‘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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