Tapsi Ltd. invited applications from the public for the issue of 55,000 Equity shares of ₹ 10 each payable as:

₹ 3 on Application,

₹ 5 on Allotment

Balance on Call

The public applied for 50,000 shares which were duly allotted by the company.

₹ 2,49,000 were received by the company on allotment and ₹ 99,400 on call.

The company forfeited those shares on which both, allotment and call money was not received.

70% of the forfeited shares were reissued at ₹ 7 per share, fully called-up.

The company paid share issue expenses of ₹ 20,000 which were completely written off at the end of the year.

The company has ₹ 15,000 in its Securities Premium Reserve Account.

You are required to pass Journal entries to record the above transactions in the books of the company.

Anurag Pathak Changed status to publish March 10, 2024
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