Bareli Ltd. has been incorporated with authorized capital of Rs.6.00.000 divided into 60,000 shares of Rs. 10 each . It offers its 50,000 shares for public subscriptttttttion on the following conditions : Application - Rs. 3 per share , 1st Call - Rs. 2 per share , Allotment - Rs. 2 per share and 2nd Call (Final Call too) - Rs. 3 per share . Company received all the application amount but when allotment is made a shareholder could not pay on his holdings of 200 shares and directors forfeited his shares immediately . After 1st call 150 from the forfeited share reissued for Rs.6 per share . Final call also made on share and duly received . You are required to pass necessary journal entries lor the transactions took place .
In this Question , at the time of reissue why 150*7 will be the share capital , why not 150*(7+3) ?
Why 200*(3+2) will be the called up share capital for forfeiture , not 200*10 ?
CAclubindia
