Abhipra Ltd. invited applications for issuing 1,00,000 equity shares of ₹ 10 each. The shares were issued at a premium of ₹ 20 per share. The amount was payable as follows:
On Application ₹ 14 per share (including premium of ₹ 10),
On Allotment ₹ 8 per share (including premium of ₹ 5)
On First and Final Call ₹ 8 per share (including premium of ₹ 5)
Applications for 90,000 shares were received. Paresh, a shareholder holding 5,000 shares, did not pay the allotment money and call. While Dharam, holder of 3,000 shares, did not pay the call. Shares of Paresh and Dharam were forfeited. Of the forfeited shares, 50,000 shares including 3,000 shares of Paresh and 2,000 shares of Dharam were reissued to Parul at ₹ 8 per share as fully paid-up. Pass necessary Journal entries for the above transactions in the books of Abhipra Ltd. [Ans.: Capital Reserve – ₹ 16,000.]
Anurag Pathak Changed status to publish September 12, 2023
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