Accounts Shares, Debenture

Note: - If Dr. side is less than GOODWILL is B/F & If Cr. Side less then CAPITAL RESERVE is B/F

• On issue of shares at Par
  Vendor a/c_____________________________dr.
  To share capital a/c
  
  
• On issue of shares at Sec.Prem.
  Vendor a/c_______________________________dr.
  To share capital a/c To sec. prem. a/c
  
  
• On isuue of shares at Discount
  Vendor a/c_________________________________dr.
  Discount on issue of shares a/c___________________dr. To Share capital a/c

Note: - A Working Note should be prepared to no, of shares to be issued

No. of shares it be issued: PURCHASE PRICE

Issue price shares

Calls in Arrears:--Sometimes some shareholders cannot pay their due amt. at the time of calls due then Calls in Arrears A/C should be opened and their journal entry is.

Bank a/c____________________________dr with amt.rec

Calls in arrears a/c____________________dr with amt. not paid

To particular calls a/c with total amt.

CALLS IN ADVANCE:- Sometimes some shareholders paid excess amt.before that particular call is due so CALLS IN ADVANCE A/C should be opened and their journal entry is.

Bank a/c____________________________dr with amt.rec

To Calls in advance a/c with excess amt. paid

To particular calls a/c with total amt.

Fortfeitured of shares (ISSUED AT PAR):- Sometimes some shareholders cannot pay their due amt. then company forfeiture/cancel that shares due to non payment and their journal entry is.

Shares capital a/c____________________________dr with called up values

To shares Forfeiture a/c with amt. paid up

To shares allotment a/c with unpaid amt.

To shares unpaid calls a/c with unpaid amt.

Fortfeitured of shares (ISSUED AT PREM):--

Here, there are two cases:--

• If prem. has been rec. Shares capital a/c____________________________dr with called up values
  
  To shares Forfeiture a/c with amt. paid up
  To shares allotment a/c with unpaid amt.
  To shares unpaid calls a/c with unpaid amt.
  
  
• If prem. has not been rec. Shares capital a/c____________________________dr with called up values Sec.Prem. a/c____________________________ dr.
  
  To shares Forfeiture a/c with amt. paid up
  To shares allotment a/c with unpaid amt
  To shares unpaid calls a/c with unpaid amt.

Note:- Students should note that if Prem has already been rec. by companyit cannot be cancelled if theshares are forfeitued in the future.