Lazal Ltd. invited applications for issuing $\displaystyle 2,00,000$ equity shares of ₹ $\displaystyle 10$ each, at $\displaystyle 20$% premium. Amount per share was payable as follows : ₹ $\displaystyle 5$ on application , ₹ $\displaystyle 4$ (including premium) on allotment , and balance on Erst and final call. Public applied for $\displaystyle 3,20,000$ shares, out of which applications for $\displaystyle 20,000$ shares were rejected and shares were allotted on pro-rata basis to the remaining applications. Kavita, an applicant of $\displaystyle 15,000$ shares failed to pay allotment and call money. Her shares were forfeited. Pass necessary Journal entries for the above transactions in the books of the company.

OR

Chand Ltd. invited applications for issuing $\displaystyle 1,00,000$ equity shares of ₹ $\displaystyle 10$ each at a premium of ₹ $\displaystyle 2$ per share. The amount per share was payable as follows : ₹ $\displaystyle 4$ (including premium) on application, ₹ $\displaystyle 5$ on allotment and balance on first and final call. Applications were received for $\displaystyle 1,80,000$ shares of which applications for $\displaystyle 30,000$ shares were rejected and remaining applicants were allotted shares on pro-rata basis. Mansi holding $\displaystyle 5,000$ shares failed to pay first and final call money and her shares were forfeited. Pass necessary Journal entries for the above transactions in the books of the company.

Books of Lazal Ltd. Journal L Debit Credit . Amount Amount Date Particulars F (₹) (₹) Bank A/c Dr $\displaystyle 16,00,000$ To Equity Share Application A/c $\displaystyle 16,00,000$ (Application money received on $\displaystyle 3,20,000$ shares) Equity Share Application A/c Dr $\displaystyle 16,00,000$ To Equity Share Capital A/c $\displaystyle 10,00,000$ To Equity Share Allotment A/c $\displaystyle 5,00,000$ To Bank A/c $\displaystyle 1,00,000$ (Application money transferred to Equity share capital A/c, Excess money received adjusted towards allotment and money refunded on rejected applications) Equity Share Allotment A/c Dr $\displaystyle 8,00,000$ To Equity Share Capital A/c $\displaystyle 4,00,000$ To Securities Premium A/c $\displaystyle 4,00,000$ (Amount due on allotment) Bank A/c Dr $\displaystyle 2,85,000$ Calls in Arrears A/c Dr $\displaystyle 15,000$ To Equity Share Allotment A/c $\displaystyle 3,00,000$ (Allotment money received except that on $\displaystyle 10,000$ shares) Alternatively Bank A/c Dr $\displaystyle 2,85,000$ To Equity Share Allotment A/c $\displaystyle 2,85,000$ (Allotment money received except that on $\displaystyle 10,000$ shares) Equity Share First and final Call A/cDr $\displaystyle 6,00,000$ To Equity Share Capital A/c $\displaystyle 6,00,000$ (Amount due on $\displaystyle 2,00,000$ shares on First Call) Bank A/c Dr $\displaystyle 5,70,000$ Calls in Arrears A/c Dr $\displaystyle 30,000$ To Equity Share first and final call $\displaystyle 6,00,000$ A/c (Amount received on First Call) Alternatively Bank A/c Dr $\displaystyle 5,70,000$ To Equity Share first and final call $\displaystyle 5,70,000$ A/c (Amount received on First Call) Equity Share Capital A/c Dr $\displaystyle 1,00,000$ Securities Premium A/c Dr $\displaystyle 15,000$ To Calls in Arrears A/c $\displaystyle 45,000$ To Forfeited Shares A/c $\displaystyle 70,000$ (Forfeiture of $\displaystyle 10,000$ shares for non payment of allotment and call money) Alternatively Equity Share Capital A/c Dr $\displaystyle 1,00,000$ Securities Premium A/c Dr $\displaystyle 15,000$ To Share Allotment A/c $\displaystyle 15,000$ To Share first & final call A/c $\displaystyle 30,000$ To Forfeited Shares A/c $\displaystyle 70,000$ (Forfeiture of $\displaystyle 10,000$ shares for non payment of allotment and call money) Or Q. (b) Chand Ltd. invited………………………………. Ans. Books of Chand Ltd. Journal L.F Debit Credit Date Particulars Amount Amount (₹) (₹) Bank A/c Dr $\displaystyle 7,20,000$ To Equity Share Application A/c $\displaystyle 7,20,000$ (Application money received on $\displaystyle 1,80,000$ shares) Equity Share Application A/c Dr $\displaystyle 7,20,000$ To Equity Share Capital A/c $\displaystyle 2,00,000$ To Securities Premium A/c $\displaystyle 2,00,000$ To Equity Share Allotment A/c $\displaystyle 2,00,000$ To Bank A/c $\displaystyle 1,20,000$ (Application money transferred to Equity share capital A/c, Securities Premium A/c & Excess money received adjusted towards allotment and money refunded on rejected applications) Equity Share Allotment A/c Dr $\displaystyle 5,00,000$ To Equity Share Capital A/c $\displaystyle 5,00,000$ (Amount due on allotment) Bank A/c Dr $\displaystyle 3,00,000$ To Equity Share Allotment A/c $\displaystyle 3,00,000$ (Allotment money received ) Equity Share first & final Call A/c Dr $\displaystyle 3,00,000$ To Equity Share Capital A/c $\displaystyle 3,00,000$ (Money due on First and Final Call) Bank A/c Dr $\displaystyle 2,85,000$ Calls in Arrears A/c Dr $\displaystyle 15,000$ To Equity Share first & final call A/c $\displaystyle 3,00,000$ (First and final call money received except that on $\displaystyle 5,000$ shares Alternatively Bank A/c Dr $\displaystyle 2,85,000$ To Equity Share first & final call A/c $\displaystyle 2,85,000$ (First and final call money received except that on $\displaystyle 5,000$ shares) ________________________________ Equity Share Capital A/c Dr $\displaystyle 50,000$ To Calls in Arrears A/c $\displaystyle 15,000$ To Forfeited Shares A/c (Forfeiture of $\displaystyle 5,000$ shares for non $\displaystyle 35,000$ payment of first and final call ) Alternatively Equity Share Capital A/c Dr $\displaystyle 50,000$ To Equity Share first & final call A/c $\displaystyle 15,000$ To Forfeited Shares A/c $\displaystyle 35,000$ (Forfeiture of $\displaystyle 5,000$ shares for non payment of first and final call )