‘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*