(Forfeiture of Shares which were Issued at Par). XYZ Ltd. issued 5,000 Equity Shares of Rs. 10
Channel: Doubtnut
Date: 2020-03-29

(Forfeiture of Shares which were Issued at Par). XYZ Ltd. issued 5,000 Equity Shares of Rs. 10 each at par payable: on application Rs. 2 per share, on allotment Rs. 3 per share, on first call Rs. 3 per share and on second and final call Rs. 2 per share. Param was allotted 40 shares. Give necessary Journal entries relating to the forfeiture of shares in each of the following alternative cases: Case 1. If Param failed to pay allotment money and his shares were forfeited. Case 2. If Param failed to pay allotment money and on his subsequent failure to pay the first call, his shares were forfeited. Case 3. If Param failed to pay the first call and on his subsequent failure to pay the final call, his shares were forfeited.