Are you looking for the solution to Question number 48 of the Accounting for Share Capital chapter of TS Grewal Book 2023-24 Edition CBSE Board?
Ankit Ltd issued 20,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share, payable as:
|On Application||₹ 3|
|On Allotment||₹ 5 (including premium)|
|On First Call||₹ 2|
|On Second and Final Call||₹ 2|
Vijay was allotted 500 shares. Pass the necessary Journal entries relating to the forfeiture of shares in following cases.
Case 1. Vijay did not pay allotment money and his share were immediately forfeited.
Case 2. Vijay did not pay allotment and first call, his shares were forfeited after first call.
Case 3. Vijay failed to pay first call and his shares were forfeited immediately.
Case 4. Vijay failed to pay both the calls and his shares were forfeited.
[Ans.: Case 1. Dr. Share Capital A/c – ₹ 3,000 and Securities Premium A/c – ₹ 1,000; Cr. Forfeited Shares A/c – ₹ 1,500 and Shares Allotment A/c – ₹ 2,500.