Question

Simon Ltd issued 50,000 equity shares of ₹ 10 each at par payable on-application ₹ 1 per share, on allotment ₹ 5 per share, on first call ₹ 2 per share, and on second and final call ₹ 2 per share. The issue was fully subscribed and all the amounts were duly received with exception of 2,000 shares held by chezhian, who failed to pay the second and final call. His shares were forfeited and reissued to Elango at ₹ 8 per share. Journalise the above transactions?

Answer 1

Date	Particulars	L.F.	Debit Rs.	Credit Rs.
(1)	Bank A/c (50,000 × Rs. 1)  Dr.   To Equity share application A/c [Application money received]		50,000	50,000
(2)	Equity share application A/c  Dr.    To Equity share capital A/c [Application money transferred]		50,000	50,000
(3)	Equity Share Allotment A/c (50,000 × Rs.5)   Dr.   To Equity share capital A/c [Allotment money due]		250,000	250,000
(4)	Bank A/c   Dr.    To Equity share allotment A/c [Allotment money share received]		250,000	250,000
(5)	Equity share I & final call A/c (50,000 × Rs. 2) Dr.   To Equity share capital A/c [I call money due]		1,00,000	1,00,000
(6)	Bank A/c   Dr.   To Equity share I call A/c [I Call money received]		1,00,000	1,00,000
(7)	Equity Share Il & final call A/c (50,000 × Rs. 2)  Dr.   To Equity share capital A/c [II & final call money due)		1,00,000	1,00,000
(8)	Bank A/c (48,000 x Rs. 2)    To Equity Share II & final call A/c [share II & final call money received with the exception on 2,000 shares]		96,000	96,000
(9)	Share Capital A/c (2,000 x Rs.10)  Dr.   To Equity share II & final call A/c (2,000 x Rs. 2)   To forfeited shares A/c (2,000 x Rs.8) [Forfeiture of shares made for non payment of final call money]		20,000	4,000 16,000
(10)	Bank A/c (2,000 x Rs.8)  Dr. Forfeited shares (2,000 x Rs.2)    To Equity share Capital A/c [reissue of forfeited shares @ Rs.8/share]		16,000 4,000	20,000
(11)	Forfeited shares A/c   To Capital Reserve A/c [Profit on reissue transferred]		12,000	12,000