Sukanya 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 ws payable as follows:
On Application and Allotment ₹ 14 per share (including premium of ₹ 10)
On First Call ₹ 8 per share (including premium of ₹ 5)
On Final Call ₹ 8 per share (including premium of ₹ 5)
Applications for 96,000 shares were received. Rohit, a shareholder holding 7,000 shares, failed to pay both the calls and Namit, a holder of 5,000 shares, did not pay the final call. Shares of Rohit and Namit were forfeited. Of the forfeited shares, 8,000 shares including all the shares of Rohit were reissued to Reena at ₹ 8 per share fully paid-up. Pass necessary Journal entries for the above transactions in the books of Sukanya Ltd. [Ans.: Capital Reserve – ₹ 19,000.]
Anurag Pathak Changed status to publish September 10, 2023