Karnataka Pharma Ltd issued 1,000 equity shares of Rs.100 each at 5% discount. The amount was payable as Rs.20 per share on application, Rs.20 per share on allotment (Discount is to be adjusted) , Rs.25 per share on first call and Rs.30 per share on final call. The issue was fully subscribed. All the calls were made and money was received on all calls except the final call on 100 shares held by Mr.X. His shares were forfeited and reissued at Rs.90 per share as fully paid. Give journal entries for forfeiture and reissue in the books of the company.
Karnataka Pharma Ltd issued 1,000 equity shares of Rs.100 each at 5% discount. The amount was payable as Rs.20 per share on application, Rs.20 per share on allotment (Discount is to be adjusted) , Rs.25 per share on first call and Rs.30 per share on final call. The issue was fully subscribed. All the calls were made and money was received on all calls except the final call on 100 shares held by Mr.X. His shares were forfeited and reissued at Rs.90 per share as fully paid. Give journal entries for forfeiture and reissue in the books of the company.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Karnataka Pharma Ltd issued 1,000 equity shares of Rs.100 each at 5% discount. The amount was payable as Rs.20 per share on application, Rs.20 per share on allotment (Discount is to be adjusted) , Rs.25 per share on first call and Rs.30 per share on final call.
The issue was fully subscribed. All the calls were made and money was received on all calls except the final call on 100 shares held by Mr.X. His shares were forfeited and reissued at Rs.90 per share as fully paid.
Give
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education