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A Ltd. invited shares for 1,000 shares of 100 each payable 25 on application, 30 on allotment, 25 on first call and 20 on final call. All the shares were subscribed for.
Company did not make final call. A shareholder did not pay allotment
and call on 100 shares and his shares were forfeited. Company re- issued these shares for 60 each ₹ 80 paid up.
Pass journal entries and draw Balance Sheet.?
Company did not make final call. A shareholder did not pay allotment
and call on 100 shares and his shares were forfeited. Company re- issued these shares for 60 each ₹ 80 paid up.
Pass journal entries and draw Balance Sheet.?
Most Upvoted Answer
A Ltd. invited shares for 1,000 shares of 100 each payable 25 on appli...
Journal Entries:
- For the issue of shares:
- Bank A/c Dr. 100,000
- Share Capital A/c Cr. 100,000
- For the forfeiture of shares:
- Share Allotment A/c Dr. 30,000
- Share First Call A/c Dr. 25,000
- Share Final Call A/c Dr. 20,000
- Share Capital A/c Cr. 75,000
- Share Forfeited A/c Cr. 70,000
- For the re-issue of forfeited shares:
- Share Forfeited A/c Dr. 70,000
- Share Capital A/c Cr. 70,000
- For the receipt of money on re-issued shares:
- Bank A/c Dr. 60,000
- Share Capital A/c Cr. 60,000
Balance Sheet:
Assets:
- Share Capital (1,000 shares at 100 each) 100,000
- Less: Calls in Arrears (100 shares at 25 each) 2,500
- Less: Forfeited Shares (100 shares at 100 each) 10,000
- Total Share Capital 87,500
Liabilities:
- Share Allotment (900 shares at 30 each) 27,000
- Share First Call (900 shares at 25 each) 22,500
- Share Final Call (900 shares at 20 each) 18,000
- Total Calls in Advance 67,500
Explanation:
- The company issued 1,000 shares at 100 each, receiving 25,000 on application, 30,000 on allotment, and 25,000 on the first call.
- Since the final call was not made, the remaining 20,000 was not received.
- A shareholder failed to pay the allotment and call on 100 shares, resulting in their forfeiture.
- These forfeited shares were re-issued at 60 each with 80 paid up.
- The journal entries and balance sheet reflect the financial impact of these transactions on the company's accounts.
- For the issue of shares:
- Bank A/c Dr. 100,000
- Share Capital A/c Cr. 100,000
- For the forfeiture of shares:
- Share Allotment A/c Dr. 30,000
- Share First Call A/c Dr. 25,000
- Share Final Call A/c Dr. 20,000
- Share Capital A/c Cr. 75,000
- Share Forfeited A/c Cr. 70,000
- For the re-issue of forfeited shares:
- Share Forfeited A/c Dr. 70,000
- Share Capital A/c Cr. 70,000
- For the receipt of money on re-issued shares:
- Bank A/c Dr. 60,000
- Share Capital A/c Cr. 60,000
Balance Sheet:
Assets:
- Share Capital (1,000 shares at 100 each) 100,000
- Less: Calls in Arrears (100 shares at 25 each) 2,500
- Less: Forfeited Shares (100 shares at 100 each) 10,000
- Total Share Capital 87,500
Liabilities:
- Share Allotment (900 shares at 30 each) 27,000
- Share First Call (900 shares at 25 each) 22,500
- Share Final Call (900 shares at 20 each) 18,000
- Total Calls in Advance 67,500
Explanation:
- The company issued 1,000 shares at 100 each, receiving 25,000 on application, 30,000 on allotment, and 25,000 on the first call.
- Since the final call was not made, the remaining 20,000 was not received.
- A shareholder failed to pay the allotment and call on 100 shares, resulting in their forfeiture.
- These forfeited shares were re-issued at 60 each with 80 paid up.
- The journal entries and balance sheet reflect the financial impact of these transactions on the company's accounts.
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A Ltd. invited shares for 1,000 shares of 100 each payable 25 on application, 30 on allotment, 25 on first call and 20 on final call. All the shares were subscribed for.Company did not make final call. A shareholder did not pay allotmentand call on 100 shares and his shares were forfeited. Company re- issued these shares for 60 each ₹ 80 paid up.Pass journal entries and draw Balance Sheet.?
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A Ltd. invited shares for 1,000 shares of 100 each payable 25 on application, 30 on allotment, 25 on first call and 20 on final call. All the shares were subscribed for.Company did not make final call. A shareholder did not pay allotmentand call on 100 shares and his shares were forfeited. Company re- issued these shares for 60 each ₹ 80 paid up.Pass journal entries and draw Balance Sheet.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A Ltd. invited shares for 1,000 shares of 100 each payable 25 on application, 30 on allotment, 25 on first call and 20 on final call. All the shares were subscribed for.Company did not make final call. A shareholder did not pay allotmentand call on 100 shares and his shares were forfeited. Company re- issued these shares for 60 each ₹ 80 paid up.Pass journal entries and draw Balance Sheet.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Ltd. invited shares for 1,000 shares of 100 each payable 25 on application, 30 on allotment, 25 on first call and 20 on final call. All the shares were subscribed for.Company did not make final call. A shareholder did not pay allotmentand call on 100 shares and his shares were forfeited. Company re- issued these shares for 60 each ₹ 80 paid up.Pass journal entries and draw Balance Sheet.?.
A Ltd. invited shares for 1,000 shares of 100 each payable 25 on application, 30 on allotment, 25 on first call and 20 on final call. All the shares were subscribed for.Company did not make final call. A shareholder did not pay allotmentand call on 100 shares and his shares were forfeited. Company re- issued these shares for 60 each ₹ 80 paid up.Pass journal entries and draw Balance Sheet.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A Ltd. invited shares for 1,000 shares of 100 each payable 25 on application, 30 on allotment, 25 on first call and 20 on final call. All the shares were subscribed for.Company did not make final call. A shareholder did not pay allotmentand call on 100 shares and his shares were forfeited. Company re- issued these shares for 60 each ₹ 80 paid up.Pass journal entries and draw Balance Sheet.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Ltd. invited shares for 1,000 shares of 100 each payable 25 on application, 30 on allotment, 25 on first call and 20 on final call. All the shares were subscribed for.Company did not make final call. A shareholder did not pay allotmentand call on 100 shares and his shares were forfeited. Company re- issued these shares for 60 each ₹ 80 paid up.Pass journal entries and draw Balance Sheet.?.
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