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S Ltd. issued 5,000 shares of Rs. 100 ea...

S Ltd. issued 5,000 shares of Rs. 100 each at a premium of Rs. 10 each payable as follows :
`{:("On Application","Rs. 30"),("On Allotment","Rs. 40 (including premium)"),("On First & Final Call","Rs. 40"):}`
All the shares were applied for the instalments received on due dates with the exception of the Allotment and First & Final Call on 100 shares, these shares were forefited and re-issued as fully paid @ Rs. 105 per share. Pass necessary Journal Entries in the books of the Company.

Text Solution

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Hint : Allotment money on 100 forfeited shares has not been received and as the premium was also due on allotment, therefore, premium also has not been received. Ass such, Securities Premium Reserve Account has been debited in the entry for forfeiture of shares.
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