Starplus Company issued for public subscription 1,50,000 shares
of the value of Rs 100 each at a discount of 10% payable per
share as follows:
Rs 20 on application, Rs 30 on allotment and Rs 40 on call.
The company received applications for 3,00,000 shares. The
allotment was done as under:
(a) Applicants of 30,000 shares were allotted 10,000 shares.
(b) Applicants of 1,40,000 shares were allotted 80,000 shares.
(c) Remaining applicants were allotted 60,000 shares.
After adjusting excess money in allotment, the money was
returned. Harit, a shareholder who had applied for 7,000 shares
of group (b), failed to pay allotment and call money. Roshan,
another shareholder who was allotted 6,000 shares, paid the call
money along with the allotment. Roshan also belonged to group
Pass necessary Journal entries to record the above transactions
in the books of the company. Show your working notes clearly.
Record the Journal entries for forfeiture and reissue in the
(a) X Ltd. forfeited 200 shares of Rs 100 each, Rs 70 called up,
on which the shareholders had paid application and allotment
money of Rs 50 per share. Out of these, 150 shares were re-issued
to Naresh as Rs 70 paid up for Rs 80 per share.
(b) Y Ltd. forfeited 180 shares of Rs 10 each, Rs 8 called up,
issued at a premium of Rs 2 per share to R for non-payment of
allotment money of Rs 5 per share (including premium). Out of
these, 160 shares were re-issued to Sanjay as Rs 8 called up for
Rs 10 per share fully paid up.
(c) Z Ltd. forfeited 30 shares of Rs 100 each issued at a
discount of Rs 10 per share for non-payment of first and final
call money of Rs 30 per share. Out of these, 20 shares were
reissued at Rs 30 per share fully paid up.
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