Match the following.
| Journal Entries | Narratives |
| A. Share Allotment A/c Dr. To Share Capital A/c To securities Premium Reserve A/c |
I. Forfeiture of Shares for Non- Payment of Second and Final Call |
| B. Shares Capital A/c Dr. To Share Second and Final Call A/c To Share Forfeiture A/c |
II. Amount due on allotment of Shares including premium |
| C. Share Forfeiture A/c Dr. To Capital Reserve A/c |
III. First Call amount received on shares |
| D) Bank A/c Dr. To Equity share first call A/c |
IV. Profit on reissue shares transferred to Capital Reserve |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
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.