Advertisement Remove all ads

Ankit Ltd. Issued 20,000 Equity Shares of 10 Each at a Premium of ₹ 2 per Share, Payable As: - Accountancy

Journal Entry

Ankit Ltd. issued 20,000 equity shares of 10 each at a premium of ₹ 2 per share, payable as:

On Application : ₹ 3
On Allotment : ₹ 5 (including premium)
On First Call : ₹ 2
On Second and Final Call : ₹ 2

Vijay was allotted 500 shares. Pass the necessary Journal entries relating to the forfeiture of shares in following cases.

Case I Vijay did not pay allotment money and his shares were immediately forfeited.
Case II Vijay did not pay allotment and first call, his shares were forfeited after first call.
Case III Vijay failed to pay first call and his shares were forfeited immediately.
Case IV Vijay failed to pay both the calls and his shares were forfeited.
Advertisement Remove all ads

Solution

Case I:

In the books of Ankit Ltd.
Journal

Date

Particulars

 

L.F.

Debit Amount (₹)

Credit Amount (₹)

 

Share Capital A/c (500 × 6)

Dr.

 

3,000

 

 

Securities Premium Reserve A/c (500 × 2)

Dr.

 

1,000

 

 

  To Share Forfeiture A/c (500 × 3)

 

 

 

1,500

 

  To Share Allotment A/c (500 × 5)

 

 

 

2,500

 

(Being 500 shares forfeited for non-payment of allotment money)        

Case II:

In the books of Ankit Ltd.
Journal

 

Date

Particulars

 

L.F.

Debit Amount (₹)

Credit Amount (₹)

 

Share Capital A/c (500 × 8)

Dr.

 

4,000

 

 

Securities Premium Reserve A/c (500 × 2)

Dr.

 

1,000

 

 

  To Share Forfeiture A/c (500 × 3)

 

 

 

1,500

 

  To Share Allotment A/c (500 × 5)

 

 

 

2,500

 

  To Share First Call A/c (500 × 2)

 

 

 

1,000

 

(Being 500 shares forfeited for non-payment of allotment and first call)

 

 

 

 

Case III:

In the books of Ankit Ltd.
Journal

Date

Particulars

 

L.F.

Debit Amount
(₹)

Credit Amount
(₹)

 

Share Capital A/c (500 × 8)

Dr.

 

4,000

 

 

  To Share Forfeiture A/c (500 × 6)

 

 

 

3,000

 

  To Share First Call A/c (500 × 2)

 

 

 

1,000

 

(Being 500 shares forfeited for non-payment of first call)

 

 

 

 

Case IV:

In the books of Ankit Ltd.
Journal

Date

Particulars

 

L.F.

Debit
Amount (₹)

Credit
Amount (₹)

 

Share Capital A/c (500 × 10)

Dr.

 

5,000

 

 

  To Share Forfeiture A/c (500 × 6)

 

 

 

3,000

 

  To Share First Call A/c (500 × 2)

 

 

 

1,000

 

  To Share Second and Final Call (500 × 2)

 

 

 

1,000

 

(Being 500 shares forfeited for non-payment of first and second call)

 

 

 

 

  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

TS Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 2
Chapter 1 Accounting for Share Capital
Exercise | Q 41 | Page 119
Advertisement Remove all ads

Video TutorialsVIEW ALL [1]

Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×