Question

Denspar Ltd. invited applications for issuing 2,00,000 equity shares of ₹10 each at a premium of ₹20 per share. The amount was payable as follows:

On Application	₹2 per share
On Allotment	₹13 per share (including ₹10 premium)
On First Call	₹7 per share (including ₹5 premium)
On Final Call	₹8 per share (including ₹5 premium)

Applications for 1,80,000 shares were received. Shares were allotted to all the applicants. Yogesh, a shareholder holding 5,000 shares paid his entire share money along with the allotment money. Vishesh, a holder of 7,000 shares, failed to pay the allotment money. Afterwards the first call was made. Vishesh paid the allotment money along with the first call money. Samyesh, holding 2,000 shares did not pay the final call. Samyesh's shares were forfe ited immediately after the final call. Out of the forfeited shares, 1,500 shares were reissued at ₹8 per share fully paid up.

Pass the necessary journal entries for the above transactions in the books of Denspar Ltd.

Answer 1

Journal entries I the books of Denspar Ltd.
Date	Particulars	L.F.	DEbit (₹)	Credit (₹)
1	Bank A/c		3,60,000
	To Share Application A/c			3,60,000
	(Being application money received on 1,80,000 shares @ ₹2)
2.	Share Application A/c		3,60,000
	To Share Capital A/c			3,60,000
	(Being application money transferred to Share Capital)
3.	Share Allotment A/c		23,40,000
	To Share Capital A/c (₹3 × 1,80,000)			5,40,000
	To Securities Premium A/c (₹10 × 1,80,000)			18,00,000
	(Being allotment due on 1,80,000 shares @ ₹13 including ₹10 premium)
4.	Bank A/c		22,75,000
	To Share Allotment A/c			22,75,000
	(Being allotment money received; Vishesh unpaid on 7,000 shares, Yogesh paid full in advance)
5.	Share First Call A/c		12,60,000
	To Share Capital A/c (₹2 × 1,80,000)			3,60,000
	To Securities Premium A/c (₹5 × 1,80,000)			9,00,000
	(Being first call due on 1,80,000 shares @ ₹7 including ₹5 premium)
6.	Bank A/c		12,60,000
	To Share First Call A/c			12,60,000
	(Being first call received from all including Vishesh, who paid arrears)
7.	Share Final Call A/c		14,40,000
	To Share Capital A/c (₹3 × 1,80,000)			5,40,000
	To Securities Premium A/c (₹5 × 1,80,000)			9,00,000
	(Being final call due on 1,80,000 shares @ ₹8 including ₹5 premium)
8.	Bank A/c		14,24,000
	To Share Final Call A/c			14,24,000
	(Being final call received except on 2,000 shares held by Samyesh)
9.	Share Capital A/c Dr. (2,000 × ₹10)		20,000
	To Share Final Call A/c (2,000 × ₹3)			6,000
	To Share Forfeiture A/c (2,000 × ₹7)			14,000
	(Being 2,000 shares forfeited for non-payment of final call; ₹7 received earlier)
10.	Bank A/c (1,500 × ₹8)		12,000
	Share Forfeiture A/c		3,000
	To Share Capital A/c (1,500 × ₹10)			15,000
	(Being 1,500 forfeited shares reissued at ₹8 fully paid up)
11.	Share Forfeiture A/c		7,500
	To Capital Reserve A/c			7,500
	(Being profit on reissue of forfeited shares transferred to capital reserve)