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Saturn Ltd. was registered with an authorized capital of Rs 12,00.000, divided into 1.20,000 equity- shares Rs 10 each. It issued 40.000 equip shares to the public at a premium of Rs 5 per share, payable as follows:

On application Rs 6 

On allotment Rs 9 (including premium of RS 5)

All the shares were applied for and allotted. One shareholder holding 500 shares did not pay the allotment money and his shares were forfeited. Out of the forfeited shares, the company reissued 400 shares at Rs 7 per share fully called up.

You are required to : 

(a) Pass journal entries in the books of the company. 

(b) Prepare: 

(i) Securities Premium Reserve Account

(ii) Share Capital Account.

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1 Answer

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by (46.2k points)

Securities Premium Reawrvs Account

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