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L'oreal Ltd issued 40000 equity shares of Rs. 100 each payable as follows: On application Rs. 25, On Allotment Rs. 25, On First Call Rs 30, On Second Call Rs. 20. The company received applications for 30000 shares All applications were accepted and shares were allotted The directors mode both the calls One shareholder Miss Lara failed to pay the final call on her 500 shares. Her shares were forfeited and reissued to Miss Neha at Rs.70 per share. Pass Journal entries?
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L'oreal Ltd issued 40000 equity shares of Rs. 100 each payable as foll...
Journal Entries for the issue and forfeiture of shares:

1. Journal entry for the receipt of application money:
- Debit: Bank Account (30000 shares x Rs. 25)
- Credit: Share Application Account (30000 shares x Rs. 25)

2. Journal entry for the allotment of shares:
- Debit: Share Application Account (30000 shares x Rs. 25)
- Credit: Share Capital Account (30000 shares x Rs. 25)

3. Journal entry for the receipt of allotment money:
- Debit: Bank Account (30000 shares x Rs. 25)
- Credit: Share Allotment Account (30000 shares x Rs. 25)

4. Journal entry for the first call:
- Debit: Share Allotment Account (30000 shares x Rs. 30)
- Credit: Share First Call Account (30000 shares x Rs. 30)

5. Journal entry for the receipt of first call money:
- Debit: Bank Account (30000 shares x Rs. 30)
- Credit: Share First Call Account (30000 shares x Rs. 30)

6. Journal entry for the second call:
- Debit: Share Allotment Account (30000 shares x Rs. 20)
- Credit: Share Second Call Account (30000 shares x Rs. 20)

7. Journal entry for the receipt of second call money:
- Debit: Bank Account (30000 shares x Rs. 20)
- Credit: Share Second Call Account (30000 shares x Rs. 20)

8. Journal entry for the forfeiture of shares:
- Debit: Share Capital Account (500 shares x Rs. 100)
- Debit: Share First Call Account (500 shares x Rs. 30)
- Debit: Share Second Call Account (500 shares x Rs. 20)
- Credit: Share Forfeiture Account (500 shares x Rs. 150)

9. Journal entry for the reissue of forfeited shares:
- Debit: Share Forfeiture Account (500 shares x Rs. 150)
- Credit: Share Capital Account (500 shares x Rs. 100)
- Credit: Share First Call Account (500 shares x Rs. 30)
- Credit: Share Second Call Account (500 shares x Rs. 20)
- Credit: Share Premium Account (500 shares x (Rs. Reissue price - Rs. 100))

10. Journal entry for the receipt of reissued share money:
- Debit: Bank Account (500 shares x Rs. Reissue price)
- Credit: Share Capital Account (500 shares x Rs. 100)
- Credit: Share First Call Account (500 shares x Rs. 30)
- Credit: Share Second Call Account (500 shares x Rs. 20)
- Credit: Share Premium Account (500 shares x (Rs. Reissue price - Rs. 100))

Note: Replace "Rs." with the respective currency symbol.
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L'oreal Ltd issued 40000 equity shares of Rs. 100 each payable as follows: On application Rs. 25, On Allotment Rs. 25, On First Call Rs 30, On Second Call Rs. 20. The company received applications for 30000 shares All applications were accepted and shares were allotted The directors mode both the calls One shareholder Miss Lara failed to pay the final call on her 500 shares. Her shares were forfeited and reissued to Miss Neha at Rs.70 per share. Pass Journal entries?
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L'oreal Ltd issued 40000 equity shares of Rs. 100 each payable as follows: On application Rs. 25, On Allotment Rs. 25, On First Call Rs 30, On Second Call Rs. 20. The company received applications for 30000 shares All applications were accepted and shares were allotted The directors mode both the calls One shareholder Miss Lara failed to pay the final call on her 500 shares. Her shares were forfeited and reissued to Miss Neha at Rs.70 per share. Pass Journal entries? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about L'oreal Ltd issued 40000 equity shares of Rs. 100 each payable as follows: On application Rs. 25, On Allotment Rs. 25, On First Call Rs 30, On Second Call Rs. 20. The company received applications for 30000 shares All applications were accepted and shares were allotted The directors mode both the calls One shareholder Miss Lara failed to pay the final call on her 500 shares. Her shares were forfeited and reissued to Miss Neha at Rs.70 per share. Pass Journal entries? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for L'oreal Ltd issued 40000 equity shares of Rs. 100 each payable as follows: On application Rs. 25, On Allotment Rs. 25, On First Call Rs 30, On Second Call Rs. 20. The company received applications for 30000 shares All applications were accepted and shares were allotted The directors mode both the calls One shareholder Miss Lara failed to pay the final call on her 500 shares. Her shares were forfeited and reissued to Miss Neha at Rs.70 per share. Pass Journal entries?.
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