	(600 shares forfeited for non-payment of allotment and call money)
	Equity Share Forfeiture A/c (600××20)	Dr.		12,000
	To Equity Share Capital A/c				12,000
	(600 shares reissued)
	Equity Share Forfeiture A/c                                               Dr.			14,000
	To Capital Reserve A/c				14,000
	(Profit on reissue transferred to capital reserve)

Cash Book

Dr.                                                                                 Cr.

Date	Particulars	L.F.	Amount (Rs)	Date	Particulars	L.F.	Amount (Rs)
	Equity Share Application A/c (80,000××30)		24,00,000		Balance c/d		96,10,000
	Equity Share Allotment A/c (79,800××40)		31,92,000
	Equity Share First Call  A/c (79,400××50)		39,70,000
	Equity Share Capital A/c (600××80)		48,000
			96,10,000				96,10,000