ILLUSTRATION 70. KS Ltd. invited applications for issuing 1,60,000 equity shares of 10 each at a premium of 76 per On Application On Allotment On First and Final Call Applications for 3,20,000 shares were received. Applications for 80,000 shares were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Jain holding 800 shares, failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards the final call was made. Gupta who had applied for 1,200 shares failed to pay the final call. These shares were also forfeited. Out of the forfeited shares 1,000 shares were re-issued at 78 per share fully paid up. The re-issued shares included all the forfeited shares of Jain. share. The amount was payable as follows : 74 per share (including premium 1 per share) 76 per share (including premium 73 per share) Balance. - Assuming that the Company maintains Calls in Arrears Account, pass necessary Journal entries for the above transactions in the books of KS Ltd. (C.B.S.E. 2016, Delhi)

ILLUSTRATION 70. KS Ltd. invited applications for issuing 1,60,000 equity shares of 10 each at a premium of 76 per On Application On Allotment On First and Final Call Applications for 3,20,000 shares were received. Applications for 80,000 shares were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Jain holding 800 shares, failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards the final call was made. Gupta who had applied for 1,200 shares failed to pay the final call. These shares were also forfeited. Out of the forfeited shares 1,000 shares were re-issued at 78 per share fully paid up. The re-issued shares included all the forfeited shares of Jain. share. The amount was payable as follows : 74 per share (including premium 1 per share) 76 per share (including premium 73 per share) Balance. - Assuming that the Company maintains Calls in Arrears Account, pass necessary Journal entries for the above transactions in the books of KS Ltd. (C.B.S.E. 2016, Delhi)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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