Question

Bandekar Industries Co. Ltd. Issued 60,000 equity shares of Rs. 100 each, payable as follows :
On application                        - Rs. 20
On allotment                           - Rs. 30
On First Call                             - Rs. 25
On Second call and Final Call - Rs. 25
The company received applications for 48,000 equity shares. All the applications were accepted and shares alloted. The company made both the calls.
One shareholder Mr. Ramesh holding 1,600 shares failed to pay the final call. His shares were forfeited.
Pass Journal entries in the books of Bandekar Industries Co. Ltd.

Answer 1

Issue of shares
                     In the books of Bandekar Industries Co. Ltd. 

Date	Particulars		L.F.	Amount	Amount
1.	Bank A/c	Dr.		9,60,000
	To Share Application A/c				9,60,000
	(Being application money @ 20 received on 48,000 shares.)
2.	Share Application A/c	Dr.		9,60,000
	To Share Capital A/c				9,60,000
	(Being application money transferred to share capital)
3.	Share Allotment A/c	Dr.		14,40,000
	To Share Capital A/c				14,40,000
	(Being allotment money @ Rs 30 due on 48,000 shares)
4.	Bank A/c	Dr.		14,40,000
	To Share Allotment A/c				14,40,000
	(Being allotment money received.)
5.	Share First A/c	Dr		12,00,000
	To Bank A/c				12,00,000
	(Being first call money @ Rs. 25 due on 48,000 shares)
6.	Bank A/c	Dr.		12,00,000
	To Share First Call A/c				12,00,000
	( Being first call money received.)
7.	Share Second and Final Call A/c	Dr.		12,00,000
	To Share Capital A/c				12,00,000
	(Being Second and final call money @ Rs. 25 due on 48,000 shares.)
8.	Bank A/c	Dr.		11,60,000
	To Share Second and Final Call A/c				11,60,000
	(Being Second and final call money received on only on 46,400 shares)
9.	Share Capital A/c	Dr		1,60,000
	To Share Forfeiture A/c				1,20,000
	To Share Second and Final Call A/c				40,000
	(Being 1,600 shares forfeited.)