‘Venus Ltd’ was registered with an authorised capital of Rs.  40,00,000 divided into 4,00,000 equity shares of 10 each. 70,000 of these shares were issued as fully paid to ‘M/s. Star Ltd.’ for building purchased from them. 2,00,000 shares were issued to the public and the amounts were payable as follows:

On Application Rs. 3 per share

On Allotment Rs. 2 per share

On First Call Rs. 2 per share

On Second and Final Call Rs. 3 per share

The amounts received on these shares were as follows:

On 1,00,000 shares Full amount called

On 60,000 shares Rs. 7 per share

On 30,000 shares Rs. 5 per share

On 10,000 shares Rs. 3 per share

The directors forfeited 10,000 shares on which only Rs. 3 per share were received. These shares were reissued at Rs. 12 per share fully paid. Pass necessary journal entries for the above transactions in the books of ‘Venus Ltd’.

Marks-8, CBSE:2018-19/Comp/Q-17*

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