NH Ltd., with an authorized capital of ₹10,00,000 divided into 1,00,000 Equity shares of ₹10 each, issued 50,000 shares to the public at a premium of ₹2 per share, payable as follows:
₹ 5 on Application (including premium) ₹ 3 on Allotment. ₹ 4 on First & Final Call.
The subscription was at par and the share money was received in full with the exception of the allotment money on 4,000 shares held by shareholder Ravi and the call money on 6,000 shares (including Ravi’s shares).
The above 6,000 shares were forfeited by the company and 5,000 of these (including the shares which had been allotted to Ravi) were reissued at ₹ 8 per share as fully paid up.
You are required to pass journal entries to record the above transactions in the books of the company.
OR
MV Ltd. was registered with a capital of ₹ 2,00,000 divided into 10,000 Equity shares of ₹20 each, payable as follows:
On Application ₹5 per share On Allotment ₹7 per share On First & Final Call ₹8 per share
The company offered 5,000 shares to the public for yee peor. It received applications for 6,700 shares.
From amongst the applicants:
(i) Vimal, who had applied for 1,500 shares, paid ₹7,500 on application, but was allotted only 800 shares.
(ii) Abhay, who had applied for 2,000 shares, paid the full amount of ₹40, 000 with his application, but was allotted only 1,000 shares.
(iii) Nitin, who had applied for and allotted 500 shares, did not pay the allotment and call money when due.
(iv) The remaining applicants paid as and when due.
The surplus money paid by both Vimal and Abhay was used towards allotment and call and any surplus beyond the call was refunded.
The company forfeited Nitin’s shares after the final call.
You are required to pass journal entries to record the above transactions in the books of the company.
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