Answer to Question #281116 in Accounting for SHUBHAM

Question

A company has issued 1200 equity shares of Rs.10each to the public and called the amount of thereon as under

With application Rs.2.50 per share

(Including premium of Rs 2)

On allotment of Rs 4.50per share

On final call Rs 5Per share

Mr Raj pawar has purchased 130 shares He failed to pay on final call and therefore his shares were forfeited these forfeited share were re issued to Mr.Ravindra Raut at an agreed price of Rs.10.50per share

Prepare and pass the necessary Journal entries

Answer 1

1. Debit settlements with founders credit authorized capital - 12 000
2. Debit settlements with other debtors and creditors credit other income and expenses - 1300
3. Debit other income and expenses credit settlements with other debtors and creditors- 1300
4. Debit settlements with founders credit authorized capital - 650
5. Debit other income and expenses credit settlements with other debtors and creditors- 650