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Dr. 9,94,000 9,94,000 Dr. 18,000 Bank A/C To Equity Share Allotment A/c (Allotment money received) Equity Share Capital A/C To Share Forfeiture A/C To Equity
Dr. 9,94,000 9,94,000 Dr. 18,000 Bank A/C To Equity Share Allotment A/c (Allotment money received) Equity Share Capital A/C To Share Forfeiture A/C To Equity Share Allotment A/c (1,800 equity shares forfeited for non-payment of allotment money) Bank A/C Share Forfeiture A/C To Equity Share Capital A/C 12,000 6,000 Dr. Dr. 15,000 3,000 18,000 951 Dr. 9,000 (Re issue of forfeited shares) Share Forfeiture A/C To Capital Reserve A/C (Transfer of balance of share forfeiture a/c to capital reserve) 9,000 (A) 34,800 (B) Defaulting shareholder must have applied for (4,00,000 + 3,00,000) x 1,800 = 2,400 shares Excess amount received from him on application = 2,400 shares - 1,800 shares = 600 shares x 8 = Amount due from defaulting shareholder on allotment = Less: Excess received from him on application = Amount not paid on allotment Total amount due on allotment: 3,00,000 shares x6 = Less : Excess received on application Less : Not received from defaulting shareholder 10,800 4,800 6,000 (C) 18,00,000 8,00,000 10,00,000 6,000 9,94,000 Net Amount received on allotment in cash Q. 68. X Ltd. invited applications for issuing 75,000 equity shares of 10 each at a premium of 25 per share. The amount was payable as follows: On application and allotment - 39 per share (including premium) On first and final call - the balance amount. Applications for 3,00,000 shares were received. Applications for 2,00,000 shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The first and final call was made. The amount was duly received except on shares applied by Ravi. His shares were forfeited. The forfeited shares were re-issued at a discount of 34 per share. Excess application and allotment money can be utilised for calls. Pass necessary journal entries for the above transactions in the books of X Ltd
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