Q 105 DK Goel Issue of Shares Solutions Class 12 CBSE (2024-25)
Solution of Question number 105 of Accounting for Companies Issue of shares chapter 6 of DK Goel Class 12 CBSE (2024-25)
Shiva Ltd. invited applications for issuing 2,00,000 Equity Shares of ₹ 100 each at a premium of ₹ 60 per share. The amount was payable as follows:
| On application | ₹ 30 per share (including premium ₹ 10) |
| On Allotment | ₹ 70 per share (including premium ₹ 50) |
| On First and final call | the balance amount |
Applications for 1,90,000 shares were received. Shares were allotted to all the applicants and the company received all money due on allotment except Jain who had been allotted 1,000 shares, and his shares were immediately forfeited. Afterwards first and final call was made. Gupta did not pay the first and final call on his 2,000 allotted shares. His shares were also forfeited. 50% of the forfeited shares of both Jain and Gupta were re-issued for ₹ 90 per share fully paid up.
Pass necessary journal entries in the books of Shiva Ltd. for the above transactions.
[Ans. Amount received on Allotment ₹ 1,32,30,000. Amount received on first and final call ₹ 1,12,20,000; Forfeiture amount ₹ 20,000 + ₹ 80,000; Capital Reserve ₹ 35,000.]
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