Question

Naman Ltd issued 20,000 shares of Rs 100 each, payable Rs 25 on application, Rs 30 on allotment , Rs 25 on first call and The balance on final call. All money duly received except Anubha, who holding 200 shares did not pay allotment and calls money and Kumkum, who holding 100 shares did not pay both the calls. The directors forfeited shares of Anubha and kumkum. Give journal entries.

Answer 1

Books of Naman Ltd

Date	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c		Dr.		5,00,000
		To Share Application A/c				5,00,000
	(Shares Application money received for 20,000 shares @ Rs 25 each)
	Share Application A/c		Dr.		5,00,000
		To Share Capital				5,00,000
	(Share Application money of 20,000 shares @ Rs 25 each transferred to Share Capital Account)
	Share Allotment A/c		Dr.		6,00,000
		To Share Capital A/c				6,00,000
	(Share Allotment due on 20,000 shares @ Rs 30 each)
	Bank A/c		Dr.		5,94,000
		To Share Allotment A/c				5,94,000
	(Allotment money received for 19,800 shares @ Rs 30 per share)
	Share First Call A/c		Dr.		5,00,000
		To Share Capital A/c				5,00,000
	(Share First Call money due on 20,000 @ Rs 25 per share)
	Bank A/c		Dr.		4,92,500
		To Share First Call A/c				4,92,500
	(Share First Call received @ Rs 25 per share for 19,700 shares)
	Share Final Call A/c		Dr.		4,00,000
		To Share Capital A/c				4,00,000
	(Share Final Call money due on 20,000 shares @ 20 per share)
	Bank A/c		Dr.		3,94,000
		To Share final call A/c				3,94,000
	(Share Final Call received @ Rs 20 per Share  for 19,700 shares and 300 shares failed to pay the call)
	Share Capital A/c		Dr.		30,000
		To Share Forfeiture A/c (200×25+100×55)				10,500
		To Share Allotment (200×30)				6,000
		To Share First Call A/c (300×25)				7,500
		To Share Final Call A/c (300×20)				6,000
	(300 Shares forfeited)

Alternatively this question can be solved by debiting Calls in Arrears Account.

Books of Naman Ltd

Date	Particulars				L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c			Dr.		5,00,000
		To Share Application A/c					5,00,000
	(Share Application money received on application for 20,000 shares @ Rs 25 per share)
	Share Application A/c			Dr.		5,00,000
		To Share Capital A/c					5,00,000
	(Share Application money for 20,000 shares @ Rs 25 per share transferred to Share Capital Account)
	Share Allotment A/c			Dr.		6,00,000
		To Share Capital A/c					6,00,000
	(Share Allotment money due on 20,000 shares @ Rs 30 per share)
	Bank A/c			Dr.		5,94,000
	Calls in Arrears A/c			Dr.		6,000
		To Share Allotment A/c					6,00,000
	(Allotment money received for 19,800 shares @ Rs 30 per share and 200 shares failed to pay the Allotment)
	Share First Call A/c			Dr.		5,00,000
		To Share Capital A/c					5,00,000
	(Share First Call money due on 20,000 shares @ Rs 25 per share)
	Bank A/c			Dr.		4,92,500
	Calls in Arrears A/c			Dr.		7,500
		To Share First Call A/c					5,00,000
	(Share First Call money for 19,700 shares @ Rs 25 each received except 300 shares)
	Share Final Call A/c			Dr.		4,00,000
		To Share Capital A/c					4,00,000
	(Share Final Call money due on 20,000 shares @ Rs 20 per share)
	Bank A/c			Dr.		3,94,000
	Calls in Arreras A/c			Dr.		6,000
		To Share final call A/c					4,00,000
	(Share Final Call money received for 19,700 shares @ Rs 20 per share except 300 shares)
	Share Capital A/c			Dr.		30,000
		To Share Forfeiture A/c (200×25+100×55)					10,500
		To Calls in Arrears A/c					19,500
	(300 Shares forfeited on account failed to pay the money due)

Working Note:

1. Forfeited Amount

Amount on application Amount on allotment	(300 shares @ Rs 25 each) (100 Shares @ Rs 30 each)	= =	7,500   3,000
				10,500