Mahalaxmi Industries Ltd. Kundur issued 15000 equity shares of Rs. 100 each. They were payable as follows:

Mahalaxmi Industries Ltd. Kundur issued 15000 equity shares of Rs. 100 each. They were payable as follows:
On Application Rs. 20
On Allotment Rs. 30
On First Call Rs. 25
On Second Call Rs. 25
The company received application for 12000 shares. All the applications were accepted and shares were alloted. The company made both the calls. One Shareholder holding 400 shares failed to pay the final call. His shares were forefeited.

Pass journal entries in the books of Mahalaxmi Industries Ltd. Kundur. [10]

Solution: Journal of M/s Mahalaxmi Industries Ltd. Kundur.


Date
Particulars
L.F.
Debit
(Rs.)
Credit
(Rs.)
1.
Bank A/c ... Dr.

240000


To Equity Share Application A/c


240000

[Being share application money received]








2.
Equity share Application A/c .... Dr.

240000


To Equity share Capital A/c


240000

[Being share application money transferred to share capital A/c ]








3.
Equity share Allotment A/c ... Dr.

360000


To Equity Share Capital A/c


360000

[Being share allotment money due]








4.
Bank A/c ... Dr.

360000


To Equity Share Allotment A/c


360000

[Being share allotment money received]








5.
Equity Share First Call A/c ... Dr.

300000


To Equity Share Capital A/c


300000

[Being share first call money due]








6.
Bank A/c ... Dr.

300000


To Equity Share First Call A/c


300000

[Being first call money received]








7.
Equity Share Final Call A/c ... Dr.

300000


To Equity Share capital A/c


300000

[Being share final call money due]








8.
Bank A/c ... Dr.

290000


To Equity Share Final Call A/c


290000

[Being final call money received on 11600 shares]








9.
Equity share Capital A/c ... Dr.
40000


To Equity Share Final Call A/c


10000

To Equity Share Forefeited A/c


30000

[Being 400 share forefeited on account of non - payment of final call].