Question
Consider the following journal entry:
src="https://www.ixambee.com/questionimage/Chapter/1690539208-38.JPG" alt="" /> In what circumstances, such journal entry is passed?Solution
Amount of discount which was earlier booked as expense is now reversed: Share Capital A/c Dr (amount called up) To share allotment A/c (allotment unpaid) To share call A/c (call unpaid) To forfeited shares A/c (total amount paid) To discount on issue of shares A/C (amount of discount)
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