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Alpha Ltd. Issued 20,000 Equity Shares of ₹ 10 Each at Par Payable: on Application ₹ 2 per Share; on Allotment ₹ 3 per Share; on First Call ₹ 3 per Share; - Accountancy

Journal Entry

Alpha Ltd. issued 20,000 Equity Shares of  ₹ 10 each at par payable: On application ₹ 2 per share; on allotment ₹ 3 per share; on first call ₹ 3 per share; on second and final call ₹ 2 per share.
Mr. Gupta was allotted 100 shares. Pass necessary  Journal entry relating to the forfeiture of shares in each of the following alternative cases:

Case I If Mr. Gupta failed to pay the allotment money and his shares were immediately forfeited.
Case II If Mr. Gupta failed to pay allotment money and on his subsequent failure to pay the first call, his shares were forfeited.
Case III If Mr. Gupta failed to pay the first call and on his subsequent failure to pay the second and final call, his shares were forfeited
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Solution

Application

2

Allotment

3

First Call

3

Final Call

2

 

 

10

Books of Alpha Limited
Journal

Date

Particulars

L.F.

Debit Amount

(₹)

Credit

Amount

(₹)

Case I

Share Capital A/c (100×5)

Dr.

 

500

 

 

To Share Forfeiture A/c

 

 

200

 

To Share Allotment A/c

 

 

300

 

(100 shares of Rs 10 each, Rs 5 called-up, forfeited for the non-payment of allotment)

 

 

 

 

 

 

 

 

Case II

Share Capital A/c (100 × 8)

Dr.

 

800

 

 

To Share Forfeiture A/c

 

 

200

 

To Share Allotment A/c

 

 

300

    To Share First Call A/c     300

 

(100 shares of Rs 10 each, Rs 8 called-up forfeited for non-payment allotment and first-call)

 

 

 

 

 

 

 

 

Case III

Share Capital A/c

Dr.

 

1,000

 

 

To Share Forfeiture A/c

 

 

500

 

To Share First Call A/c

 

 

300

    To Share Final Call A/c     200

 

(100 shares of Rs 10 each forfeited for the non-payment Rs 5 each)

 

 

 

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APPEARS IN

TS Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 2
Chapter 1 Accounting for Share Capital
Exercise | Q 40 | Page 119
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