Show the Journal entries in the books of Subhash Company Ltd. All the shares were subscribed and duly allotted. Company made all the calls. All cash was duly received except the first & final call on 100 equity shares. These shares were forfeited by the company and were re-issued as fully paid for ₹75 per share.




All the shares were subscribed and duly allotted. Company made all the calls. All cash was duly received except the first & final call on 100 equity shares. These shares were forfeited by the company and were re-issued as fully paid for ₹75 per share. 
 
Show the Journal entries in the books of Subhash Company Ltd. 

 

 

Solution: 

Journal Entry  

 

In the Books of Shubhash Company Limited 

Date 

Particulars 

J.F 

Debit ₹ 

Credit ₹ 

1 

Bank A/c Dr. 

To Equity Share Application A/c 

[(Being application money on 2,000 equity shares @ ₹ 30 per share received] 

 

60,000 

 

60,000 

2. 

Equity Share Application A/c Dr  

To Equity Share Capital A/c 

[Being application money received on 2,000 equity shares transferred to equity share capital] 

 

60,000 

 

60,000 

3. 

Equity Share Allotment A/c Dr. 

To Equity Share Capital A/c 

[Being equity share allotment money on 2,000 shares @ ₹ 30 per share due] 

 

60,000 

 

6,000 

4. 

Bank A/c Dr. 

To Equity Share Allotment A/c 

[Being equity share allotment money on 2,000 shares @ ₹ 30 per share received] 

 

60,000 

 

 

60,000 

5. 

Equity Share First and Final Calls A/c Dr. 

To Equity Share Capital A/c 

[Being equity share first and final call money on 2,000 shares @ ₹ 40 per share due] 

 

80,000 

 

80,000 







6. 

Bank A/c Dr. 

To Equity Share First and Final Call A/c 

[Being equity share first and final call money on 1900 shares @ ₹ 40 per share received] 

 

76,000 

 

76,000 

7. 

Equity Share Capital A/c Dr. 

To Equity Share First and Final Call A/c 

To Equity Share Forfeiture A/c 

[Being forfeiture of 100 shares due to non-payment of first and final call] 

 

10,000 

 

4,000 

6,000 

8. 

Bank A/c Dr 

Equity Share Forfeiture A/c Dr 

To Equity Share Capital A/c 

[Being re-issue of 100 forfeited shares @ ₹ 75 per share) 

 

7,500 

2,500 

 

 

10,000 

9. 

Equity Share Forfeiture A/c Dr 

To Capital Reserve A/c 

[Being balance of Share Forfeiture A/c transferred to Capital Reserve A/c] 

 

3,500 

 

3,500 

 

 

 

 

 

 
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