Corporate Accounting - Maharshi Dayanand University, Rohtak

36 dEiuh ys[kkadu
Share Capital Account 3,750
To Share Allotment Account 250
To Share 1st Call Account 750
To Share Second Call Account 2,000
To Share Forfeited Account 750
(Being the forfeited of 750 shares on which less than Rs. 4 had been paid)
Authorised Capital :
CAPITAL AS IT WILL APPEAR IN THE BALANCE SHEET
25,000 shares of Rs. 10 each 2,50,000
Issued and Subscribed Capital :
4,000 shares of Rs. 10 each fully paid for the purchase of Building 40,000
7,250 shares of Rs. 10 each, Rs. 5 per share called up 36,250
Less Call in arrears 1,250
Rs.
35,000
Add Shares Forfeited Account 750
Illustration 6.
Give Journal entries for the following:
(i)
(ii)
(iii)
Solution.
Rs.
35,750
75,750
The Directors forfeited 200 shares issued to A on account of non-payment of the final call of Rs. 20. These
shares of Rs. 100 each were issued to B at a premium of Rs. 10 per share.
They forfeited B’ s 100 shares of Rs. 100 each for non-payment of Ist and final call of Rs. 50 and reissued to
C for Rs. 70 per share as fully paid up.
The company allots 600 equity shares of Rs. 100 each as fully paid to the Vendors as part of purchase
consideration.
JOURNAL ENTRIES
(i) (a) Share Capital Account Dr. 20,000
To Share Final Call Account 4,000
To Share Forfeiture Account 16,000
(Being 200 shares of 100 each forfeited on account of
non-payment of final call of Rs. 20)
(b) Bank Account Dr. 22,000
To Share Capital Account 20,000
To Share Premium Account 2,000
(Being 200 forfeited shares reissued at a premium of Rs. 10 per share)