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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Jain Ltd. invited applications for issuing 1,12,000 equity shares of ₹10 each at par. The amount per share was payable as follows: on Application ₹1, on Allotment ₹2, on First Call ₹3, on Second and Final Call ₹4. Applications for 1,00,000 shares were received and shares were fully allotted to all applicants. Ramesh failed to pay his allotment money, which was ₹2,000; his shares were forfeited immediately. Suresh did not pay the first call on 500 shares applied by him; his shares were forfeited after the first call. The forfeited shares of Ramesh and Suresh were reissued at ₹9 per share, fully paid-up. Afterwards, the second and final call was made and duly received. Pass the necessary Journal entries in the books of Jain Ltd. (CBSE 2019)
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c (1,00,000 × ₹1) Dr. | 1,00,000 | |||
| To Equity Share Application A/c | 1,00,000 | |||
| (Application money received on 1,00,000 shares) | ||||
| Equity Share Application A/c Dr. | 1,00,000 | |||
| To Equity Share Capital A/c | 1,00,000 | |||
| (Application money transferred to Share Capital) | ||||
| Equity Share Allotment A/c (1,00,000 × ₹2) Dr. | 2,00,000 | |||
| To Equity Share Capital A/c | 2,00,000 | |||
| (Allotment money due) | ||||
| Bank A/c (2,00,000 − 2,000) Dr. | 1,98,000 | |||
| To Equity Share Allotment A/c | 1,98,000 | |||
| (Allotment money received except on Ramesh’s 1,000 shares) | ||||
| Equity Share Capital A/c (1,000 × ₹3) Dr. | 3,000 | |||
| To Equity Share Allotment A/c (1,000 × ₹2) | 2,000 | |||
| To Share Forfeiture A/c (1,000 × ₹1) | 1,000 | |||
| (1,000 shares of Ramesh forfeited for non-payment of allotment) | ||||
| Equity Share First Call A/c (99,000 × ₹3) Dr. | 2,97,000 | |||
| To Equity Share Capital A/c | 2,97,000 | |||
| (First call due on 99,000 shares) | ||||
| Bank A/c (98,500 × ₹3) Dr. | 2,95,500 | |||
| To Equity Share First Call A/c | 2,95,500 | |||
| (First call received except on Suresh’s 500 shares) | ||||
| Equity Share Capital A/c (500 × ₹6) Dr. | 3,000 | |||
| To Equity Share First Call A/c (500 × ₹3) | 1,500 | |||
| To Share Forfeiture A/c (500 × ₹3) | 1,500 | |||
| (500 shares of Suresh forfeited for non-payment of the first call) | ||||
| Bank A/c (1,500 × ₹9) Dr. | 13,500 | |||
| Share Forfeiture A/c (1,500 × ₹1) Dr. | 1,500 | |||
| To Equity Share Capital A/c (1,500 × ₹10) | 15,000 | |||
| (1,000 shares of Ramesh and 500 shares of Suresh reissued at ₹9 per share, fully paid-up) | ||||
| Share Forfeiture A/c (1,000 + 1,500 − 1,500) Dr. | 1,000 | |||
| To Capital Reserve A/c | 1,000 | |||
| (Balance transferred to Capital Reserve) | ||||
| Equity Share Second and Final Call A/c (98,500 × ₹4) Dr. | 3,94,000 | |||
| To Equity Share Capital A/c | 3,94,000 | |||
| (Second and final call due on the remaining 98,500 shares) | ||||
| Bank A/c Dr. | 3,94,000 | |||
| To Equity Share Second and Final Call A/c | 3,94,000 | |||
| (Second and final call money received) |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 2 Chapter 1 Q.76 - Share Capital", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Share Capital.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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