Arun holds 2000 shares of rs10 each in ram limited he has paid rs 2 and 3 per share on application allotment respectively but faild to pay rs 3and rs.2 per share of first and second call respectively direct cost forfeited his share

Answer:

Particulars                                                                        Amt       Amt

1) Share Capital A/c                                              Dr          

    To share allotment a/c                                                  

    To share first call a/c                                                    

    To share second call a/c                                            

    To share forfeiture a/c                                

( Being  share @  per share  called up

forfeited after making second call)

2) Bank  a/c                                                                              Dr        

      To sh.capital a/c                                                                            

       To securities a/c                                                                            

( Being  share @  each  per share

fully paid up reissued)

3)  share forfeited a/c                                                           Dr        

       To capital reserve a/c                                                                  

(Being balance of share forfeited account

transferred to capital reserve a/c after reissue)

Working note: -

            TOTAL MONEY CALLED-UP                         RS.

                   Application                                              

                   Allotment                                                  

                    First call                                                  

                   Second call                                              

                                                                   Total =      

Amount transferred to share forfeited

application money received from Amit ( share)

Application and allotment money received from Bimal ( share )

application, allotment and first call received from Chetan ( share )

 Amount transferred to share forfeited

CALCULATION OF CAPITAL RESERVE

As share are reissued at price higher than face value hence full amount of share forfeited will be transferred to capital reserve

Hope this answer was helpful!!!