Page No 9.120:
Question 61:
Slow &
Steady Ltd. invited applications for 10,000 Equity Shares of `10
each for public subscription. The amount of these shares was payable as:
On application ` 1 per share, on allotment ` 2 per
share, on first call ` 3 per share
and on second and final call ` 4 per
share.
All sums payable on application, allotment and calls were duly received with
the following exceptions:
(i) A, who held 200 shares, failed
to pay the money on allotments and calls.
(ii) B, to whom 150 shares were allotted, failed to pay the money
on first call and final call.
(iii) C, who held 50 shares, did not pay the amount of second and final
call.
The shares of A, B and C were forfeited and were subsequently
reissued for cash as fully paid-up at a discount of 5%.
Pass necessary Journal entries to record these transactions in the books of X
Ltd.
Answer:
Issued and
Applied 10,000 Shares of `10 each
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|
A |
|
B |
|
C |
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Paid-up Shares |
|
Application |
` |
1 |
(10,000 |
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|
= |
10,000) |
|
Allotment |
` |
2 |
(10,000 |
– |
200 |
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|
|
|
= |
9,800) |
|
First Call |
` |
3 |
(10,000 |
– |
200 |
– |
150 |
|
|
= |
9,650) |
|
Second and
Final Call |
` |
4 |
(10,000 |
– |
200 |
– |
150 |
– |
50 |
= |
9,600) |
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|
10 |
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Books of Slow and Steady Limited Journal |
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Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
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Bank A/c |
Dr. |
|
10,000 |
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To Equity Share Application A/c |
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|
10,000 |
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|
(Share
application received for 10,000 shares at ` 1 each) |
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Equity
Share Application A/c |
Dr. |
|
10,000 |
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To Equity Share Capital A/c |
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|
10,000 |
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|
(Share
application money transferred to Share Capital) |
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Equity
Share Allotment A/c |
Dr. |
|
20,000 |
|
|
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To Equity Share Capital A/c |
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|
20,000 |
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|
(Share
allotment due on 10,000 shares at ` 2 each) |
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Bank A/c |
Dr. |
|
19,600 |
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|
Calls-In-Arrears
A/c |
Dr. |
|
400 |
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To Equity Share Allotment A/c |
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|
20,000 |
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|
(Share
allotment of ` 2 per share received on 9,800 shares and holder of
200 failed to pay to it) |
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Equity
Share First Call A/c |
Dr. |
|
30,000 |
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To Equity Share Capital |
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|
30,000 |
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|
(Share
first call due on 10,000 shares at ` 3 each) |
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Bank A/c |
Dr. |
|
28,950 |
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Calls-In-Arrears
A/c |
Dr. |
|
1,050 |
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To Equity Shares First Call A/c |
|
|
30,000 |
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|
(Share
first call received on 9,650 shares and holders of 350 shares failed to pay
it) |
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Equity
Share Final Call A/c |
Dr. |
|
40,000 |
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To Equity Share Capital A/c |
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|
40,000 |
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(Share
final call due on 10,000 shares at ` 4 each) |
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Bank A/c |
Dr. |
|
38,400 |
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Calls-In-Arrears
A/c |
Dr. |
|
1,600 |
|
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To Equity Share Final Call A/c |
|
|
40,000 |
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|
(Holders
of 9,600 shares paid final call and holders of 400 shares failed to pay it) |
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Equity
Share Capital A/c |
Dr. |
|
2,000 |
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|
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To Share Forfeiture A/c (200 × 1) |
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|
200 |
|
|
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To Calls-In-Arrears A/c (200 × 9) |
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|
1,800 |
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(200
shares held by A on which application money ` 1 was received, forfeited) |
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Equity
Share Capital A/c |
Dr. |
|
1,500 |
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To Share Forfeiture A/c (150 × 3) |
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|
450 |
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|
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To Calls-In-Arrears A/c (150 × 7) |
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|
1,050 |
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|
(150
shares of ` 10 each
held by B forfeited for the non-payment of two calls ` each) |
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Equity
Share Capital A/c |
Dr. |
|
500 |
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To Share Forfeiture A/c (50 × 6) |
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|
300 |
|
|
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To Calls-in-Arrears A/c (50 × 4) |
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|
200 |
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(50 shares
of ` 10 each
held by C forfeited for the non-payment of final call ` 4 each) |
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Bank A/c
(400 × 9.5) |
Dr. |
|
3,800 |
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Share
Forfeiture A/c (400 × .5) |
Dr. |
|
200 |
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To Equity Share Capital A/c |
|
|
4,000 |
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(400
shares of ` 10 each
re-issued at ` 9.5 per share as fully paid-up) |
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Share
Forfeiture A/c |
Dr. |
|
750 |
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To Capital Reserve A/c |
|
|
750 |
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|
(Balance
in Share Forfeiture Account after re-issue transferred to Capital Reserve) |
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Working
Note:
|
Share
Forfeiture of 100 shares held by A |
` |
200 |
Cr. |
|
Share
Forfeiture of 200 shares held by B |
` |
450 |
Cr. |
|
Share
Forfeiture of 300 shares held by C |
` |
300 |
Cr. |
|
Total
Share Forfeiture credit (at the
time of cancellation of shares) |
` |
950 |
|
Calculation
of Capital Reserve
Total Share
Forfeiture (at the time of cancellation of shares) = `
950
Less: Total
Share Forfeiture (at the time of re-issue of shares) =
` (200)
Capital
Reserve
= ` 750
Page No 9.121:
Question 62:
'Venus Ltd was registered with an authorised capital
of `40,00,000 divided into 4,00,000 equity shares of
` 10 each. 70,000 of these shares were
issued as fully paid to 'M/s. Star Ltd! for building purchased from
them.
2,00,000 shares were issued to the public and the
amounts were payable as follows:
|
On
Application |
-
`3 per share |
|
On
Allotment |
-
`2 per share |
|
On
First Call |
-
`2 per share |
|
On
Second and Final Call |
-
` 3 per share |
The amounts received on these shares were as follows:
|
On
1,00,000 shares |
-
Full amount called |
|
On
60,000 shares |
-
`7 per share |
|
On
30,000 shares |
-
`5 per share |
|
On
10,000 shares |
-
`3 per share |
The directors forfeited 10,000 shares on which only `
3 per share were received. These shares were reissued at `
12 per share fully paid. Pass necessary Journal entries for the above
transactions in the books of Venus Ltd. (CBSE 2019)
Answer:
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Journal |
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Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
|
|
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Building A/c (70,000 × 10) |
Dr. |
|
7,00,000 |
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To
M/s Star Ltd. A/c |
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|
7,00,000 |
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(Being
building bought) |
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M/s Star
Ltd. A/c |
Dr. |
|
7,00,000 |
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To
Equity Share Capital A/c |
|
|
|
7,00,000 |
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|
(Being
purchase consideration paid in equity share of ` 10 each) |
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Bank A/c
(2,00,000×3) |
Dr. |
|
6,00,000 |
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To
Equity Share application A/c |
|
|
|
6,00,000 |
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|
(Being
share application money received) |
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Equity
Share application A/c |
Dr. |
|
6,00,000 |
|
|
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To
Equity Share Capital A/c |
|
|
|
6,00,000 |
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|
(Being
share application money transferred to share capital ) |
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|||||
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Equity
Share Allotment A/c (2,00,000
× 2) |
Dr. |
4,00,000 |
||
|
|
To Equity
Share Capital A/c |
|
|
|
4,00,000 |
|
|
(Allotment
money due) |
|
|||
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|
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|||
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Bank A/c |
Dr. |
4,00,000 |
||
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To
Equity Share Allotment A/c |
|
4,00,000 |
||
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|
(Allotment
money received) |
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Equity
Share First Call A/c (2,00,000
× 2) |
Dr. |
4,00,000 |
||
|
|
To
Equity Share Capital A/c |
|
4,00,000 |
||
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|
(Call
money due) |
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|||
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Bank A/c
(1,60,000 × 2) |
Dr. |
3,20,000 |
||
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To
Equity Share First Call A/c |
|
3,20,000 |
||
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|
(Call
money received) |
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|||
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Equity
Share Second & final Call A/c (2,00,000
× 3) |
Dr. |
6,00,000 |
||
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To
Equity Share Capital A/c |
|
6,00,000 |
||
|
(Call
money due) |
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Bank A/c
(1,00,000 × 3) |
Dr. |
3,00,000 |
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To Equity Share Second & final Call A/c |
|
3,00,000 |
|||
|
(Call money
received except 1,00,000 shares) |
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Equity
Share Capital A/c (10,000×10) |
Dr. |
1,00,000 |
||
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To
Equity Share Allotment A/c (10,000×2) |
20,000 |
|||
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To
Equity Share First Call A/c (10,000×2) |
|
20,000 |
||
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To Equity Share Second & final Call A/c (10,000×3) |
30,000 |
||||
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To Equity share forfeiture A/c (10,000×3) |
30,000 |
||||
|
(Being
10,000 share forfeited) |
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Bank A/c |
Dr, |
1,20,000 |
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To Equity Share Capital A/c To Securities premium reserve a/c |
1,00,000 20,000 |
||||
|
(Being
10,000 forfeited shares, re-issued @ `12 per
share fully paid-up) |
|||||
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Equity
share forfeiture A/c To Capital Reserve A/c |
Dr. |
30,000 |
30,000 |
||
|
(Being
balance of share forfeiture transferred to Capital reserve a/c) |
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Page No 9.121:
Question 63:
A share of ` 100
issued at a premium of ` 10 on
which ` 80 (including premium) was called and ` 60
(including premium) was paid, has been forfeited. This share was afterwards
reissued as fully paid-up for ` 70 . Give Journal entries to record the above.
Answer:
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Journal |
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|
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
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|
|
|
|
|
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|
Share Capital
A/c ( ` 80 – 10 premium) |
Dr. |
|
70 |
|
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|
To Share Forfeiture ( ` 60 – 10 premium) |
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|
50 |
|
|
|
To Calls-In-Arrears A/c |
|
|
20 |
|
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|
(A share
of ` 100 on
which ` 70 called
excluding the amount of securities premium ` 10, forfeited for non-payment of ` 20) |
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Bank A/c |
Dr. |
|
70 |
|
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Share
Forfeiture A/c |
Dr. |
|
30 |
|
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To Share Capital A/c |
|
|
100 |
|
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|
(A share
of ` 100
re-issued at ` 70 as fully paid-up) |
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|
Share
Forfeiture A/c |
Dr. |
|
20 |
|
|
|
To Capital Reserve A/c |
|
|
20 |
|
|
|
(Balance
in Share Forfeiture after re-issue transferred to Capital Reserve) |
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Page No 9.121:
Question 64:
Pass journal
entries in the following cases:
NK Ltd forfeited 200 Equity
Shares of `10 each , issued at a premium of
` 5 per share , held by Ram for non-payment of the
final call of ` 3 per share
. Of these , 100 shares were reissued to Narender at a discount of ` 4 per share
.
Answer:
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|
Journal |
||||
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Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
|
|
|
|
|
|
|
|
Equity
Share Capital A/c |
Dr. |
|
20,000 |
|
|
|
To Share Forfeiture A/c (2,000 × ` 7) |
|
|
14,000 |
|
|
|
To Calls-in-Arrears A/c |
|
|
6,000 |
|
|
|
(2,000
shares of ` 10 each
forfeited for the non-payment of ` 3 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
600 |
|
|
|
Share
Forfeiture A/c (100 × ` 4) |
Dr. |
|
400 |
|
|
|
To Equity Share Capital A/c |
|
|
1,000 |
|
|
|
(100
shares of ` 10 each
reissued at ` 6 per
share as fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
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|
Share
Forfeiture A/c |
Dr. |
|
300 |
|
|
|
To Capital Reserve A/c |
|
|
300 |
|
|
|
(Balance
in Share Forfeiture of 100 re-issued shares transferred to Capital Reserve ) |
|
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Working
Note-
|
Share
Forfeiture of re-issued shares |
|||
|
Share
Forfeiture |
Cr. |
` 7 |
per share |
|
Share
Forfeiture |
Dr. |
` 4 |
per share |
|
Balance in
share forfeiture after re-issue |
Cr. |
3 |
per share |
Capital
Reserve = Balance in Share Forfeiture after re-issue × No. of shares re-issued
= Re 3 × 100
shares
= ` 300
Page No 9.121:
Question 65:
VT
Ltd forfeited 200 shares of ` 10 each , issued at a premium of ` 5 per share
, held by Mohan for non-payment of the final call of ` 3 per share
. 100 out of these shares were reissued to Narender at a discount of ` 4 per share
. Journalise.
Answer:
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|
Books of VT Limited Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
||
|
|
|
|
|
|
||
|
|
Share
Capital A/c (200 × ` 10) |
Dr. |
|
2,000 |
|
|
|
|
To Share Forfeiture A/c (200 × ` 7) |
|
|
1,400 |
||
|
|
To Calls-in-Arrears A/c |
|
|
600 |
||
|
|
(200
shares of ` 10 each
forfeited for non-payment of ` 3 each) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Bank A/c |
Dr. |
|
600 |
|
|
|
|
Share
Forfeiture A/c (100 × ` 4) |
Dr. |
|
400 |
|
|
|
|
To Share Capital A/c |
|
|
1,000 |
||
|
|
(100
shares of ` 10 each
re-issued at ` 6 per share fully paid-up) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Share
Forfeiture A/c |
Dr. |
|
300 |
|
|
|
|
To Capital Reserve A/c |
|
|
300 |
||
|
|
(Balance
in share forfeiture of 100 shares transferred to capital reserve) |
|
|
|
||
|
|
|
|
|
|
||
Working
Notes:
|
Share
Forfeiture of re-issued shares |
||
|
Share
Forfeiture Cr. |
` 7 |
per share |
|
Share
Forfeiture Dr. |
` 4 |
per share |
|
Balance in
Share Forfeiture after re-issue |
` 3 |
per share |
|
Capital Reserve |
= Balance
in Share Forfeiture after re-issue (per share) × No. of shares
re-issued |
|
|
= Re 3 ×
100 |
|
|
= ` 300 |
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