Question 65:
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 ` |
Credit ` |
|
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|
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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) |
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|
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|
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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|
|
|
|
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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 |
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|
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
Question 66:
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:
|
|
Books of VT Limited Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
||
|
|
|
|
|
|
||
|
|
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) |
|
|
|
||
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|
|
|
||
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Share
Forfeiture A/c |
Dr. |
|
300 |
|
|
|
|
To Capital Reserve A/c |
|
|
300 |
||
|
|
(Balance
in share forfeiture of 100 shares transferred to capital reserve) |
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|
|
||
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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 |
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|
= ` 300 |
Question 67:
The
Directors of a company forfeited 300 shares of `10 each issued at a premium
of ` 3 per share , for the non-payment of the first call
money of ` 2 per share . The final call of `2 per share has not been
made. Half the forfeited shares were reissued at `1,500 as fully paid-up.
Record the journal entries for the forfeiture and reissue of shares.
Answer:
|
Journal Entries |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|
|
|
|
|
|
Share
Capital A/c (300 × 8) |
Dr. |
|
2,400 |
|
|
|
To Share Forfeiture A/c (300 × 6) |
|
|
1,800 |
|
|
|
To Calls-In-Arrears (300 × 2) |
|
|
600 |
|
|
|
(300
shares of ` 10 each
on which ` 8 had called, forfeited for non-payment ` 2 per share) |
|
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|
|
|
|
|
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|
Bank A/c |
Dr. |
|
1,500 |
|
|
|
To Share Capital A/c |
|
|
1,500 |
|
|
|
(150
shares of ` 10 each
re-issued for the sum of ` 1,500) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Forfeiture A/c |
Dr. |
|
900 |
|
|
|
To Capital Reserve A/c |
|
|
900 |
|
|
|
(Balance
in Share Forfeiture Account of 150 re-issued shares, transferred to Capital
Reserve) |
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|
|
|
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|
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Working
Notes
Share
Forfeiture of Re-issued Shares
|
Share
Forfeiture (at the
time of forfeiture) |
Cr. |
6 |
|
|
Less: Share
Forfeiture (at the time of re-issue) |
Dr. |
NIL |
|
|
Balance in
Share Forfeiture after re-issue |
Cr. |
6 |
per share |
Capital
Reserve = Balance in Share Forfeiture after reissue (per share) × Number of
Shares Reissued
= ` 6 × 150
= ` 900
Question 68:
X Ltd . forfeited 100 shares of ` 10 each ( ` 8
called-up) issued at a premium of ` 2 per share
to Rahul, on which he had paid applications money of ` 5 per share
, for non-payment of allotment money of ` 5 per share
(including premium). Out of these, 70 shares were reissued to Sanjay as ` 8
called-up for ` 7 per share. Give necessary journal
entries relating to forfeiture and reissue of shares.
Answer:
|
Books of X Limited Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|
|
|
|
|
|
Share
Capital A/c (100 × 8) |
Dr. |
|
800 |
|
|
|
Securities
Premium A/c (100 × 2) |
Dr. |
|
200 |
|
|
|
To Share Forfeiture A/c (100 × 5) |
|
|
500 |
|
|
|
To Calls-in-Arrears A/c (100 × 5) |
|
|
500 |
|
|
|
(100
shares of ` 10 each, ` 8 called-up with premium ` 2 per share, forfeited for the
non-payment of ` 5 each including ` 2 premium) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
490 |
|
|
|
Share
Forfeiture A/c |
Dr. |
|
70 |
|
|
|
To Share Capital A/c |
|
|
560 |
|
|
|
(70 shares
of ` 10 each
re-issued at ` 7 per share, ` 8 paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Forfeiture A/c |
Dr. |
|
280 |
|
|
|
To Capital Reserve A/c |
|
|
280 |
|
|
|
(Balance
of 70 shares re-issued shares in Share Forfeiture Account transferred to
Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
Working
Note-
|
Share
Forfeiture Credit |
5 |
per share |
|
Less: Share
Forfeiture Debit |
1 |
per share |
|
Balance in
Share Forfeiture of re-issued shares |
4 |
per share |
Capital
Reserve = Balance in Share Forfeiture Account of re-issued shares × No. of
shares re-issued
= 70 × 4
= ` 280
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