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Problem 15 A Ltd. Co having an Authorised Capital of 40,000 shares of Rs. 100 each offered 25,000 shares to the public. On each share Rs. 20 were payable on application, Rs. 30 on allotment (including premium), Rs. 30 on first call and the balance of Rs. 30 on second call. Applications for 22,000 shares were received and shares were allotted. The amount received on these shares was as under: on 18,000 shares on 2,500 shares on 1,000 shares full amount Rs. 80 per share Rs. 50 per share Rs. 20 per share on 500 shares As per rule directors forfeited those shares on which less than Rs. 80 per share was received. Of the forfeited shares 1,000 shares were re-issued for Rs. 90 per share as fully paid. Give necessary journal entries and the balance sheet of the Company. ​

Answer :

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Answer:

Here are the journal entries for the given transactions:

1. **For receipt of application money:**

```

Bank A/c Dr. 4,40,000 (22,000 shares x Rs. 20)

Share Application A/c Cr. 4,40,000

```

2. **For Allotment:**

```

Share Application A/c Dr. 4,40,000 (22,000 shares x Rs. 20)

Share Allotment A/c Cr. 4,40,000

```

3. **For First Call:**

```

Share Allotment A/c Dr. 6,60,000 (22,000 shares x Rs. 30)

Share First Call A/c Cr. 6,60,000

```

4. **For Second Call:**

```

Share First Call A/c Dr. 6,60,000 (22,000 shares x Rs. 30)

Share Second Call A/c Cr. 6,60,000

```

5. **For Forfeiture of Shares:**

```

Share Final Call A/c Dr. (Amount due on forfeited shares)

Share Capital A/c Cr. (Nominal value of forfeited shares)

Share Forfeiture A/c Cr. (Excess received on forfeited shares)

```

6. **For Reissue of Forfeited Shares:**

```

Share Forfeiture A/c Dr. (Amount forfeited on reissued shares)

Bank A/c Cr. (Amount received on reissued shares)

Share Capital A/c Cr. (Nominal value of reissued shares)

```

To prepare the balance sheet, you would need more information about the assets, liabilities, and equity of the company. However, you can include the share capital and any additional information provided about the company's financial position. If you have more details, I can assist you further with the balance sheet preparation.

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