Question 69:
150 shares
of ` 10 each issued at a premium of ` 4 per share
payable with allotment were forfeited for non-payment of allotment money
of ` 8 per share including premium. The first and final
call of ` 4 per Pass Journal entries in the books of X Ltd. for
the above.
Answer:
|
|
|||||
|
Date |
Particulars |
L.F. |
Debit ( `) |
Credit ( `) |
|
|
|
Share
Capital A/c |
Dr. |
|
900 |
|
|
|
Securities
Premium A/c |
Dr. |
|
600 |
|
|
|
To
Share Allotment A/c |
|
|
1,200 |
|
|
|
To
Share Forfeiture A/c |
|
|
300 |
|
|
|
(150
shares of ` 10 each
forfeited for non–payment of allotment money of ` 8 per share including premium of ` 4 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,250 |
|
|
|
To
Share Capital A/c |
|
|
1,500 |
|
|
|
To
Securities Premium A/c |
|
|
750 |
|
|
|
(150
shares of ` 10 each
reissued for ` 15 per share fully paid–up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Forfeiture A/c |
Dr. |
|
300 |
|
|
|
To
Capital Reserve A/c |
|
|
300 |
|
|
|
(Balance
of Share Forfeiture Account transferred to Capital Reserve Account) |
|
|
|
|
Question 70:
JCV Ltd.,
forfeited 200 shares of ` 10 each
issued at a premium of ` 2 per share
for the non-payment of allotment money of ` 3 per share
(including premium). The first and final call of ` 4 per share
has not been made as yet . 50% of the forfeited shares were reissued at ` 8 per
share as fully paid-up . Pass necessary Journal entries for the
forfeiture and reissue of shares.
Answer:
|
Application |
` |
5 |
|
|
Allotment |
` |
3 |
(1+2) |
|
First and
Final Call |
` |
4 |
|
|
|
|
12 |
(10+2) |
Called-up =
Application + Allotment
= ` 5 + 3 (including premium ` 2)
|
Book of JCV Limited Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|
|
|
|
|
|
Share
Capital A/c (200×6) |
Dr. |
|
1,200 |
|
|
|
Securities
Premium A/c (200×2) |
Dr. |
|
400 |
|
|
|
To Share Forfeiture A/c (200×5) |
|
|
1,000 |
|
|
|
To Calls-in-Arrears A/c (200×3) |
|
|
600 |
|
|
|
(200
shares of ` 10 each
on which ` 8
had called (including ` 2 premium), forfeited for the non-payment of
allotment ` 3
(including ` 2
premium) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
800 |
|
|
|
Share
Forfeiture A/c |
Dr. |
|
200 |
|
|
|
To Share Capital A/c |
|
|
1,000 |
|
|
|
(100
shares of ` 10 each
re-issued at ` 8 per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Forfeiture A/c |
Dr. |
|
300 |
|
|
|
To Capital Reserve |
|
|
300 |
|
|
|
(Amount of
share forfeiture of 100 re-issued shares transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
Working Note
Share
Forfeiture of Re-issued Shares
|
Share
Forfeiture (at the
time of forfeiture) |
Cr. |
5 |
|
|
Share
Forfeiture (at the
time of re-issue) |
Dr. |
2 |
|
|
Balance in Share Forfeiter (after
re-issue) |
Cr. |
3 |
per share |
Capital
Reserve
= Amount of share forfeitureTotal shares forfeited×Shares reissued - Loss on reissue of forfeited shares=1000200×100-100×2 =500-200=300
Question 71:
Pass
necessary journal entries in the books of the company for the following
transactions:
Vishesh Ltd. forfeited 1,000 Equity Shares of ` 10 each
issued at a premium of ` 2 per share
for non-payment of allotment money of ` 5 per share
including premium. The final call of ` 2 per share
was not yet called on these shares. Of the forfeited shares 800 shares were
reissued at ` 12 per share as fully paid-up.
The remaining shares were reissued at ` 11 per
share fully paid-up.
Answer:
|
Journal |
|
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
||
|
|
Equity Share Capital A/c (8×1,000) |
Dr. |
|
8,000 |
|
|
|
|
Securities Premium A/c (2×1,000) |
Dr. |
|
2,000 |
|
|
|
|
To Share
Forfeiture A/c |
|
|
|
5,000 |
|
|
|
To Calls-in-Arrears |
|
|
|
5,000 |
|
|
|
(1,000 shares of ` 10 each issued at premium of ` 2 forfeited for non-payment of
allotment money of ` 5 including premium, final call of ` 2 not yet made) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (12×800) |
Dr. |
|
9,600 |
|
|
|
|
To Share
Capital A/c |
|
|
|
8,000 |
|
|
|
To Securities Premium A/c |
|
|
|
1,600 |
|
|
|
(800 shares reissued at ` 12 fully paid up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (11×200) |
Dr. |
|
2,200 |
|
|
|
|
To Share
Capital A/c |
|
|
|
2,000 |
|
|
|
To Securities Premium A/c |
|
|
|
200 |
|
|
|
(200 shares reissued at ` 11 fully paid up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
5,000 |
|
|
|
|
To Capital
Reserve A/c |
|
|
|
5,000 |
|
|
|
(Profit on
reissue transferred to capital reserve) |
|
|
|
|
|
Question 72:
Gaurav
applied for 5,000 shares of ` 10 each at
a premium of 2.50 per share. But he was allotted only 2,500 shares on pro
rata basis . After having paid ` 3 per share
on application, he did not pay allotment money of ` 4.50 per
share (including premium) and on his subsequent failure to pay the first call
of ` 2 per share, his shares were forfeited. These shares
were reissued at the rate of ` 8 per share
credited as fully paid .
Pass journal entries to record the forfeiture and reissue of shares.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ( `) |
Credit ( `) |
|
|
|
Equity Share Capital A/c (2,500×7) |
Dr. |
|
17,500 |
|
|
|
Security Premium Reserve A/c |
Dr. |
|
3,750 |
|
|
|
To Equity Share Allotment A/c |
|
|
|
3,750 |
|
|
To Equity Share First Call A/c (2,500×2) |
|
|
|
5,000 |
|
|
To Share Forfeited A/c |
|
|
|
12,500 |
|
|
( 2,500 shares forfeited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (2,500×8) |
Dr. |
|
20,000 |
|
|
|
Share Forfeited A/c (2,500×2) |
Dr. |
|
5,000 |
|
|
|
To Equity Share Capital A/c (2,500×10) |
|
|
|
25,000 |
|
|
(Share reissued @ ` 8 per
share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeited A/c (12,500 – 5,000) |
Dr. |
|
7,500 |
|
|
|
To Capital Reserve A/c |
|
|
|
7,500 |
|
|
( Profit on reissue transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN 1: Calculation
of Amount unpaid on Allotment
Amount received on application
(5,000×3) = 15,000
Less: Amount adjusted on application (2,500×3) =
7,500
Excess amount received on
application
= 7,500
Amount due on allotment (2,500×4.5) = 11,250
Amount unpaid on
allotment
= 3,750 (11,250 – 7,500)
Note:
` 7,500 received on application will
be transferred to allotment, but first of all we have to transfer such amount
to Capital A/c and rest would be transferred to Securities Premium A/c. Capital
on allotment is ` 5,000 (2,500×2) that is fully
received and balance amount of advance ` 2,500 will
be transferred to Securities Premium A/c. So, amount of premium unpaid is ` 3,750
(2,500×2.5 –2,500).
Click on Below link for more questions Of Volume-1 of 12th