Moneyplus Company issued for public subscription 75,000 shares of
the value of Rs 10 each at a discount of 10% payable as follows:
Rs 2 per share on application, Rs 3 per share on allotment and Rs
4 per share on call.
The company received applications for 1,50,000 shares. The
allotment was done as under:
(a) Applicants of 15,000 shares were allotted 5,000 shares.
(b) Applicants of 70,000 shares were allotted 40,000 shares.
(c) Remaining applicants were allotted 30,000 shares.
Money in excess to allotment was returned. Hari, a shareholder
who had applied for 3,500 shares out of group B failed to pay
allotment and call money. Rohan, a shareholder who was allotted
3,000 shares paid the call money along with the allotment. Rohan
also belonged to group B.
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 of shares
in the following cases:
(a) X Ltd. forfeited 20 shares of Rs 10 each, Rs 7 called up on
which the shareholder had paid application and allotment money of
Rs 5 per share. Out of these, 15 shares were re-issued to Naresh
as Rs 7 per share paid up for Rs 8 per share.
(b) Y Ltd. forfeited 90 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, 80 shares were re-issued to Sanjay as Rs 8 called up for
Rs 10 per share.
(c) Z Ltd. forfeited 300 shares of Rs 10 each issued at a
discount of Rs 1 per share for non-payment of first and final
call of Rs 3 per share. Out of these 200 shares were reissued at
Rs 3 per share fully paid up.
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