Books of Prince Limited Journal:
Balance Sheet:
Working Notes :
(1) Calculation of Mohit's Advance on Allotment:
Advance on 20,000 Shares = ₹20,000
∴ Advance on 400 shares
(2) Calculation of Share Forfeiture to be Transferred:
Forfeiture amount related to 800 reissue shares = 1,200 + (400 × 2,400/600)
= 2,800
Used in reissue = ₹800
∴ transferred to Capital Reserve
= 2,800 - 800
= ₹2,000