Question 41:
Ankit Ltd.
issued 20,000 equity shares of 10 each at a premium of `
2 per share, payable as:
|
On
Application |
: |
` 3 |
|
On
Allotment |
: |
` 5
(including premium) |
|
On First
Call |
: |
` 2 |
|
On Second
and Final Call |
: |
` 2 |
Vijay was
allotted 500 shares. Pass the necessary Journal entries relating to the
forfeiture of shares in following cases.
|
Case I |
Vijay did
not pay allotment money and his shares were immediately forfeited. |
|
Case II |
Vijay did
not pay allotment and first call, his shares were forfeited after first call. |
|
Case III |
Vijay
failed to pay first call and his shares were forfeited immediately. |
|
Case IV |
Vijay
failed to pay both the calls and his shares were forfeited. |
Answer:
Case I:
|
In the books of Ankit Ltd. Journal |
|||||
|
Date |
Particulars |
|
L.F. |
Debit ( `) |
Credit ( `) |
|
|
Share
Capital A/c (500 × 6) |
Dr. |
|
3,000 |
|
|
|
Securities
Premium Reserve A/c (500 × 2) |
Dr. |
|
1,000 |
|
|
|
To
Share Forfeiture A/c (500 × 3) |
|
|
|
1,500 |
|
|
To
Share Allotment A/c (500 × 5) |
|
|
|
2,500 |
|
|
(Being 500
shares forfeited for non-payment of allotment money) |
|
|
|
|
Case II:
|
In the books of Ankit Ltd. Journal |
|||||
|
Date |
Particulars |
|
L.F. |
Debit ( `) |
Credit ( `) |
|
|
Share
Capital A/c (500 × 8) |
Dr. |
|
4,000 |
|
|
|
Securities
Premium Reserve A/c (500 × 2) |
Dr. |
|
1,000 |
|
|
|
To
Share Forfeiture A/c (500 × 3) |
|
|
|
1,500 |
|
|
To
Share Allotment A/c (500 × 5) |
|
|
|
2,500 |
|
|
To
Share First Call A/c (500 × 2) |
|
|
|
1,000 |
|
|
(Being 500
shares forfeited for non-payment of allotment and first call) |
|
|
|
|
Case III:
|
In the books of Ankit Ltd. Journal |
|||||
|
Date |
Particulars |
|
L.F. |
Debit |
Credit |
|
|
Share
Capital A/c (500 × 8) |
Dr. |
|
4,000 |
|
|
|
To
Share Forfeiture A/c (500 × 6) |
|
|
|
3,000 |
|
|
To
Share First Call A/c (500 × 2) |
|
|
|
1,000 |
|
|
(Being 500
shares forfeited for non-payment of first call) |
|
|
|
|
Case IV:
|
In the books of Ankit Ltd. Journal |
|||||
|
Date |
Particulars |
|
L.F. |
Debit |
Credit |
|
|
Share
Capital A/c (500 × 10) |
Dr. |
|
5,000 |
|
|
|
To
Share Forfeiture A/c (500 × 6) |
|
|
|
3,000 |
|
|
To
Share First Call A/c (500 × 2) |
|
|
|
1,000 |
|
|
To
Share Second and Final Call (500 × 2) |
|
|
|
1,000 |
|
|
(Being 500
shares forfeited for non-payment of first and second call) |
|
|
|
|
Question 42:
Black Stone
Ltd. issued 10,000 Equity Shares of ` 10 each at a premium
of ` 3 per share payable ` 5 on
application, ` 5 (including premium) on allotment
and the balance on first call. All the shares offered were applied for and
allotted. All the money due on allotment was received except on 200 shares.
Call was made. All the amount due thereon was received except on 300 shares.
Directors forfeited 200 shares on which both allotment and call money were not
received.
Pass
necessary Journal entries to record the above.
Answer:
Issued and
Applied 10,000 Shares at ` 10 each at a premium of ` 3 per share
|
Application |
` |
5 |
|
|
Allotment |
` |
5 |
(2+3) |
|
First and
Final Call |
` |
3 |
|
|
|
` |
13 |
(10+3) Called-up |
|
In the Books of Black Stone Ltd. |
|||||
|
Date |
Particulars |
L.F. |
Debit ( `) |
Credit ( `) |
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
50,000 |
|
|
|
To Equity Share Application A/c |
|
|
50,000 |
|
|
|
(Share
application money received for 10,000 shares at ` 5 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Application A/c |
Dr. |
|
50,000 |
|
|
|
To Equity Share capital A/c |
|
|
50,000 |
|
|
|
(Share
application money transferred to Share Capital Account) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Allotment A/c |
Dr. |
|
50,000 |
|
|
|
To Equity Share Capital A/c |
|
|
20,000 |
|
|
|
To Securities Premium |
|
|
30,000 |
|
|
|
(Share
allotment due on 10,000 shares at ` 5 per share including premium ` 3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
49,000 |
|
|
|
Calls-in-Arrears
A/c |
Dr. |
|
1,000 |
|
|
|
To Equity Share Allotment A/c |
|
|
50,000 |
|
|
|
(All
allotment money received except 200 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share First and Final Call A/c |
Dr. |
|
30,000 |
|
|
|
To Equity Share Capital A/c |
|
|
30,000 |
|
|
|
(First and
final due on 10,000 shares at ` 3 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
29,100 |
|
|
|
Calls-in-Arrears
A/c |
Dr. |
|
900 |
|
|
|
To Equity Share First and Final
Calls A/c |
|
|
30,000 |
|
|
|
(First and
final call received on all shares except 300 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Capital A/c |
Dr. |
|
2,000 |
|
|
|
Securities
Premium A/c |
Dr. |
|
600 |
|
|
|
To Share Forfeiture A/c |
|
|
1,000 |
|
|
|
To Calls-in-Arrears A/c |
|
|
1,600 |
|
|
|
(200
shares forfeited for the non-payment of ` 8 per share including ` 3 premium) |
|
|
|
|
Question 43:
Determine the maximum permissible discount and minimum reissue price that a
company can allow at
the
time of reissue of forfeited shares in the following cases:
6) A share of `
10 originally issued at par on which application and allotment money of `
5 was received.
(ii) A share of `
10 originally issued at a premium of `
1 on which application and allotment money
Including premium) of `
5 was received.
(i) A share of `
10 originally issued at a premium of `
1 on which application and allotment money
(Excluding premium) of `
5 was received.
Answer:
|
Situations |
Maximum Permissible
Discount |
Minimum Reissue price |
|
1 |
5 |
5 |
|
2 |
4 |
6 |
|
3 |
5 |
5 |
Question 44: What amount of gain on reissue will be transferred to
Capital Reserve under following situations?
(i) 3,000 shares of `10
each of Rakesh were forfeited by crediting `
5,000 to Forfeited Shares Account.
Out of these, 1,800 shares were reissued to Mohan for `
9 per share as fully paid-up.
(ii) Z Ltd. forfeited 20 shares of `
100 each (` 60 called-up) issued at par to Shiv
on which he paid
` 20 per share. Out of these, 15
shares were reissued to Rajesh as `
60 paid-up for ` 45 per share.
Answer:
|
Situations |
Gain on Re-Issue of forfeited shares |
|
1 |
`1200 |
|
2 |
`75 |
Click on Below link for more questions Of Volume-1 of 12th