Riya Closet Ltd invited applications for issuing - 10,000 Equity Shares of 10 each. The amount was payable as follows: On Application 1 per share On…

In the books of Riya Closet Ltd. Journal Entries Particulars L.F. Debit Amount (₹) Credit Amount (₹) Bank A/c Dr. 10,000 To Equity Share Application A/c 10,000 (Money received on applications for10,000 shares @1 per share) Equity Share Application A/c Dr. 10,000 To Equity Share Capital A/c 10,000 (Transfer of application money on 10,000 shares to share capital) Equity Share Allotment A/c Dr. 20,000 To Equity Share Capital A/c 20,000 (Amount due on the allotment of10,000 shares @2 per share) Bank A/c Dr. 19,800 To Equity Share Allotment A/c 19,800 (Allotment money received on 9,900 shares) OR Bank A/c Dr. Calls in arrears A/c Dr. To Equity Share Allotment A/c (Allotment Amount received except100 shares) Equity Share Capital A/c Dr. 300 To Share Forfeiture A/c 100 To Equity Shares Allotment A/c 200 (100 Shares of Meena forfeited) OR Equity Share Capital A/c Dr. To Shares Forfeiture A/c To Calls in arrears A/c (100 shares forfeited due to non-payment of allotment money) Equity Share First Call A/c Dr. 29,700 To Equity Share Capital A/c 29,700 (First call made due on 9,900 shares at 3 per share) Bank A/c Dr. 29,250 To Equity Share First Call A/c 29,250 (First call money received on 9,750 shares at 3 per share) OR Bank A/c Dr. Calls in arrears A/c Dr. To Equity Share First Call A/c (First Call money received except150 shares) Equity Share Capital A/c Dr. 900 To Share Forfeiture A/c 450 To Equity Share First Call A/c 450 (150 Shares of Seema forfeited) OR Equity Share Capital A/c Dr. To Share Forfeiture A/c To Calls in arrears A/c (150 shares forfeited due to non - payment of First call money) Equity Share Second and Final Call A/c Dr. 39,000 To Equity Share Capital A/c 39,000 (Second and Final call made due on 9,750 shares at 4 per share) Bank A/c Dr. 38,800 To Equity Share Second and Final Call A/c 38,800 (Second and Final call money received on 9,700 shares at 4 per share) OR Bank A/c Dr. Calls in arrears A/c Dr. To Equity Shares Second and Final Call A/c (Second and Final call money received except50 shares) Equity Share Capital A/c Dr. 500 To Share Forfeiture A/c 300 To Equity Share Second and Final Call A/c 200 (50 Shares of Mohan forfeited) OR Equity Share Capital A/c Dr. To Shares Forfeiture A/c To Calls in arrears A/c (50 shares forfeited due to non -payment of Second and final call money) Bank A/c Dr. 2,700 Share Forfeiture A/c Dr. 300 To Equity Share Capital A/c 3,000 (300 shares reissued at 9 per share) Share Forfeiture A/c Dr. 550 To Capital Reserve A/c (W.N.1) 550 (Profit on re -issue transferred to Capital Reserve) Working Note -1: Calculation of amount to be transferred to Capital Reserve: Surplus out of100 shares of Meena forfeited 100 Surplus out of150 shares of Seema forfeited 450 Surplus out of50 shares of Mohan forfeited 300 850 Less: Loss on re- issue of shares 300 Transferred to Capital Reserve 550