In the Books of Fashion Garments Ltd.
Journal Entries
Date Particulars L.F. Amount
(Dr.)
Amount
(Cr.)
1. Bank A/c (10000 eq. sh. X 1) Dr.
To Equity Share Application A/ c
(Being application money received on 10000 eq.
shares@1 per share)
10,000
10,000
2. Equity Share Application A/ c Dr.
To Equity Share Capital A/ c
(Being application money transferred to share
capital)
10,000
10,000
3. Equity Share Allotment A/ c Dr.
To Equity Share Capital A/ c
(Being allotment made due on 10000 equity
share @ 2 per share)
20,000
20,000
4. Bank A/ c (9900 eq. sh. X 2) Dr.
To Equity Share Allotment A/ c
(Being allotment money received on 9900
equity shares@2 per share)
19,800
19,800
5. Equity Share Capital A/c (100 eq. sh X 3) Dr.
To Equity Share Allotment A/c (100 eq. sh
X 2)
300
200
To Equity Share Forfeiture A/c (100 eq. sh
X 1)
(Being shares of Ram forfeited on non-
payment of allotment)
100
6. Equity Share 1st Call A/ c (9900 eq. sh X 3) Dr
To Equity Share Capital A/ c
(Being 1st Call money made due on 9900 equity
share @ 3 per share)
29,700
29,700
7. Bank A/c Dr.
To Equity Share 1st Call A/ c
(Being 1st Call money received on 9750 shares
@ 3 per share)
29,250
29,250
8. Equity Share Capital A/ c (150 eq. sh X 6) Dr.
To Equity Share Forfeiture A/c (Eq. sh 150
X 3)
To Equity Share 1st Call A/ c (Eq. sh 150 X
3)
(Being shares of Shyam forfeited on non-
payment of first call)
900
450
450
9. Eq. Share 2nd & Final Call A/ c Dr.
(9,750 eq. sh. X 4)
To Equity Share Capital A/ c
(Being 2nd and final call made due on 9,750
equity share@ 4 per share)
39,000
39,000
10. Bank A/c Dr.
To Equity Share 2nd & Final Call A/ c
(Being 2nd and final call money received on
9700 equity share@ 4 per share)
38,800
38,800
11. Equity Share Capital A/ c (50 eq. sh. X 10) Dr.
To Eq. Share Forfeiture A/ c (50 eq. sh. X 6)
To Eq. Share 2nd & Final Call A/ c (50 eq. sh.
X 4)
(Being shares of Mohan forfeited on non-
payment second & final call)
500
300
200
12. Bank A/ c (300 eq. sh. 9) Dr.
Equity Share Forfeiture A/ c (300 eq. sh. X 1) Dr.
To Equity Share Capital A/ c
(Being 300 shares reissued@ 9 per share)
2,700
300
3,000
13 Equity Share Forfeiture A/ c Dr.
To Capital Reserve A/c (1)
550
550
(Being balance of share forfeiture account
transferred to capital reserve account)
1. Amount forfeited
(100 + 450 + 300) = 850
Less : Loss on reissue = (300)
Amount transfer to capital reserve = 550