Slow & Steady Ltd. invited applications for 10,000 Equity Shares of ₹ 10 each for public subscriptions. The amount of these shares was payable as:

On application ₹ 1 per share, on allotment ₹ 2 per share, on first call ₹ 3 per share and on second and final call ₹ 4 per share.

All sums payable on application, allotment and calls were duly received with the following exceptions.

(i) A, who held 200 shares, failed to pay the money on allotment and calls.

(ii) B, to whom 150 shares were allotted, failed to pay the money on first call and final call.

(iii) C, who held 50 shares, did not pay the amount of second and final call.

The shares of A, B and C were forfeited and were subsequently reissued for cash as fully paid-up at a discount of 5%.

Pass necessary Journal entries to record these transactions in the books of the company.

[Ans.: Capital Reserve – ₹ 750.]

Anurag Pathak Changed status to publish September 7, 2023
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