A holds 100 shares of Rs. 10 each, on which he has paid only Rs. 2.50 per share as application
Channel: Doubtnut
Date: 2020-04-26

A holds 100 shares of Rs. 10 each, on which he has paid only Rs. 2.50 per share as application money.  B, who holds 200 shares of Rs. 10 each, has paid Rs. 2.50 and Rs. 2 per share as application and allotment money, respectively.  C holds 300 shares of Rs. 10 each and has paid Rs. 2.50 per share on application, Rs. 2 per share on allotment and Rs. 3 per share on first call.  They failed to pay their arrears and the final call. Therefore the Directors forfeited their shares.  These shares were subsequrntly reissued for cash at a discount of 10 per cent.  Record journal entries in the books of the company to give effect to the above.