Ganesh Ltd. issued a prospectus inviting applications for 20,000 shares of Rs. 10 each at premium of Rs. 4 per share, payable as follows : {:("On Application","Rs. 4 (including premium Rs. 1)"),("On Allotment","Rs. 3 (including premium Rs. 1)"),("On First Call","Rs. 3 (including premium Rs. 1)"),("On Second and Final Call","Rs. 4 (including premium Rs. 1)"):} Applications were received for 30,000 shares and pro-rata allotment was made on the applications for 24,000 shares. It was decided to utilise excess application money towards the sums due on allotment. X, who was allotted 500. shares, failed to pay the allotment money and on his subsequent failure to pay the first call, his share were forfeited. Y, who applied for 1,800 shares, failed to pay the two calls and his shares were forfeited after the second call. Of the shares forfeited, 1,7000 shares were re-issued as fully paid up for Rs. 8 per share, the whole of Y' shares being included. Prepare Cash Book, Journal and Balance Sheet.

Ganesh Ltd. issued a prospectus inviting applications for 20,000 share

1.	Ganesh Ltd. issued a prospectus inviting applications for 20,000 shares of Rs. 10 each at premium of Rs. 4 per share, payable as follows : {:("On Application","Rs. 4 (including premium Rs. 1)"),("On Allotment","Rs. 3 (including premium Rs. 1)"),("On First Call","Rs. 3 (including premium Rs. 1)"),("On Second and Final Call","Rs. 4 (including premium Rs. 1)"):} Applications were received for 30,000 shares and pro-rata allotment was made on the applications for 24,000 shares. It was decided to utilise excess application money towards the sums due on allotment. X, who was allotted 500. shares, failed to pay the allotment money and on his subsequent failure to pay the first call, his share were forfeited. Y, who applied for 1,800 shares, failed to pay the two calls and his shares were forfeited after the second call. Of the shares forfeited, 1,7000 shares were re-issued as fully paid up for Rs. 8 per share, the whole of Y' shares being included. Prepare Cash Book, Journal and Balance Sheet.
Answer» Solution :Cash at Bank Rs. 2,78,500, Cash received on allotment Rs. 42,900, Balance of Share FORFEITURE A/c Rs. 1,140, Capital Reserve Rs. 4,860, Balance of Securities PREMIUM Reserve A/c Rs. 75,500, Total of Balance Sheet Rs. 2,78,500. HINT: (i) Entry on forfeiture of 500 Share of X : `{:("Share Capital A/c","Dr.3,500"),("Securities Premium Reserve A/c","Dr.1,000"),("(Rs. 500 for allotment + Rs. 500 for Ist Call)",),("To Share Allotment A/c","1,100"),("To Share First Call A/c","1,500"),("To Share Forfeiture A/c","1,900"):}` (ii) Entry on forfeiture of 1,500 SHARES of Y : `{:("Share Capital A/c","Dr.15,000"),("Securities Premium Reserve A/c",),("(Rs. 1,500 for 1st Call + Rs. 1,500 for 2ns Call)","Dr.3,000"),("To Share First Call A/c","4,500"),("To Shares Second & FINAL Call A/c","6,000"),("To Share Forfeiture A/c","7,500"):}`

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