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    Saregama Ltd invited applications for 80,000 equity shares at Rs. 100 per share with a premium of Rs. 10 per share. The shares were payable in installments - Rs. 30 on application, Rs. 30 on allotment (including premium), and Rs. 30 on first call. Applications were received for 120,000 shares and allotment was made on a pro rata basis. Some shareholders failed to pay subsequent installments, resulting in forfeiture of their shares. Journal entries are required to record this.

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    Saregama Ltd invited applications for 80,000 equity shares at Rs. 100 per share with a premium of Rs. 10 per share. The shares were payable in installments - Rs. 30 on application, Rs. 30 on allotment (including premium), and Rs. 30 on first call. Applications were received for 120,000 shares and allotment was made on a pro rata basis. Some shareholders failed to pay subsequent installments, resulting in forfeiture of their shares. Journal entries are required to record this.

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    © All Rights Reserved
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    2K views1 page

    Share Comprehensive Questions

    Uploaded by

    Laxmi Kant Sahani
    Saregama Ltd invited applications for 80,000 equity shares at Rs. 100 per share with a premium of Rs. 10 per share. The shares were payable in installments - Rs. 30 on application, Rs. 30 on allotment (including premium), and Rs. 30 on first call. Applications were received for 120,000 shares and allotment was made on a pro rata basis. Some shareholders failed to pay subsequent installments, resulting in forfeiture of their shares. Journal entries are required to record this.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Saregama Ltd invited applications for issuing 80,000 equity shares of ₹ 100 each at a premium of ₹

    10. The amount was payable as follows

    On Application – ₹ 30

    On allotment – ₹ 30 (including a premium of ₹ 10)

    On 1st call – ₹ 30

    On Final Call Balance

    Applications of 1,20,000 shares were received. Allotment was made on pro rata basis to all
    applicants. Excess money received on application was adjusted on sums due on allotment. Dhwani,
    who was allotted 1,600 shares, failed to pay allotment money and Sargam who applied of 6,000
    shares did not pay 1st call money. These shares were forfeited immediately after 1st call. 2,000 of
    these shares (including all shares of Dhwani were issued to Tarang for ₹ 95 per share as 80 paid up.
    Pass necessary journal entries in books of Saregama Ltd. by opening call in arrear, call in advance
    account, if final call has not been made.

    Or

    a. X Ltd. forfeited 10 shares of ₹ 10 each, ₹ 7 called up on which the shareholder had paid application
    and allotment money of ₹ 5 per share. Out of these, 8 shares were re-issued to Y for ₹8 per share at
    ₹ 8 per paid up per share. Record the journal entries for forfeiture and reissue of shares by opening
    call in arrear, call in advance account.
    b. L ltd forfeited Mr M’s shares who has applied for 600 shares and was allotted 400 shares failed to
    pay allotment money of ₹ 4 per share including premium of ₹ 2 on which he had paid application
    money of ₹ 2 only. Pass necessary journal entries for forfeiture of shares by opening call in arrear,
    call in advance account.

    c. Crown Ltd forfeited 50 shares of ₹ 10 each, for non- payment of final call money of ₹ 3 per share.
    Out of these 20 shares were reissued to Taj at₹ 8 per share. Record the journal entries for forfeiture
    and reissue of shares assuming that the company maintains call in arrear, call in advance account.

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