Accounting

QUESTION Pass Journal Entries in the following circumstances: (i) A Limited company with subscribed capital of 5,00,000 consisting of 50,000 Equity shares of * 10 each; called up capital 7.50 per share. A bonus of 1,25,000 declared out of General Reserve to be applied in making the existing shares fully paid up. (ii) A Limited company having fully paid up capital of 50,00,000 consisting of Equity shares of 10 each, had General Reserve of 9,00,000. It was resolved to capitalize 5,00,000 out of General Reserve by issuing 50,000 fully paid bonus shares of * 10 each, each shareholder to get one such share for every ten shares held by him in the company