Page No 8.120:
Question 66:
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 Amount ` |
Credit Amount ` |
|
|
|
|
|
|
|
|
|
|
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
|
|
|
|
|
|
|
|
|
|
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
Page No 8.121:
Question 67:
X Ltd . forfeited 100 shares
of ` 10 each ( ` 8 called-up) issued at a premium of ` 2 per share to Mr. R, 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 Mr .
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 Amount ` |
Credit Amount ` |
|
|
|
|
|
|
|
|
|
|
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
Page No 8.121:
Question 68:
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 Amount ( `) |
Credit Amount ( `) |
|
|
|
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) |
|
|
|
|
Page No 8.121:
Question 69:
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 Amount ` |
Credit Amount ` |
|
|
|
|
|
|
|
|
|
|
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 Forfeitre
(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
Page No 8.121:
Question 70:
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 Amount ` |
Credit Amount ` |
||
|
|
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) |
|
|
|
|
|