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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