Sarthaks APP
0 votes
76.6k views
in Accounts by (64.1k points)

Himalaya Company Limited issued for public subscription of 1,20,000 equity shares of Rs.10 each at a premium of Rs.2 per share payable as under :

With ApplicationRs. per share
On Allotment (including premium )Rs.5 per share
On First Call Rs.per share
On second and Final callRs. per share

Applications were received for 1,60,000 shares. The allotment was made on a pro-rata basis. Excess money on the application was adjusted against the amount due on allotment. Rohan, whom 4,800 shares were allotted, failed to pay for the two calls. These shares were subsequently forfeited after the second call was made. All the shares forfeited were reissued to Teena as fully paid at Rs 7 per share. Record journal entries in the books of the company to record these transactions relating to share capital. Also, show the company’s balance sheet.

1 Answer

0 votes
by (106k points)
selected by
 
Best answer

Working Note :

(i) On Allotment money due

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...