Aaru Ltd. has issued 500 Lakh equity shares of ₹10 each to public in the year of 2017-18. The amount were payable as ₹2 on application, ₹2 on allotment, ₹3 on first call and the balance on second and final call. All the

Journal Entries Date Particulars L.F. Debit (₹) Credit (₹) Equity Share Capital A/c Dr. 3,00,000 To Equity Share Allotment A/c 30,000 To Equity Share First Call A/c 75,000 To Equity Share Second Call A/c 90,000 To Forfeited Shares A/c 1,05,000 (Being 30000 shares forfeited due to non-payment of allotment and call money) Bank A/c Dr. 1,65,000 To Equity Share Capital A/c 1,50,000 To Securities Premium A/c 15,000 (Being Re-issue of 15000 shares at premium) Bank A/c Dr. 1,25,000 Forfeited Shares A/c Dr. 25,000 To Equity Share Capital A/c 1,50,000 (Being 15000 Forfeited shares re-issued at discount) Forfeited Shares A/c Dr. 80,000 To Capital Reserve A/c 80,000 (Being balance transferred to Capital Reserve A/c) Working Notes: Calculation of Calls in Arrear on Forfeited Shares No. of Shares Forfeited Unpaid Allotment Money @ ₹2 Unpaid First Call @ ₹3 Unpaid Second Call @ ₹3 X 15,000 30,000 45,000 45,000 Y 10,000 - 30,000 30,000 Z 5,000 - - 15,000 Total 30,000 30,000 75,000 90,000 Discount on Re-issue of Forfeited Shares = (10,000 × ₹1) + (5,000 × ₹3) = ₹25,000