Question

A Limited company invites applications for 50,000 equity shares of Rs. 10 each payable as follows :
`{:("On Application","Rs. 3"),("On Allotment","Rs. 4"),("On First Call","Rs. 2"),("On Final Call","Balance"):}`
Applications were rerceived for 70,000 shares. Allotments were made on the following bais :
(i) To applications for 10,000 shares - in full.
(ii) To applicants for 60,000 shares - 40,000 shares
Excess money paid on application was utlised towards allotment money. A shareholder who was allotted 1,000 shares out of the group applying for 60,000 shares failed to pay allotted money and money due on calls. These shares were forfeited. 600 forfeited shares were re-issued as fully paid on receipt of Rs. 8 per share. Prepare Cash Book and journal entries in the books of company.

Answer 1

Bank Balance Rs. 4,99,300, Amount received on allotment Rs. 1,37,500, On First Call Rs. 98,000 and on Final Call Rs. 49,000, Amount transferred to Capital Reserve Rs. 1,500.