Problem 1:- Following particulars are given from the books and records of Standard Products Ltd. Relating to issue and forfeiture of Equity Shares during January to April, 2016. The amount per share was payable as under: $ 3 on Application $ 5 on Allotment ( including $ 2 as premium) $ 4 on First & Final Call. No. of shares No. of shares allotted applied for Category I 20,000 30,000 Category II 10,000 10,000 5,000 ( application money refunded) Allotments were made pro- rata in Category I. Mr. Giri who applied for 450 shares in Category I failed to pay Allotment and Call Money and his shares were forfeited by the Directors. Subsequently 200 forfeited Shares were reissued to Mr. Puri as fully paid for $ 9 per share. Show Journal and Cash Book entries to record the above transactions.

Problem 1:- Following particulars are given from the books and records of Standard Products Ltd. Relating to issue and forfeiture of Equity Shares during January to April, 2016. The amount per share was payable as under: $ 3 on Application $ 5 on Allotment ( including $ 2 as premium) $ 4 on First & Final Call. No. of shares No. of shares allotted applied for Category I 20,000 30,000 Category II 10,000 10,000 5,000 ( application money refunded) Allotments were made pro- rata in Category I. Mr. Giri who applied for 450 shares in Category I failed to pay Allotment and Call Money and his shares were forfeited by the Directors. Subsequently 200 forfeited Shares were reissued to Mr. Puri as fully paid for $ 9 per share. Show Journal and Cash Book entries to record the above transactions.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 94.1C

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