Sarthaks Test
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Bharat Ltd. invited applications for issuing 2,00,000 Equity Shares off Rs.10 each. The amount was payable as. On application Rs.3 per share. on allotment Rs.5 per share and on first and final call Rs.2 per share. Applications for 3,00,000 shares were received and promo allotment was made to all the applications on the following basis: Applicants for 2,00,000 shares were allotted 1,50,000 shares on pro rota basis. Applicants for 1,00,000 shares were allotted 50,000 shares on pro rota basis. Bajaj, who was allotted 3,000 shares out of group applying for 2,00,000 shares failed to pay the allotment money. His shares were forfeited immediately after allotment. Sharma, who had applied for 2,000 shares out of the group applying for 1,00,000 shares failed to pay the first and final call. His shares werealso forfeited, Out of the forfeited shares 3,500 shares were reissued as fully paid-up @ Rs.8 per share. The reissued shares included all the forfeited shares of Bajaj. Give necessary Journal entries to record the above transactions

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Working Note:

Capital Reserve on re- issue of Bajaj'shares = 2 x3,000 (no of shares re- issued )= Rs.6,000 

Capital Reserve on re-issue of 500 shares of sharma =Rs.6x500 (no. of shares re-issued) =Rs 3,000

Total capital Reserve on 3,500 shares =6,000 (re-issue of bajaj's)+3,000 (re-issue of sharma's) = Rs,9,000

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