In the year 2022-23, Paresh Ltd. invited applications for 25,000 equity shares of ₹10 each payable as follows:
On application ₹ 5 per share On allotment ₹ 3 per share On call ₹ 2 per share Applications were received for 50,000 shares. It was decided:
(i) To allot 50% to Shyam who had applied for 10,000 shares. (ii) To allot in full to Kevin who had applied for 10,000 shares. (iii) To allot the balance of the available shares on pro rata basis among the other applicants. (iv) To utilise the excess application money in part payment of allotment and final call. Till the Balance Sheet as at 31st March, 2023, the company had asked the shareholders to pay up to the allotment stage. The amount due on the allotment was received from all shareholders except from Kevin, whose shares were immediately forfeited by the company. You are required to pass journal entries in the books of the company to record the above transactions
OR
(A) Following is an extract from the Journal of MM Ltd. You are required to complete the journal entries filling up the information represented by ‘?’ which is missing from these journal entries
Additional information:
MM Ltd. issued 20,000 Equity shares of the face value of ₹ 10 each at a premium of
₹ 5 per share, payable: ₹ 5 on application; ₹ 6 on allotment (including premium); ₹ 3 on first call; The balance as and when due You are required to complete:
• The journal entry for forfeiture of shares. • The journal entry for reissue of shares, clearly mentioning the number of forfeited shares reissued by the company.
(B) Shiv, the holder of 100 shares paid his first call of ₹ 4 per share, due on 1st May, 2023, along with his allotment money, on 1st September, 2023.
Interest is allowed by the company on calls-in-advance as per the provisions of Table F of the Companies Act, 2013. You are required to give the adjusting entry and closing entry for interest on calls- in-advance.
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