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Limited issued 6,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share, payable as ₹ 3 on application, ₹ 5 on allotment (including premium) and the balance in two calls of equal amount.
Applications were received for 8,00,000 shares and pro-rata allotment was made to all the applicants. The excess application money was adjusted towards allotment. Harish to whom 1600 shares were allotted failed to pay both calls and his shares were subsequently forfeited after second call. You are required to pass journal entries in the books of P Limited and prepare bank account?
Applications were received for 8,00,000 shares and pro-rata allotment was made to all the applicants. The excess application money was adjusted towards allotment. Harish to whom 1600 shares were allotted failed to pay both calls and his shares were subsequently forfeited after second call. You are required to pass journal entries in the books of P Limited and prepare bank account?
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Limited issued 6,00,000 equity shares of ₹ 10 each at a premium of ₹ 2...
Journal Entries in the Books of P Limited
To record the entire share capital transaction, the following journal entries will be made:
1. Application Money Received
Bank A/c Dr. 24,00,000
To Equity Share Application A/c 24,00,000
(Received application money for 8,00,000 shares)
2. Allotment Money Due
Equity Share Allotment A/c Dr. 30,00,000
To Equity Share Capital A/c 60,00,000
To Securities Premium A/c 12,00,000
(Allotment of 6,00,000 shares at ₹5 each and premium of ₹2)
3. Excess Application Money Adjusted
Equity Share Allotment A/c Dr. 6,00,000
To Equity Share Application A/c 6,00,000
(Excess application money adjusted in allotment)
4. Calls in Arrears for Harish's Shares
Calls in Arrears A/c Dr. 3,200
To Equity Share First Call A/c 3,200
(Harish failed to pay both calls for 1,600 shares)
5. Forfeiture of Shares
Equity Share Capital A/c Dr. 16,000
To Equity Share Forfeiture A/c 16,000
(Forfeiture of 1,600 shares)
6. Transfer of Forfeited Amount
Equity Share Forfeiture A/c Dr. 3,200
To Calls in Arrears A/c 3,200
(Adjusting forfeited shares against calls in arrears)
Bank Account
| Date | Particulars | Amount (₹) | Date | Particulars | Amount (₹) |
|-------------|----------------------|-------------|-------------|-------------------|-------------|
| DD/MM/YYYY | To Balance b/d | 0 | DD/MM/YYYY | By Equity Share Application A/c | 24,00,000 |
| DD/MM/YYYY | To Equity Share Allotment A/c | 30,00,000 | DD/MM/YYYY | By Calls in Arrears A/c | 3,200 |
| DD/MM/YYYY | To Balance c/d | 0 | DD/MM/YYYY | By Forfeited Shares A/c | 16,000 |
Conclusion
These journal entries and the bank account summarize the share capital transactions for P Limited, ensuring compliance with accounting standards and proper recording of forfeited shares.
To record the entire share capital transaction, the following journal entries will be made:
1. Application Money Received
Bank A/c Dr. 24,00,000
To Equity Share Application A/c 24,00,000
(Received application money for 8,00,000 shares)
2. Allotment Money Due
Equity Share Allotment A/c Dr. 30,00,000
To Equity Share Capital A/c 60,00,000
To Securities Premium A/c 12,00,000
(Allotment of 6,00,000 shares at ₹5 each and premium of ₹2)
3. Excess Application Money Adjusted
Equity Share Allotment A/c Dr. 6,00,000
To Equity Share Application A/c 6,00,000
(Excess application money adjusted in allotment)
4. Calls in Arrears for Harish's Shares
Calls in Arrears A/c Dr. 3,200
To Equity Share First Call A/c 3,200
(Harish failed to pay both calls for 1,600 shares)
5. Forfeiture of Shares
Equity Share Capital A/c Dr. 16,000
To Equity Share Forfeiture A/c 16,000
(Forfeiture of 1,600 shares)
6. Transfer of Forfeited Amount
Equity Share Forfeiture A/c Dr. 3,200
To Calls in Arrears A/c 3,200
(Adjusting forfeited shares against calls in arrears)
Bank Account
| Date | Particulars | Amount (₹) | Date | Particulars | Amount (₹) |
|-------------|----------------------|-------------|-------------|-------------------|-------------|
| DD/MM/YYYY | To Balance b/d | 0 | DD/MM/YYYY | By Equity Share Application A/c | 24,00,000 |
| DD/MM/YYYY | To Equity Share Allotment A/c | 30,00,000 | DD/MM/YYYY | By Calls in Arrears A/c | 3,200 |
| DD/MM/YYYY | To Balance c/d | 0 | DD/MM/YYYY | By Forfeited Shares A/c | 16,000 |
Conclusion
These journal entries and the bank account summarize the share capital transactions for P Limited, ensuring compliance with accounting standards and proper recording of forfeited shares.
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Limited issued 6,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share, payable as ₹ 3 on application, ₹ 5 on allotment (including premium) and the balance in two calls of equal amount.Applications were received for 8,00,000 shares and pro-rata allotment was made to all the applicants. The excess application money was adjusted towards allotment. Harish to whom 1600 shares were allotted failed to pay both calls and his shares were subsequently forfeited after second call. You are required to pass journal entries in the books of P Limited and prepare bank account?
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Limited issued 6,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share, payable as ₹ 3 on application, ₹ 5 on allotment (including premium) and the balance in two calls of equal amount.Applications were received for 8,00,000 shares and pro-rata allotment was made to all the applicants. The excess application money was adjusted towards allotment. Harish to whom 1600 shares were allotted failed to pay both calls and his shares were subsequently forfeited after second call. You are required to pass journal entries in the books of P Limited and prepare bank account? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Limited issued 6,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share, payable as ₹ 3 on application, ₹ 5 on allotment (including premium) and the balance in two calls of equal amount.Applications were received for 8,00,000 shares and pro-rata allotment was made to all the applicants. The excess application money was adjusted towards allotment. Harish to whom 1600 shares were allotted failed to pay both calls and his shares were subsequently forfeited after second call. You are required to pass journal entries in the books of P Limited and prepare bank account? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Limited issued 6,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share, payable as ₹ 3 on application, ₹ 5 on allotment (including premium) and the balance in two calls of equal amount.Applications were received for 8,00,000 shares and pro-rata allotment was made to all the applicants. The excess application money was adjusted towards allotment. Harish to whom 1600 shares were allotted failed to pay both calls and his shares were subsequently forfeited after second call. You are required to pass journal entries in the books of P Limited and prepare bank account?.
Limited issued 6,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share, payable as ₹ 3 on application, ₹ 5 on allotment (including premium) and the balance in two calls of equal amount.Applications were received for 8,00,000 shares and pro-rata allotment was made to all the applicants. The excess application money was adjusted towards allotment. Harish to whom 1600 shares were allotted failed to pay both calls and his shares were subsequently forfeited after second call. You are required to pass journal entries in the books of P Limited and prepare bank account? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Limited issued 6,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share, payable as ₹ 3 on application, ₹ 5 on allotment (including premium) and the balance in two calls of equal amount.Applications were received for 8,00,000 shares and pro-rata allotment was made to all the applicants. The excess application money was adjusted towards allotment. Harish to whom 1600 shares were allotted failed to pay both calls and his shares were subsequently forfeited after second call. You are required to pass journal entries in the books of P Limited and prepare bank account? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Limited issued 6,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share, payable as ₹ 3 on application, ₹ 5 on allotment (including premium) and the balance in two calls of equal amount.Applications were received for 8,00,000 shares and pro-rata allotment was made to all the applicants. The excess application money was adjusted towards allotment. Harish to whom 1600 shares were allotted failed to pay both calls and his shares were subsequently forfeited after second call. You are required to pass journal entries in the books of P Limited and prepare bank account?.
Solutions for Limited issued 6,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share, payable as ₹ 3 on application, ₹ 5 on allotment (including premium) and the balance in two calls of equal amount.Applications were received for 8,00,000 shares and pro-rata allotment was made to all the applicants. The excess application money was adjusted towards allotment. Harish to whom 1600 shares were allotted failed to pay both calls and his shares were subsequently forfeited after second call. You are required to pass journal entries in the books of P Limited and prepare bank account? in English & in Hindi are available as part of our courses for UPSC.
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ample number of questions to practice Limited issued 6,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share, payable as ₹ 3 on application, ₹ 5 on allotment (including premium) and the balance in two calls of equal amount.Applications were received for 8,00,000 shares and pro-rata allotment was made to all the applicants. The excess application money was adjusted towards allotment. Harish to whom 1600 shares were allotted failed to pay both calls and his shares were subsequently forfeited after second call. You are required to pass journal entries in the books of P Limited and prepare bank account? tests, examples and also practice UPSC tests.
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