X Ltd. issued for public subscription 20,000 shares of Rs. 10 each at a premium of Rs. 2 per share payable as under: Rs. 2 per share on application; Rs. 5 per share on allotment (including premium) Rs. 2 per share on first call Rs. 3 per share on final call. Applications for 30,000 shares were received. Allotment was made pro-rata to the applicants for 24,000 shares, the remaining applications being rejected. Money over paid was used towards allotment. 'Y' to whom 800 shares were allotted failed to pay the allotment money, 1st and 2nd calls and 'Z' to whom 1,000 shares were allotted failed to pay the last two calls. These shares were subsequently forfeited after the 2nd call was made. All these forfeited shares were reissued to 'W' as fully paid at Rs. 8 per share. Give journal entries to record the above transactions.
5 kaha se aaya
X Ltd. issued for public subscription 20,000 shares of Rs. 10 each at a premium of
Rs. 2 per share payable as under:
Rs. 2 per share on application;
Rs. 5 per share on allotment (including premium)
Rs. 2 per share on first call
Rs. 3 per share on final call.
Applications for 30,000 shares were received. Allotment was made pro-rata to the applicants for 24,000 shares, the remaining applications being rejected. Money over paid was used towards allotment.
'Y' to whom 800 shares were allotted failed to pay the allotment money, 1st and 2nd calls and 'Z' to whom 1,000 shares were allotted failed to pay the last two calls. These shares were subsequently forfeited after the 2nd call was made. All these
forfeited shares were reissued to 'W' as fully paid at Rs. 8 per share.
Give journal entries to record the above transactions.
Thanks
Thank you...well explained
How you are getting forfeiture money?