Page No 8.121:
Question 71:
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 Amount ( `) |
Credit Amount ( `) |
|
|
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).
Page No 8.121:
Question 72:
'Telecom
Ltd.' issued 20,000 Equity Shares of ` 10 each at a premium
of ` 5 per share, payable as: ` 7
(including premium) on application, ` 5 on
allotment and the balance after three months of allotment. A shareholder to
whom 200 shares were allotted failed to pay the allotment and call money and
his shares were forfeited. 160 of the forfeited shares were reissued for `
1,600.
Give necessary entries in company's Journal and the Balance Sheet.
Answer:
Issued
and Applied 20,000 equity shares of ` 10 each
at a premium of ` 5
Application |
` |
7 |
(2+5) |
Allotment |
` |
5 |
|
First
and Final Call |
` |
3 |
|
|
|
15 |
(10+5)
per share |
Books of Telecom Ltd. |
|||||
Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
140,000 |
|
|
To Equity Share
Application A/c |
|
|
140,000 |
|
|
(Share
application money received for 20,000 shares at ` 7
each) |
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Application A/c |
Dr. |
|
1,40,000 |
|
|
To Equity Share Capital
A/c |
|
|
40,000 |
|
|
To Securities Premium
A/c |
|
|
1,00,000 |
|
|
(Share
application money of 20,000 shares transferred Share Capital at `25
per share and Securities Premium at ` 5 per share) |
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Allotment A/c |
Dr. |
|
1,00,000 |
|
|
To Equity Share Capital
A/c |
|
|
1,00,000 |
|
|
(Share
allotment due on 20,000 shares at ` 5 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
99,000 |
|
|
Calls-in-Arrears
A/c |
Dr. |
|
1,000 |
|
|
To Equity Share
Allotment A/c |
|
|
1,00,000 |
|
|
(Share
allotment received on 19,800 shares and a holder of 200 shares failed to pay
it) |
|
|
|
|
|
|
|
|
|
|
|
Equity
Share First and Final call A/c |
Dr. |
|
60,000 |
|
|
To Equity Share Capital
A/c |
|
|
60,000 |
|
|
(First
and final call due on 20,000 shares at ` 3 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
59,400 |
|
|
Calls-in-Arrears
A/c |
Dr. |
|
600 |
|
|
To Equity Share First
and Final Call A/c |
|
|
60,000 |
|
|
(First
and final call received on 19,800 shares and a holder of 200 shares failed to
pay it) |
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Capital A/c |
Dr. |
|
2,000 |
|
|
To Share Forfeiture A/c
( ` 2 × 200 Shares) |
|
|
400 |
|
|
To Calls-in-Arrears A/c |
|
|
16,00 |
|
|
(200
shares of ` 10
each forfeited for the non-payment amount due ` 8 per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
1,600 |
|
|
To Equity Share Capital
A/c |
|
|
1,600 |
|
|
(160
shares of ` 10
each re-issued for the sum of ` 1,600) |
|
|
|
|
|
|
|
|
|
|
|
Share
Forfeiture A/c |
Dr. |
|
320 |
|
|
To Capital Reserve A/c |
|
|
320 |
|
|
(Balance
in Share Forfeiture of 160 re-issued shares transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
As per the Schedule III of Companies Act, 2013, the
Company's Balance Sheet is presented as follows.
A Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount ( `) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
1,99,680 |
b. Reserves and Surplus |
2 |
1,00,320 |
2. Non-Current
Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
3,00,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash
Equivalents |
3 |
3,00,000 |
Total |
|
3,00,000 |
|
|
|
NOTES
TO ACCOUNTS
|
|||
Note No. |
Particulars |
Amount ( `) |
|
1 |
Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
…… Equity Shares of ` 10
each |
- |
|
|
Issued Share Capital |
|
|
|
20,000 Equity
Shares of ` 10
each |
2,00,000 |
|
|
Subscribed, Called-up
and Paid-up Share Capital |
|
|
|
19,960 Equity Shares of
` 10
each |
1,99,600 |
|
|
Add:
Shares Forfeited (40 shares × ` 2) |
80 |
1,99,680 |
|
|
|
|
2 |
Reserves and Surplus |
|
|
|
Securities Premium |
1,00,000 |
|
|
Capital Reserve |
320 |
1,00,320 |
|
|
|
|
3 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
3,00,000 |
|
|
|
|
Working
Notes: 1. Share Forfeiture of Re-issued Shares
Share
Forfeiture (at
the time of forfeiture after deducting premium) |
Cr. |
2 |
(7
– 5) |
Less: Share Forfeiture (at the time of re-issue) |
Dr. |
NIL |
|
Balance
in Share Forfeiture after re-issue |
Cr. |
2 |
per
share |
Capital
Reserve = Balance in Share Forfeiture after reissue (per share) ×
Number of Shares Re-issued = ` 2 × 160 = ` 320
2.
Calculation of balance remaining in Share Forfeiture Account (to be shown in the Balance Sheet)
Share
Forfeiture (at the time of forfeiture of 200 shares) |
= |
400 |
Debit |
Less: Share Forfeiture (at the time re-issue of 160
shares) |
= |
(320) |
Credit |
Balance
in Share Forfeiture Account (for 40 shares
which are not re-issued) |
= |
`80 |
Debit |
Page No 8.121:
Question 73:
Panasonic Ltd. was formed on 1st April, 2010 with an authorised capital of ` 2,00,000 , divided into
2,000 Equity Shares of ` 100 each. 1,000 shares
were issued as fully paid to the vendors of building for payment of the
purchase consideration. The remaining 1,000 shares were offered or public
subscription at a premium of ` 5 per share payable as:
On application |
` 10 per
share, |
On allotment |
` 25 per
share(including premium), |
On first call |
` 40 per share, |
On final call |
` 30 per
share. |
Applications were received for 900 shares which were duly allotted and the
allotment money was received in full . At the time of
the first call, a shareholder who held 100 shares failed to pay the first call
money and his shares were forfeited. These shares were reissued @ ` 60
per share , ` 70 per share paid-up.
Final call has not been made.
You are required to
(i) give necessary journal entries to record the
above transactions and
(ii) show how share capital would appear in the Balance Sheet of the
company.
Answer:
Authorised
Capital: 2,000 equity shares at ` 100 each
Issued
Capital:
1,000
equity shares at ` 100 each to the vendor of the
building
1,000
equity shares at ` 100 each with a premium ` 5 to
the public
Applied
by public: 900 equity shares
Payable
by public as:
Application |
` |
10 |
|
Allotment |
` |
25 |
(20+5) |
First
Call |
` |
40 |
|
Called-up |
|
75 |
(70+5) |
Final
Call |
` |
30 |
|
|
` |
105 |
(100+5) |
Books of Panasonic Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
|
|
|
|
|
|
Building
A/c |
Dr. |
|
1,00,000 |
|
|
To Vendor A/c |
|
|
1,00,000 |
|
|
(Building
purchased from the vendor) |
|
|
|
|
|
|
|
|
|
|
|
Vendor
A/c |
Dr. |
|
1,00,000 |
|
|
To Equity Share Capital
A/c |
|
|
1,00,000 |
|
|
(1,000
equity shares of ` 100
each issued to the vendor of building) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
9,000 |
|
|
To Equity Share
Application A/c |
|
|
9,000 |
|
|
(Share
application money received for 900 shares at ` 10 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Application A/c |
Dr. |
|
9,000 |
|
|
To Equity Share Capital |
|
|
9,000 |
|
|
(Share
application money of 900 shares at ` 10 each transferred to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Allotment A/c |
Dr. |
|
22,500 |
|
|
To Securities Premium |
|
|
4,500 |
|
|
To Equity Share Capital
A/c |
|
|
18,000 |
|
|
(Share
allotment due on 900 shares at ` 25 each including ` 5 premium) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
22,500 |
|
|
To Equity Share
Allotment A/c |
|
|
22,500 |
|
|
(Share
allotment money received on 900 shares at ` 25 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity
Share First Call A/c |
Dr. |
|
36,000 |
|
|
To Equity Share Capital
A/c |
|
|
36,000 |
|
|
(First
call due on 900 shares at ` 40 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
32,000 |
|
|
Calls-in-Arrears
A/c |
|
4,000 |
|
|
|
To Equity Share
First-call A/c |
|
|
36,000 |
|
|
(First
call received on 800 shares and a holder of 100 shares failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Capital A/c |
Dr. |
|
7,000 |
|
|
To Share Forfeiture A/c |
|
|
3,000 |
|
|
To Calls-in-Arrears A/c |
|
|
4,000 |
|
|
(100
shares of ` 100
each, ` 70
called-up forfeited for the non-payment of ` 40) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
6,000 |
|
|
Share
Forfeiture A/c |
Dr. |
|
1,000 |
|
|
To Equity Share Capital
A/c |
|
|
7,000 |
|
|
(100
shares of ` 100
each, re-issued at ` 60
per share as ` 70
paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share
Forfeiture A/c |
Dr. |
|
2,000 |
|
|
To Capital Reserve A/c |
|
|
2,000 |
|
|
(Balance
in Share Forfeiture the Account after re-issue transferred to Capital
Reserve) |
|
|
|
|
|
|
|
|
|
As per the Schedule III of Companies Act 2013, the
Company's Balance Sheet is presented as follows.
Panasonic Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount ( `) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
1,63,000 |
b. Reserves and Surplus |
2 |
6,500 |
2. Non-Current
Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
1,69,500 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
a. Fixed Assets |
|
|
i. Tangible Assets |
3 |
1,00,000 |
2. Current Assets |
|
|
a. Cash and Cash
Equivalents |
4 |
69,500 |
Total |
|
1,69,500 |
|
|
|
NOTES
TO ACCOUNTS
|
|||
Note No. |
Particulars |
Amount ( `) |
|
1 |
Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
2,000 Equity Shares of ` 100
each |
2,00,000 |
|
|
Issued Share Capital |
|
|
|
2,000 Equity Shares of ` 100
each |
2,00,000 |
|
|
Subscribed, Called-up
and Paid-up Share Capital |
|
|
|
1,000 Equity Shares of ` 100
each(for consideration other than cash) |
1,00,000 |
|
|
900 Equity Shares
of ` 100
each, ` 70
Called-up |
63,000 |
1,63,000 |
|
|
|
|
2 |
Reserves and Surplus |
|
|
|
Securities Premium |
4,500 |
|
|
Capital Reserve |
2,000 |
6,500 |
|
|
|
|
3 |
Tangible Assets |
|
|
|
Building |
1,00,000 |
|
|
|
|
|
4 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
69,500 |
|
|
|
|
Working Notes:
Share
Forfeiture (at the time of forfeiture) |
3,000 |
Credit |
Less: Share Forfeiture (at the time of re-issue) |
1,000 |
Debit |
Balance
in Share Forfeiture (after re-issue) |
2,000 |
Credit |
Capital
Reserve = Balance in Share Forfeiture (after re-issue) = ` 2,000
Page No 8.121:
Question 74:
VXN Ltd. invited applications for issuing 50,000 equity shares
of ` 10 each at a
premium of ` 8 per share . The
amount was payable as follows:
On Application |
` 4 per
share (Including ` 2
premium); |
||
On Allotment |
` 6
per share (Including ` 3
premium); |
||
On First Call |
` 5
per share (Including `
1 premium); and |
||
On Second and Final Call |
Balance Amount |
|
|
The issue was fully subscribed . Gopal,
a shareholder holding 200 shares, did not pay the
allotment money and Madhav, a holder of 400 shares,
paid his entire share money along with the allotment money. Gopal's
shares were immediately forfeited after allotment .
Afterwards, the first call was made. Krishna, a holder of 100 shares , failed to pay the first call money and Girdhar, a holder of 300 shares, paid the second call money
also along with the first call . Krishna's shares were forfeited immediately
after the first call. Second and final call was made afterwards and was duly received . All the forfeited shares were reissued
at ` 9 per share
fully paid-up.
Pass necessary journal entries for the above transactions in the books of the
company.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit |
Credit |
|
|
Bank A/c (50,000 × 4) |
Dr. |
|
2,00,000 |
|
|
To Equity Share Application A/c |
|
|
|
2,00,000 |
|
(Application money received on 50,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
2,00,000 |
|
|
To Equity Share Capital A/c |
|
|
|
1,00,000 |
|
To Securities Premium Reserve A/c |
|
|
|
1,00,000 |
|
(Application money transferred to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c (50,000 × 6) |
Dr. |
|
3,00,000 |
|
|
To Equity Share Capital A/c |
|
|
|
1,50,000 |
|
To Securities Premium Reserve A/c |
|
|
|
1,50,000 |
|
(Allotment money due on 50,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (49,800 × 6) + (400 × 8) |
Dr. |
|
3,02,000 |
|
|
To Equity Share Allotment A/c (49,800 × 5) |
|
|
|
2,98,800 |
|
To Calls–in–Advance A/c (400 × 8) |
|
|
|
3,200 |
|
(Allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c (200 × 5) |
Dr. |
|
1,000 |
|
|
Securities Premium Reserve A/c (200 × 3) |
Dr. |
|
600 |
|
|
To Equity Share Allotment A/c (200 × 6) |
|
|
|
1,200 |
|
To Equity Share Forfeiture A/c (200 × 2) |
|
|
|
400 |
|
(200 shares forfeited for non–payment of allotment money
including premium of ` 3) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share First Call A/c (49,800 × 5) |
Dr. |
|
2,49,000 |
|
|
To Equity Share Capital A/c |
|
|
|
1,99,200 |
|
To Securities Premium Reserve A/c |
|
|
|
49,800 |
|
(Call money due on 49,800 shares) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (49,700 × 5) − 2,000 + 900 |
Dr. |
|
2,47,400 |
|
|
Calls–in–Advance A/c (400 × 5) |
Dr. |
|
2,000 |
|
|
To Calls–in–Advance A/c (300 × 3) |
|
|
|
900 |
|
To Equity Share First Call A/c |
|
|
|
2,48,500 |
|
(Call money received) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c (100 × 9) |
Dr. |
|
900 |
|
|
Securities Premium Reserve A/c (100 × 1) |
|
|
100 |
|
|
To Equity Share First Call A/c (100 × 5) |
|
|
|
500 |
|
To Equity Share Forfeiture A/c (100 × 5) |
|
|
|
500 |
|
(100 shares forfeited for non-payment of call money) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Second and Final Call A/c (49,700 × 3) |
Dr. |
|
1,49,100 |
|
|
To Equity Share Capital A/c |
|
|
|
49,700 |
|
To Securities Premium A/c |
|
|
|
99,400 |
|
(Call money due on 49,700 shares) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,47,000 |
|
|
Calls-in-Advance A/c (1,200 + 900) |
|
|
2,100 |
|
|
To Equity Share Second and Final Call A/c |
|
|
|
1,49,100 |
|
(Call money received on shares) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (300 × 9) |
Dr. |
|
2,700 |
|
|
Equity Share Forfeiture A/c |
|
|
300 |
|
|
To Equity Share Capital A/c |
|
|
|
3,000 |
|
(300 shares re–issued at ` 9 per share) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Forfeiture A/c (400 + 500 − 300) |
Dr. |
|
600 |
|
|
To Capital Reserve A/c |
|
|
|
600 |
|
(Profit on re-issue transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Page No 8.122:
Question 75:
Sukanya
Ltd. invited applications for issuing 1,00,000 equity
shares of
` 10 each. The shares were issued
at a premium of ` 20 per share. The amount was payable as
follows:
On Application and Allotment |
— |
` 14 per
share (including premium of ` 10), |
On First Call |
— |
` 8
per share (including premium of
`
5), |
On Final Call |
— |
`
8
per share (including premium of
`
5). |
Applications for 96,000 shares were received. Rohit , a shareholder
holding 7,000 shares, failed to pay both the calls and Namit
, a holder of 5,000 shares , did not pay the final call.
Shares of Rohit and Namit
were forfeited . Of the forfeited shares 8,000 shares
including all the shares of Rohit
were reissued to Reena at ` 8 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of Sukanya Ltd.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
|
|
Bank
A/c (96,000×14) |
Dr. |
|
13,44,000 |
|
|
To Equity Share Application and Allotment A/c |
|
|
|
13,44,000 |
|
(
Application money received) |
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Application and Allotment A/c |
Dr. |
|
13,44,000 |
|
|
To Equity Share Capital A/c (96,000×4) |
|
|
|
3,84,000 |
|
To Security Premium Reserve A/c (96,000×10) |
|
|
|
9,60,000 |
|
(Application
money adjusted to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
Equity
Share First Call A/c (96,000×8) |
Dr. |
|
7,68,000 |
|
|
To Equity Share Capital A/c (96,000×3) |
|
|
|
2,88,000 |
|
To Security Premium Reserve A/c (96,000×5) |
|
|
|
4,80,000 |
|
(First
call money due) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c (7,68,000 – 56,000) |
Dr. |
|
7,12,000 |
|
|
To Equity Share First Call A/c |
|
|
|
7,12,000 |
|
(First
call money received) |
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Second Call A/c (96,000×8) |
Dr. |
|
7,68,000 |
|
|
To Equity Share Capital A/c (96,000×3) |
|
|
|
2,88,000 |
|
To Security Premium Reserve A/c (96,000×5) |
|
|
|
4,80,000 |
|
(Second
call money due) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c (7,68,000 – 56,000 – 40,000) |
Dr. |
|
6,72,000 |
|
|
To Equity Share Second Call A/c |
|
|
|
6,72,000 |
|
(Second
call money received) |
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Capital A/c |
Dr. |
|
1,20,000 |
|
|
Security
Premium Reserve A/c (7,000×10
+ 5,000×5) |
Dr. |
|
95,000 |
|
|
To Equity Share First Call A/c |
|
|
|
56,000 |
|
To Equity Share Second Call A/c |
|
|
|
96,000 |
|
To Shares Forfeited A/c (7,000×4
+ 5,000×7) |
|
|
|
63,000 |
|
(Shares
Forfeited) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c (8,000×8) |
Dr. |
|
64,000 |
|
|
Shares
Forfeited A/c (8,000×2) |
Dr. |
|
16,000 |
|
|
To Equity Share Capital A/c |
|
|
|
80,000 |
|
(Shares
Reissued) |
|
|
|
|
|
|
|
|
|
|
|
Shares
Forfeited A/c |
Dr. |
|
19,000 |
|
|
To Capital Reserve A/c |
|
|
|
19,000 |
|
(Profit
on Reissue transferred to Capital Reserve A/c) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Amount transferred to Capital Reserve
Amount
forfeited on reissued shares of Rohit = ` 28,000
Amount
forfeited on reissued shares of Namit=Amount Forfeited×Shares Re-issuedShares Forfeited
=35,000×1,0005,000=7,000
Total
amount forfeited on reissued shares = 28,000 + 7,000 = `
35,000
Amount
transferred to Capital Reserve = 35,000 – 16,000
= ` 19,000