Kuchia Ltd has an authorized share capital of 500,000 ordinary shares of sh. 10 each. The company offered 200,000 shares at sh.12 each as follows : Payable per share Application sh. 2.00 Allotment sh. 5.00(including premium) First call sh. 3.00 Second and fall call sh. 2.00 Applications were received for 200,000 ordinary shares. All monies were fully received except for Mr. Makau who failed to pay money on his 2,000 shares for first and second call. The directors decided to forfeit the shares issued to Mr. Makau and later re-issued them to Mr. Korir for sh. 8.00 per share. Required: Journal entries to effect the transactions. Show entries in the ledger accounts.
Kuchia Ltd has an authorized share capital of 500,000 ordinary shares of
sh. 10 each. The company offered 200,000 shares at sh.12 each as follows
:
Payable per share
Application sh. 2.00
Allotment sh. 5.00(including premium)
First call sh. 3.00
Second and fall call sh. 2.00
Applications were received for 200,000 ordinary shares. All monies were fully received except for Mr. Makau who failed to pay money on his 2,000 shares for first and second call. The directors decided to forfeit the shares issued to Mr. Makau and later re-issued them to Mr. Korir for sh. 8.00 per share.
Required:
Journal entries to effect the transactions.- Show entries in the ledger accounts.
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