The correct answer is option 4- A-II, B-I, C-IV, D-III.
| Journal Entries |
Narratives |
A. Share Allotment A/c Dr.
To Share Capital A/c
To securities Premium Reserve A/c |
II. Amount due on allotment of Shares including premium |
B. Shares Capital A/c Dr.
To Share Second and Final Call A/c
To Share Forfeiture A/c |
I. Forfeiture of Shares for Non- Payment of Second and Final Call |
C. Share Forfeiture A/c Dr.
To Capital Reserve A/c |
IV. Profit on reissue shares transferred to Capital Reserve |
D) Bank A/c Dr.
To Equity share first call A/c |
III. First Call amount received on shares |
* Share Allotment A/c Dr.
To Share Capital A/c
To securities Premium Reserve A/c - It is related with due amount of allotment on shares with premium.
* Shares Capital A/c Dr.
To Share Second and Final Call A/c
To Share Forfeiture A/c - It is related with forfeiture of shares on non payment of final call.
* Share Forfeiture A/c Dr.
To Capital Reserve A/c - It is related with transferring balance to capital reserve.
* Bank A/c Dr.
To Equity share first call A/c - It is related with amount received on the first call.
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