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B Limited issued 50,000 equity shares of ₹ 10 each payable as ₹ 3 per share on application, ₹
5 per share (including₹ 2 as premium) on allotment and ₹ 4 per share on call. All these shares were
subscribed. Money due on all shares was fully received except from X, holding 1000 shares who
failed to pay the allotment and call money and Y, holding 2000 shares, failed to pay the call money.
All those 3,000 shares were forfeited. Out of forfeited shares, 2,500 shares (including whole of
X's shares) were subsequently re-issued to Z as fully paid up at a discount of ₹ 2 per share.
Pass necessary journal entries in the books of B limited. Also prepare Balance Sheet and notes to
accounts of the c?
Most Upvoted Answer
B Limited issued 50,000 equity shares of ₹ 10 each payable as ₹ 3 per ...
Journal Entries:

1. On Issue of Shares:
Equity Share Capital A/c Dr. 500,000
To Equity Share Application A/c 150,000
To Equity Share Allotment A/c 250,000
To Equity Share Call A/c 200,000

2. On Forfeiture of Shares:
Share Allotment A/c Dr. 10,000
To Share Capital A/c 10,000
(Forfeiture of X's 1,000 shares)
Share Call A/c Dr. 8,000
To Share Capital A/c 8,000
(Forfeiture of Y's 2,000 shares)

3. On Re-issue of Forfeited Shares:
Bank A/c Dr. 5,000
To Share Capital A/c 5,000
(Re-issue of 2,500 shares to Z)

4. On Transfer to Capital Reserve:
Share Premium A/c Dr. 5,000
To Capital Reserve A/c 5,000
(Transfer of premium on re-issue)

Balance Sheet:
Liabilities Amount (₹) Assets Amount (₹)
Share Capital 500,000 Fixed Assets XXXXX
Share Premium 50,000 Current Assets XXXXX
Capital Reserve 5,000 Less:Current Liabilities XXXXX
Net Current Assets XXXXX
Total Assets XXXXX
Total Liabilities XXXXX

Notes to Accounts:
1. The company issued 50,000 equity shares at ₹ 10 each.
2. X failed to pay allotment and call money on 1,000 shares, which were forfeited.
3. Y failed to pay call money on 2,000 shares, which were forfeited.
4. 2,500 forfeited shares were re-issued to Z at a discount of ₹ 2 per share.
5. The premium received on re-issue was transferred to Capital Reserve.
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B Limited issued 50,000 equity shares of ₹ 10 each payable as ₹ 3 per share on application, ₹ 5 per share (including₹ 2 as premium) on allotment and ₹ 4 per share on call. All these shares were subscribed. Money due on all shares was fully received except from X, holding 1000 shares who failed to pay the allotment and call money and Y, holding 2000 shares, failed to pay the call money. All those 3,000 shares were forfeited. Out of forfeited shares, 2,500 shares (including whole of X's shares) were subsequently re-issued to Z as fully paid up at a discount of ₹ 2 per share. Pass necessary journal entries in the books of B limited. Also prepare Balance Sheet and notes to accounts of the c?
Question Description
B Limited issued 50,000 equity shares of ₹ 10 each payable as ₹ 3 per share on application, ₹ 5 per share (including₹ 2 as premium) on allotment and ₹ 4 per share on call. All these shares were subscribed. Money due on all shares was fully received except from X, holding 1000 shares who failed to pay the allotment and call money and Y, holding 2000 shares, failed to pay the call money. All those 3,000 shares were forfeited. Out of forfeited shares, 2,500 shares (including whole of X's shares) were subsequently re-issued to Z as fully paid up at a discount of ₹ 2 per share. Pass necessary journal entries in the books of B limited. Also prepare Balance Sheet and notes to accounts of the c? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about B Limited issued 50,000 equity shares of ₹ 10 each payable as ₹ 3 per share on application, ₹ 5 per share (including₹ 2 as premium) on allotment and ₹ 4 per share on call. All these shares were subscribed. Money due on all shares was fully received except from X, holding 1000 shares who failed to pay the allotment and call money and Y, holding 2000 shares, failed to pay the call money. All those 3,000 shares were forfeited. Out of forfeited shares, 2,500 shares (including whole of X's shares) were subsequently re-issued to Z as fully paid up at a discount of ₹ 2 per share. Pass necessary journal entries in the books of B limited. Also prepare Balance Sheet and notes to accounts of the c? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for B Limited issued 50,000 equity shares of ₹ 10 each payable as ₹ 3 per share on application, ₹ 5 per share (including₹ 2 as premium) on allotment and ₹ 4 per share on call. All these shares were subscribed. Money due on all shares was fully received except from X, holding 1000 shares who failed to pay the allotment and call money and Y, holding 2000 shares, failed to pay the call money. All those 3,000 shares were forfeited. Out of forfeited shares, 2,500 shares (including whole of X's shares) were subsequently re-issued to Z as fully paid up at a discount of ₹ 2 per share. Pass necessary journal entries in the books of B limited. Also prepare Balance Sheet and notes to accounts of the c?.
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