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X ltd. issued 20000 equity share of 10 each at premium of ₹20 per share payable as follows ;on application ₹50 ;on allotment ₹50 {including premium} ; on final call ₹20 . Application were received for 24000 shares .letters of regret were issued to application for 4000 shares and shares were allotted to all the other application .Mr.A, THE HOLDER OF 150 SHARES ,FAILED TO PAY THE allotment and call money the shares were forfeited . Show the journal Entries and Cash book in books B ltd.?
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X ltd. issued 20000 equity share of 10 each at premium of ₹20 per shar...
Journal Entries and Cash Book for X Ltd.

Journal Entries:

1. To record receipt of application money:
Bank A/c Dr. 1200000
To Share Application A/c 1200000

2. To record allotment of shares:
Share Application A/c Dr. 1000000
Share Allotment A/c Dr. 2000000
Share Premium A/c Dr. 400000
To Equity Share Capital A/c 2000000
To Share Premium A/c 2000000

3. To record forfeiture of shares:
Share Forfeiture A/c Dr. 1500
Share Allotment A/c Dr. 7500
To Equity Share Capital A/c 1500
To Share Forfeiture A/c 7500

Cash Book:

Receipts:
Bank A/c Dr. 1200000
Share Application A/c Dr. 1000000
Share Allotment A/c Dr. 2000000
Share Premium A/c Dr. 400000

Total Receipts: 4600000

Payments:
Share Allotment A/c Dr. 2000000
Share Forfeiture A/c Dr. 7500
Bank A/c Dr. 2592500

Total Payments: 4600000

Explanation:

1. The company issued 20000 equity shares of 10 each at a premium of ₹20 per share. The total amount of the shares is ₹4,00,000. The company received applications for 24000 shares and issued letters of regret for 4000 shares.

2. The company allotted shares to all the other applicants except Mr. A who failed to pay the allotment and call money. As a result, his shares were forfeited.

3. The journal entries are made to record the receipt of application money, allotment of shares, and forfeiture of shares.

4. The cash book is prepared to record the receipts and payments made by the company.

5. The total amount of receipts and payments in the cash book should be equal.

6. The Share Forfeiture A/c is credited with the value of the forfeited shares, and the Equity Share Capital A/c is debited with the nominal value of the forfeited shares.
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X ltd. issued 20000 equity share of 10 each at premium of ₹20 per share payable as follows ;on application ₹50 ;on allotment ₹50 {including premium} ; on final call ₹20 . Application were received for 24000 shares .letters of regret were issued to application for 4000 shares and shares were allotted to all the other application .Mr.A, THE HOLDER OF 150 SHARES ,FAILED TO PAY THE allotment and call money the shares were forfeited . Show the journal Entries and Cash book in books B ltd.?
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X ltd. issued 20000 equity share of 10 each at premium of ₹20 per share payable as follows ;on application ₹50 ;on allotment ₹50 {including premium} ; on final call ₹20 . Application were received for 24000 shares .letters of regret were issued to application for 4000 shares and shares were allotted to all the other application .Mr.A, THE HOLDER OF 150 SHARES ,FAILED TO PAY THE allotment and call money the shares were forfeited . Show the journal Entries and Cash book in books B ltd.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about X ltd. issued 20000 equity share of 10 each at premium of ₹20 per share payable as follows ;on application ₹50 ;on allotment ₹50 {including premium} ; on final call ₹20 . Application were received for 24000 shares .letters of regret were issued to application for 4000 shares and shares were allotted to all the other application .Mr.A, THE HOLDER OF 150 SHARES ,FAILED TO PAY THE allotment and call money the shares were forfeited . Show the journal Entries and Cash book in books B ltd.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X ltd. issued 20000 equity share of 10 each at premium of ₹20 per share payable as follows ;on application ₹50 ;on allotment ₹50 {including premium} ; on final call ₹20 . Application were received for 24000 shares .letters of regret were issued to application for 4000 shares and shares were allotted to all the other application .Mr.A, THE HOLDER OF 150 SHARES ,FAILED TO PAY THE allotment and call money the shares were forfeited . Show the journal Entries and Cash book in books B ltd.?.
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