ABC Ltd offered for public subscription 10000 shares of Rs.10 each at Rs.11 per share. Money was payable as follows: Rs 3 on application, Rs 4 on allotment(including premiem), Rs 4 on first and final call.

Applications were received for Rs 12000 shares and the directors made pro-rata allotment. Akash who applied for 120 shares did not pay allotment and call money and Shalu, a holder of 200 shares, failed to pay the call. All these shares were forfeited. Out of the forfeited shares, 150 shares( including all the shares of Akash) were issued at Rs 8 per share. Pass necessary journal entries.


Asked by purnayyap | 8th Nov, 2019, 08:39: PM

Expert Answer:

The question is based on the concept of forfeiture of shares and reissue of forfeited shares. All types of questions related to this concept are available on the website under text book solutions of the respective chapters. 
Complete solutions alongwith detailed workings will help in solving all similar problems very easily.

Answered by Surabhi Gawade | 9th Nov, 2019, 10:17: AM

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