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 |
|
|
|
Click on Below link for more questions Of Volume-1 of 12th