Page 338 - VIRANSH COACHING CLASSES

First Call = No. of shares × Call Money
= 100 × 2.5 = 250

Second Call = No. of shares × Call
= 100 × 2.5 = 250

Forfeited Shares = Balance Amount

11 Shraddha Ltd. issued 100000 equity shares of ` 10 each at a premium of ` 2 per share payable
as -
` → 3 on Application
` → 5 on Allotment

` → 4 on first& final call

Applications were received for 1,20,000 equity shares and pro-rata allotment was made to all the
applicants. The excess application money was adjusted with allotment.
Vinita who was allotted 200 shares failed to pay First & Final call and her shares were forfeited.
Pass Journal Entries in the books of Shraddha Ltd. and show the Balance Sheet

Journal Entries in the Books of Shraddha Ltd.

Date Particulars L.F. Debit ` Credit `
1. Bank A/c .............................................................Dr. 3,60,000
To Equity Share Application A/c 3,60,000
(Being application money on 1,20,000 Equity shares
@ ` 3 per share received)
2. Equity Share Application A/c .............................Dr. 3,60,000
To Equity Share Capital A/c 3,00,000
To Equity Share Allotment A/c 60,000
(Being application money on 1,00,000 shares
transferred to share capital A/cand remaining money
adjusted against allotment)
3. Share Allotment A/c ............................................Dr. 5,00,000
To Share Capital A/c 3,00,000
To Share Premium A/c 2,00,000
(Being allotment money on 1,00,000 equity shares @
` 5 per share including premium due)
4. Bank A/c .............................................................Dr. 4,40,000
To Equity Share Allotment A/c 4,40,000
(Being share allotment money received after adjusting
excess application money received)
5. Equity Share First and Final Call A/c ................Dr. 4,00,000
To Equity Share Capital A/c 4,00,000
(Being Equity share first & Final Call Money on
1,00,000 shares @ ` 4 per share due)

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