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Healthy Foods Ltd. had authorised capital of Rs 50,00,000

Home » Healthy Foods Ltd. had authorised capital of Rs 50,00,000

94 :- Healthy Foods Ltd. had authorised capital of Rs 50,00,000, 5,00,000 equity shares of Rs 10 each issued 3,75,000 equity shares for subscription at a premium of 20% payable Rs 4 on application, Rs 5 on allotment and balance as first and final call. The shares were subscribed, and due amounts were received except allotment money on 25,000 shares. These shares were forfeited. Later these shares were reissued at Rs 7 paid-up and Rs 50,000 were transferred to Capital Reserve. First and final call was demanded from the shareholders and was received except on 10,000 which was transferred to Calls-in Arrears Account.
Pass the Journal entries for forfeiture, reissue of forfeited shares and first and final call.

Solution :-

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