R.P Ltd forfeited 1,500 shares of Rahim of ₹ 10 each issued at a premium of ₹ 3 per share for non-payment of allotment and first call money. Rahim had applied for 3,000 shares. On these shares, amount was payable as follows:
On Application ₹ 3 per share
On Allotment (including premium) ₹ 5 per share
On First Call ₹ 3 per share
On Final Call Balance
Final call has not been called up, 1,000 of the forfeited shares were reissued for ₹ 8,500 as fully paid-up. Record the necessary Journal entries for the above transactions in the books of R.P Ltd. [Ans.: Capital Reserve – ₹ 3,500.]
Anurag Pathak Changed status to publish September 6, 2023
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