of shares with allotment money.
Required: Journal entries (5 marks)
ABC Co. Ltd offered 9,000 shares of Rs. 50 each at 10% premium payable as under:
On application Rs. 25, On allotment Rs. 10 and rest of the balance on final call.
Public applied for 12,000 shares. Directors decided to allot the shares on pro-rata basis to 10,000 shares
and rest were rejected. Excess application money were utilized towards amount due on allotment. All the
called up money were duly received.
Required: Journal entries (5 marks)
A company forfeited 1,000 shares of Rs. 100 each for non payment of final call of Rs. 30. These shares
were re-issued at Rs. 80 per share as fully paid.
Required: Journal entries for Final call, Share forfeiture, Re-issue and transfer (5 marks)
Chandra Co. Ltd issued 12,000 shares of Rs. 100 each at discount of Rs. 10 per share to purchase the
following assets and liabilities of Surya Co. Ltd:
Creditors: Rs. 250,000
Loan: Rs. 400,000
Machinery: Rs. 800,000