Suhas Limited issued 10000 equity shares of ₹10 each at a premium of ₹2 per share payable ₹3 on application, ₹5 (including premium) on allotment and the balance in two calls of equal amount. Applications were received for 11,000 equity shares and pro-rata allotment was made for all the applicants. The excess application money was adjusted towards allotment. Mrs. Shobha who were allotted 200 equity shares failed to pay F/F/C and her shares were forfeited after the final call. Show Journal entries in the books of Suhas Ltd. And also show its preparation in Balance Sheet.

6. Suhas Limited issued 10000 equity shares of ₹10 each at a premium of ₹2 per share payable ₹3 on application, ₹5 (including premium) on allotment and the balance in two calls of equal amount. 
Applications were received for 11,000 equity shares and pro-rata allotment was made for all the applicants. The excess application money was adjusted towards allotment. 
Mrs. Shobha who were allotted 200 equity shares failed to pay F/F/C and her shares were forfeited after the final call. 
 
Show Journal entries in the books of Suhas Ltd. And also show its preparation in Balance Sheet. 

 

 

 

Solution::

Journal Entry 

In the Books of Suhas Ltd. 

Date	Particulars	J.F	Debit ₹	Credit ₹
1	Bank A/c Dr.  To equity share application A/c   [Being equity share application received]		33,000	33,000
2.	equity share application A/c Dr.  To equity share capital A/c   To Share Allotment A/c   [Being equity share application money transferred to share capital and remaining amount adjusted against allotment]		33,000	30,000  3,000
3.	Equity Share Allotment A/c Dr.  To Equity Share Capital A/c  To Share Premium A/c  [Being allotment money due including premium]		50,000	30,000  20,000
4.	Bank A/c Dr.  To Equity Share Allotment A/c   [Being Allotment money received]		47,000	47,000
5.	Equity Share First Call A/c Dr.  To Equity Share Capital A/c  [Being Equity Share First call money due]		20,000	20,000

 

6.	Bank A/c Dr.  To Equity Share First Call A/c  [Being Equity Share expect 200 shares of Mrs. Shobha]		19,600	19,600
7.	Equity Share Final Call A/c Dr.  To Equity Share Capital A/c  [Being equity share final call money on 10,000 shares @ ₹ 2 per share due]		20,000	20,000
8.	Bank A/c Dr.  To Equity Share Final Call A/c  [Being share final call money received @ ₹ 2 per shar except 200 shares of Mrs. Shobha]		19,600	19,600
9.	Equity Share Capital A/c   Dr.  To Equity Share First Call A/c   To Equity Share Final Call A/c    To Equity Share Forfeiture A/c  [Being 200 shares of Mrs. Shobha forfeited due to non-payment of first and final call @ ₹ 2 each i.e., paid amount ₹ 6 per share forfeited by company]		2,000	400  400  1,200

 

Balance Sheet of Suhas Limited 

 

Liabilities	Amount	Assets	Amount
Share Capital	98,000	Bank	1,19,200
Share Premium	20,000
Share forfeiture	1,200
	1,19,200		1,19,200

 

 

 

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