12th | Ts grewal 2022-2023 Question 45 to 48 | Share Capital - Company Accounting

Question 45:

Z Ltd. issued 10,000 shares of the value of   ` 10 each , payable   ` 3 on application,  ` 3 on allotment and  ` 4 on the first and final call . All amounts are duly received except the call money on 100 shares . These shares are subsequently forfeited by Directors and are resold as fully paid-up for  ` 500 .
Give necessary journal entries for the transactions.

Answer:

Journal
Date	Particulars		L.F.	Debit   `	Credit   `
	Bank A/c	Dr.		30,000
	To Share Application A/c				30,000
	(Share application money received for 10,000 shares at  ` 3 each)
	Share Application A/c	Dr.		30,000
	To Share Capital A/c				30,000
	(Share application money transferred to Share Capital)
	Share Allotment A/c	Dr.		30,000
	To Share Capital A/c				30,000
	(Allotment due on 10,000 shares at  ` 3 per shares)
	Bank A/c	Dr.		30,000
	To Share Allotment A/c				30,000
	(Share allotment money received)
	Share First and Final Call A/c	Dr.		40,000
	To Share Capital A/c				40,000
	(First and final call due on 10,000 shares at  ` 4 each)
	Bank A/c	Dr.		39,600
	Calls-in-Arrears A/c	Dr.		400
	To Share First and Final Call				40,000
	(First and final call of  ` 4 per share received on 9,900 shares, and 100 shares failed to pay it)
	Share Capital A/c	Dr.		1,000
	To Share Forfeiture A/c				600
	To Calls-in-Arrears A/c				400
	(100 shares of  ` 10 each forfeited for the non-payment of first and final call  ` 4 per share)
	Bank A/c	Dr.		500
	Share Forfeiture A/c	Dr.		500
	To Share Capital A/c				1,000
	(100 shares of  ` 10 each re-issued for the sum of  ` 500)
	Share Forfeiture A/c	Dr.		100
	To Capital Reserve A/c				100
	(Balance in Share Forfeiture Account after re-issue of shares, transferred to Capital Reserve Account)

 

Working Note

Shares forfeited account (Dr.)	=	600
Less; Share forfeited account (Cr.)	=	(500)
Balance of share forfeited account after re-issue	=	100
capital reserve(Amount to be transferred) = Balance of share forfeited account                  =100

 

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   `	Credit   `
	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)

 

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   `	Credit   `
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

 

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Chapter-9: Company Accounting-Share Capital  | 2022-2023

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