Page No 9.118:
Question 46:
Alfa Ltd.
forfeited 900 Equity Shares of ` 100 each for the non-payment of allotment
money of ` 30 per share and the first call of ` 20 per
share. The second and final call of ` 25 per share has not been
made . The forfeited shares were reissued for ` 90 per share , ` 75 paid-up.
Journalise the above.
Answer:
Application |
25 |
Balancing
Figure |
Allotment |
30 |
|
First Call |
20 |
|
Final Call |
25 |
Un-called |
|
100 |
|
Called-up ` 75 per share
Books of X Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
|
|
|
|
|
|
Equity
Share Capital A/c (900×75) |
Dr. |
|
67,500 |
|
|
To Share Forfeiture A/c |
|
|
22,500 |
|
|
To Calls-in-Arrears A/c |
|
|
45,000 |
|
|
(900
shares of ` 100 each ` 75 called-up, forfeited for the
non-payment sum of allotment ` 30 and first call ` 20 per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
81,000 |
|
|
To Share Capital A/c |
|
|
67,500 |
|
|
To Securities Premium A/c |
|
|
13,500 |
|
|
(900
shares of ` 100 each
re-issued as ` 75 paid-up for ` 90 each) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture
A/c |
Dr. |
|
22,500 |
|
|
To Capital Reserve A/c |
|
|
22,500 |
|
|
(Balance
of Share Forfeiture Account after re-issue, transferred to Capital Reserve
Account) |
|
|
|
|
|
|
|
|
|
Working
Notes-
Share
forfeiture account credit |
= |
Share
application money received for 900shares |
|
= |
900×25 `. |
|
= |
22,500 |
Calculation of capital reserve |
|
|
Share
forfeiture account credit |
= |
22,500 |
Share
forfeiture account debit |
= |
Nil |
Capital
reserve |
= |
22,500 |
Page No 9.118:
Question 47: Max Ltd.
forfeited 500 shares of `100 each for
non-payment of first call of ` 20 per share and final call of
`25 per share. 250 of these shares
were re-issued at ` 50 per share fully
paid-up.
Pass the necessary Journal entries in the books of Max
Ltd. for forfeiture and re-issue of shares. Also prepare
the
Share Forfeiture Account. (CBSE 2020)
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|||
|
Share
Capital A/c |
Dr. |
|
50,000 |
|
|
To Share forfeited A/c |
|
|
27,500 |
|
|
To Share first call A/c |
|
|
10,000 |
|
|
To Share second call A/c |
|
|
12,500 |
|
|
(Being 500
shares forfeited for non Payment of first and
second Call ) |
|
|
|
|
|
Bank A/c |
Dr. |
|
12,500 |
|
|
Share
forfeited A/c |
|
|
12,500 |
|
|
To Share Capital A/c |
|
|
25,000 |
|
|
(Being 250
shares issued at 50 per shares) |
|
|
|
|
|
|
|
|
|
|
|
Share forfeited A/c |
Dr. |
|
1,250 |
|
|
To Capital Reserve A/c |
|
|
1,250 |
|
|
(Being
Forfeited amount of 250 re-issued shares) |
|
|
|
|
|
|
|
|
|
Page No 9.118:
Question 48: On 1st May, 2021, Moneyplus
Ltd. forfeited 200 shares of ` 20 each, ` 15 per share called-up, on which
` 10 per share has been paid by A, the
amount of the first call of ` 5 per share being
unpaid. Ten days later, the
Directors reissued the forfeited shares to B credited as `15
per share paid-up, fora payment of `10
per share
Give Journal entries in the company's books to record
the forfeited shares and their reissue.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
2014 |
|
|
|
|
|
May 01 |
Share
Capital A/c |
Dr. |
|
3,000 |
|
|
To Share Forfeiture A/c |
|
|
2,000 |
|
|
To share first call A/c |
|
|
1,000 |
|
|
(200
shares of ` 15 each
forfeited for non-payment of first call `5 per share) |
|
|
|
|
|
|
|
|
|
|
May 01 |
Bank A/c |
Dr. |
|
2,000 |
|
|
Share
Forfeiture A/c |
Dr. |
|
1,000 |
|
|
To Share Capital A/c |
|
|
3,000 |
|
|
(500
shares of ` 10 each
re-issued at ` 15 per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
May 11 |
Share
Forfeiture A/c |
Dr. |
|
1,000 |
|
|
To Capital Reserve A/c |
|
|
1,000 |
|
|
(Balance
in Shares Forfeiture Account of 200 shares re-issue, transferred to Capital Reserve
Account) |
|
|
|
|
|
|
|
|
|
Working note;
Distribution
of amount and no. of installment Application
and allotment etc. |
= |
10 |
|
First Call
|
= |
5 |
200 shares |
Second and
final call |
= |
5 |
|
Total |
= |
20 |
|
No. of shares forfeited and
re-issued=200 |
|
|
|
Page No 9.118:
Question 49:
The
Directors of Maharana
Ltd resolved on 1st May, 2020 that 2,000 Equity Shares of ` 10 each
, ` 7.50 paid be forfeited for non-payment of final
call of ` 2.50 . On 10th June, 2020, 1,800 of these shares were
reissued for `
6 per share . Give necessary Journal entries.
Answer:
Books of M Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
2012 |
|
|
|
|
|
May 01 |
Equity
Share Capital A/c |
Dr. |
|
20,000 |
|
|
To Share Forfeiture A/c |
|
|
15,000 |
|
|
To Call-in-Arrears A/c |
|
|
5,000 |
|
|
(2,000
shares of ` 10 each
forfeited for non-payment of final call ` 2.5 per share) |
|
|
|
|
|
|
|
|
|
|
June 10 |
Bank A/c |
Dr. |
|
10,800 |
|
|
Share
Forfeiture A/c |
Dr. |
|
7,200 |
|
|
To Share Capital A/c |
|
|
18,000 |
|
|
(1,800
shares of ` 10 each
re-issued at ` 6 per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share
Forfeiture A/c |
Dr. |
|
6,300 |
|
|
To Capital Reserve A/c |
|
|
6,300 |
|
|
(Balance
in Shares Forfeiture Account of 1,800 re-issue, transferred to Capital
Reserve Account) |
|
|
|
|
|
|
|
|
|
Working
Notes:
Share Forfeiture |
7.5 |
Cr. |
Share Forfeiture |
4 |
Dr. |
Balance in Share Forfeiture Account after re-issue |
3.5 |
Cr. per share |
Capital
Reserve = No. of Shares reissued × Balance in Share Forfeiture Account after
reissue (per share)
= 1,800 × ` 3.5 (per share)
= ` 6,300
Page No 9.119:
Question 50:
Sunshine
Ltd. issued 20,000 shares of ` 100 each payable ` 25 per
share on application , ` 25 per
share on allotment and the balance in two calls of ` 25 each.
The company did not make the final call of ` 25 per share. All the money
was duly received with the exception of the amount due on the first call on 400
shares held by Mr. Modi. The Board of Directors forfeited these shares and
subsequently reissued them @ ` 75 per share paid-up for a sum of ` 28,000.
Journalise the above transactions and prepare Share
Capital Account.
Answer:
Issued and
applied capital 20,000 shares of ` 100 each
Payable as:
Application |
` |
25 |
|
Allotment |
` |
25 |
|
First Call |
` |
25 |
|
Called-up |
` |
75 |
per share |
Final Call |
` |
25 |
|
|
` |
100 |
per share |
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
5,00,000 |
|
|
To Share Application A/c |
|
|
5,00,000 |
|
|
(Share
application money received for 20,000 shares at ` 25 each) |
|
|
|
|
|
|
|
|
|
|
|
Share
Application A/c |
Dr. |
|
5,00,000 |
|
|
To Share Capital A/c |
|
|
5,00,000 |
|
|
(Application
money transferred to Share Capital Account) |
|
|
|
|
|
|
|
|
|
|
|
Share Allotment
A/c |
Dr. |
|
5,00,000 |
|
|
To Share Capital A/c |
|
|
5,00,000 |
|
|
(Share
Allotment due on 20,000 shares at ` 25 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
5,00,000 |
|
|
To Share Allotment A/c |
|
|
5,00,000 |
|
|
(Allotment
money received) |
|
|
|
|
|
|
|
|
|
|
|
Share
First Call A/c |
Dr. |
|
5,00,000 |
|
|
To Share Capital A/c |
|
|
5,00,000 |
|
|
(Share
First Call due on 20,000 shares of ` 25 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
4,90,000 |
|
|
Calls-in-Arrears
A/c |
Dr. |
|
10,000 |
|
|
To Share First Call A/c |
|
|
5,00,000 |
|
|
(Share
First Call ` 25 per
share received on 19,600 shares and a holder of 400 shares did not pay it) |
|
|
|
|
|
|
|
|
|
|
|
Share
Capital A/c |
Dr. |
|
30,000 |
|
|
To Share Forfeiture A/c |
|
|
20,000 |
|
|
To Calls-in-Arrears A/c |
|
|
10,000 |
|
|
(400
shares of ` 100 each,
` 75
called-up, forfeited for the non-payment of Share First Call ` 25 per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
28,000 |
|
|
Share
Forfeiture A/c |
Dr. |
|
2,000 |
|
|
To Share Capital A/c |
|
|
30,000 |
|
|
(400
shares of ` 100 each,
` 75
paid-up, reissued for the sum of ` 28,000) |
|
|
|
|
|
|
|
|
|
|
|
Share
Forfeiture A/c |
Dr. |
|
18,000 |
|
|
To Capital Reserve A/c |
|
|
18,000 |
|
|
(Balance
in share forfeiture after re-issue, transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
Share Capital Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount ( `) |
Particulars |
Amount ( `) |
||
|
|
|
|
||
Share
Forfeiture |
20,000 |
Share
Application |
5,00,000 |
||
Calls-in-Arrears |
10,000 |
Share
Allotment |
5,00,000 |
||
|
|
Share
First Call |
5,00,000 |
||
|
|
Bank |
28,000 |
||
Balance
c/d |
|
Share
Forfeiture |
2,000 |
||
|
|
|
|
||
|
15,30,000 |
|
15,30,000 |
||
|
|
|
|
||
Working
Note-
Share Forfeiture Credit |
20,000 |
Less: Share
Forfeiture Debit |
2,000 |
Balance in Share Forfeiture Account after re-issue |
18,000 |
Capital
Reserve = Balance in Share Forfeiture Account after re-issue
= ` 18,000
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