Journal Entries

Debit Credit
Date Particulars L.F. Amount Amount
Rs Rs

Share Application A/c Dr. 14,400

To Share Capital A/c 10,000
To Securities Premium A/c 2,000
To Share Allotment A/c 2,400
(Share application money of 2,000 shares transferred to Share
Capital and Securities Premium at Rs 5 and Re 1 each
respectively and Rs 2,400 adjusted on allotment)

Share Allotment A/c Dr. 4,000

To Share Capital A/c 2,000
To Securities Premium A/c 2,000
(Allotment due on 2,000 shares at Rs 2 each including Re 1
premium)

Share First Call A/c Dr. 6,000

To Share Capital A/c 4,000
To Securities Premium A/c 2,000
(First call due on 2,000 shares at Rs 3 each including Re 1
premium)

Share Capital A/c (40 shares × Rs 8) Dr. 320

Securities Premium A/c Dr. 72
To Share Forfeiture A/c 240
To Share Allotment A/c 32
To Share First Call A/c 120
(40 shares of Rs 10 each Rs 8 called with premium forfeited for
non-payment of amount due)

Share Final Call A/c Dr. 5,880

To Share Capital A/c 3,920
To Securities Premium A/c 1,960
(Final call due on 1,960 shares at Rs 3 each including Re 1
premium)

Share Capital A/c Dr. 600

Securities Premium A/c Dr. 120
To Share Forfeiture A/c 360
To Share First Call A/c 360
(60 shares forfeited for non-payment of amount due)
Bank A/c Dr. 720
Share Forfeiture A/c Dr. 80
To Shares Capital A/c 800
(80 shares of Rs 10 each re-issued at Rs 9 per share fully paid-
up)

Share Forfeiture A/c Dr. 400

To Capital Reserve 400
(Balance of 80 reissued shares in Share Forfeiture Account
transferred to Capital Reserve)