CBSE 2025, Set 2

Question

(a) Radhika Ltd. invited applications for issuing 40,000 equity shares of ₹100 each at a premium of ₹50 per share. The amount was payable as follows:
On Application and Allotment: ₹40 per share (including ₹10 premium)
On First call: ₹45 per share (including ₹5 premium)
On Second and final call: Balance

Applications for 39,000 shares were received. Allotment was made in full to all the applicants. Dinu, to whom 100 shares were allotted, failed to pay the first call money. His shares were immediately forfeited. The forfeited shares were re-issued thereafter at ₹70 per share fully paid up. The second and final call was not yet made.
Pass necessary journal entries for the above transactions in the books of Radhika Ltd.

Edvaya · Accepted Answer

The correct answer is Subjective. **Books of Radhika Ltd. - Journal** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | | Bank A/c Dr.     To Equity Share App. & Allotment A/c (App money on 39,000 shares @ 40) | | 15,60,000 | 15,60,000 | | | Equity Share App. & Allotment A/c Dr.     To Equity Share Capital A/c (39,000×30)     To Securities Premium A/c (39,000×10) | | 15,60,000 | 11,70,000 3,90,000 | | | Equity Share First Call A/c Dr.     To Equity Share Capital A/c (39,000×40)     To Securities Premium A/c (39,000×5) | | 17,55,000 | 15,60,000 1,95,000 | | | Bank A/c Dr. Calls in Arrears A/c Dr.     To Equity Share First Call A/c (Money received except on 100 shares) | | 17,50,500 4,500 | 17,55,000 | | | Equity Share Capital A/c (100×70) Dr. Securities Premium A/c (100×5) Dr.     To Share Forfeiture A/c (100×30)     To Calls in Arrears A/c (100 shares forfeited) | | 7,000 500 | 3,000 4,500 | | | Bank A/c (100×70) Dr. Share Forfeiture A/c (100×30 discount) Dr.     To Equity Share Capital A/c (100×100) (Reissue of 100 shares fully paid at 70) | | 7,000 3,000 | 10,000 | | | *(No Capital Reserve transfer as all 3,000 discount utilised)* | | | |

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Accountancy > Accounting For Companies > Accounting For Share Capital

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