Question

Kishna Ltd issued 15,000 shares of Rs 100 each at a premium of Rs 10 per share, payable as follows:

On application	Rs. 30
On allotment	Rs 50 (including premium)
On the first and final call	Rs. 30

All the shares subscribed and the company received all the money due, with the exception of the allotment and call money on 150 shares. These shares were forfeited and reissued to Neha as fully paid shares of Rs 12 each.

Give journal entries in the books of the company.

Answer 1

Journal Entries in the books of Krishna Ltd.
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Bank A/c   ...Dr.		4,50,000	-
	To Share Application A/c		-	4,50,000
	(Share Application money received for 15,000 shares @ Rs 30 per share)
2.	Share Application A/c   ...Dr.		4,50,000	-
	To Share Capital A/c		-	4,50,000
	(Share Application money of 15,000 shares transferred to Share Capital Account)
3.	Share Allotment A/c   ...Dr.		7,50,000	-
	To Share Capital A/c		-	6,00,000
	To Securities Premium A/c		-	1,50,000
	(Share Allotment money on 15,000 shares @ Rs 50 per share, including Rs 10 securities premium due)
4.	Bank A/c   ...Dr.		7,42,500	-
	To Share Allotment A/c		-	7,42,500
	(Share Allotment received on 14,850 shares, and 150 shares failed to pay the money due)
5.	Share First and Final Call A/c   ...Dr.		4,50,000	-
	To Share Capital A/c		-	4,50,000
	(Share First and Final Call for 15,000 shares @ Rs 30 per share due)
6.	Bank A/c   ...Dr.		4,45,500	-
	To Share First and Final Call A/c		-	4,45,500
	(Share First and Final Call received for 14,850 shares @ Rs 30 per share, and 150 shares failed to pay the amount due)
7.	Share Capital A/c (150 × 100)   ...Dr.		15,000	-
	Share Premium A/c (150 × 10)   ...Dr.		1,500	-
	To Share Allotment A/c (150 × 50)		-	7,500
	To Share First and Final Call A/c (150 × 30)		-	4,500
	To Share Forfeiture A/c (150 × 30)		-	4,500
	(150 shares forfeited for non-payment of Share Allotment and Share First and Final Call)
8.	Bank A/c   ..Dr.		18,000	-
	To  Share Capital A/c		-	15,000
	To Securities Premium A/c		-	3,000
	(150 shares of Rs 100 each reissued @ Rs 120 to Neha)
9.	Share Forfeiture A/c   ..Dr.		4,500	-
	To Capital Reserve A/c		-	4,500
	(Balance of Share Forfeiture Account transferred to Capital Reserve Account)