Q 103 DK Goel Issue of Shares Solutions Class 12 CBSE (2024-25)

Solution of Question number 103 of Accounting for Companies Issue of shares chapter 6 of DK Goel Class 12 CBSE (2024-25)

R.K. Ltd. invited applications for issuing 70,000 Equity Shares of ₹ 10 each at a premium of ₹ 35 per share. The amount was payable as follows:

Applications for 65,000 shares were received and allotment was made to all the applicants. A shareholder, Ram, who was allotted 2,000 shares, failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards, the first and final call was made. Sohan, who had 3,000 shares, failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares, 4,000 shares were re-issued at ₹ 50 per share fully paid up. The re-issued shares included all the shares of Ram.

Pass necessary journal entries for the above transactions in the books of R.K. Ltd.

[Ans. Forfeited amount in respect of Ram’s shares ₹ 6,000; Forfeited amount in respect of Sohan’s shares ₹ 15,000; Amount transferred to Capital Reserve ₹ 16,000 (₹ 6,000 in respect of Ram’s shares and ₹ 10,000 in respect of Sohan’s shares).]

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