Kunal Fortune Ltd invited applications for issuing - 30,000 Equity Shares of 10 each. The amount was payable as follows: (i) On Application 1 per…

In the books of Kunal Fortune Ltd. Journal Entries Particulars L.F. Debit Amount (₹) Credit Amount (₹) Bank A/c Dr. 30,000 To Equity Share Application A/c 30,000 (Money received on applications for30,000 shares @1 per share) Equity Share Application A/c Dr. 30,000 To Equity Share Capital A/c 30,000 (Transfer of application money of30,000 shares to share capital) Equity Share Allotment A/c Dr. 60,000 To Equity Share Capital A/c 60,000 (Amount due on the allotment of30,000 shares @2 per share) Bank A/c Dr. 59,400 To Equity Share Allotment A/c 59,400 (Allotment money received on 29,700 shares) OR / Alternative Solution: Particulars L.F. Debit Amount (₹) Credit Amount (₹) Bank A/c Dr. 59,400 Calls in arrears A/c Dr. 600 To Equity Share Allotment A/c 60,000 (Allotment money received except300 shares) Particulars L.F. Debit Amount (₹) Credit Amount (₹) Equity Share Capital A/c Dr. 900 To Share Forfeiture A/c 300 To Equity Shares Allotment A/c 600 (300 Shares of Arun forfeited) OR / Alternative Solution: Particulars L.F. Debit Amount (₹) Credit Amount (₹) Equity Share Capital A/c Dr. 900 To Shares Forfeiture A/c 300 To Calls in arrears A/c 600 (300 shares forfeited due to non -payment of allotment money) Particulars L.F. Debit Amount (₹) Credit Amount (₹) Equity Share First Call A/c Dr. 89,100 To Equity Share Capital A/c 89,100 (First call made due on 29,700 shares at 3 per share) Bank A/c Dr. 87,750 To Equity Share First Call A/c 87,750 (First call money received on 29,250 shares at 3 per share) OR / Alternative Solution: Particulars L.F. Debit Amount (₹) Credit Amount (₹) Bank A/c Dr. 87,750 Calls in arrears A/c Dr. 1,350 To Equity Share First Call A/c 89,100 (First Call money received except450 shares) Particulars L.F. Debit Amount (₹) Credit Amount (₹) Equity Share Capital A/c Dr. 2,700 To Share Forfeiture A/c 1350 To Equity Share First Call A/c 1350 (450 Shares of Ajeet forfeited) OR / Alternative Solution: Particulars L.F. Debit Amount (₹) Credit Amount (₹) Equity Share Capital A/c Dr. 2,700 To Share Forfeiture A/c 1,350 To Calls in arrears A/c 1,350 (450 shares forfeited due to non -payment of First call money) Particulars L.F. Debit Amount (₹) Credit Amount (₹) Equity Share Second and Final Call A/c Dr. 1,17,000 To Equity Share Capital A/c 1,17,000 (Second and Final call made due on 29,250 shares at 4 per share) Bank A/c Dr. 1,16,400 To Equity Share Second and Final Call A/c 1,16,400 (Second and Final call money received on 29,100 shares at 4 per share) OR / Alternative Solution: Particulars L.F. Debit Amount (₹) Credit Amount (₹) Bank A/c Dr. 1,16,400 Calls in arrears A/c Dr. 600 To Equity Shares Second and Final call A/c 1,17,000 (Second and Final call money received except150 shares) Particulars L.F. Debit Amount (₹) Credit Amount (₹) Equity Share Capital A/c Dr. 1,500 To Share Forfeiture A/c 900 To Equity Share Second and Final Call A/c 600 (150 Shares of Mohan forfeited) OR / Alternative Solution: Particulars L.F. Debit Amount (₹) Credit Amount (₹) Equity Share Capital A/c Dr. 1,500 To Shares Forfeiture A/c 900 To Calls in arrears A/c 600 (50 shares forfeited due to non -payment of Second and final call money) Particulars L.F. Debit Amount (₹) Credit Amount (₹) Bank A/c Dr. 8,100 Share Forfeiture A/c Dr. 900 To Equity Share Capital A/c 9,000 (900 shares reissued at 9 per share) Share Forfeiture A/c Dr. 1,650 To Capital Reserve A/c (W.N.1) 1,650 (Profit on re -issue transferred to Capital Reserve) Working Note -1: Calculation of amount to be transferred to Capital Reserve: Surplus out of300 shares of Arun forfeited - 300 Surplus out of450 shares of Ajeet forfeited - 1,350 Surplus out of150 shares of Mohan forfeited - 900 2,550 Less: Loss on re -issue of shares - 900 Transferred to Capital Reserve - 1,650