Question
65:
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 66: On 1st May, 2023, 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
₹ |
|
|
2023 |
|
|
|
|
|
|
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 |
|
|
|
Question 67:
The Directors of Maharana Ltd resolved on 1st May, 2023 that 2,000
Equity Shares of ₹10 each , ₹7.50 paid be
forfeited for non-payment of final call
of ₹2.50 . On 10th June, 2023, 1,800 of these shares were reissued for ₹6
per share . Give necessary Journal entries.
Answer:
|
Books
of M Limited Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ₹ |
Credit
₹ |
|
|
2023 |
|
|
|
|
|
|
May
01 |
Equity Share Capital A/c |
Dr. |
|
20,000 |
|
|
|
To Share Forfeiture A/c |
|
|
15,000 |
|
|
|
To Call-in-Arrears A/c |
|
|
5,000 |
|
|
|
(2,000 shares of ₹10 each forfeited for non-payment of final call ₹2.5 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
June
10 |
Bank A/c |
Dr. |
|
10,800 |
|
|
|
Share Forfeiture A/c |
Dr. |
|
7,200 |
|
|
|
To Share Capital A/c |
|
|
18,000 |
|
|
|
(1,800 shares of ₹10 each re-issued at ₹6 per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
6,300 |
|
|
|
To Capital Reserve A/c |
|
|
6,300 |
|
|
|
(Balance in Shares Forfeiture
Account of 1,800 re-issue,
transferred to Capital Reserve Account) |
|
|
|
|
|
|
|
|
|
|
|
Working Notes:
|
Share
Forfeiture |
7.5 |
Cr. |
|
Share
Forfeiture |
4 |
Dr. |
|
Balance in Share Forfeiture
Account after re-issue |
3.5 |
Cr. per share |
Capital Reserve = No. of Shares reissued ×
Balance in Share Forfeiture Account after reissue (per share)
= 1,800 × ₹3.5 (per
share)
= ₹6,300
Question 68:
Sunshine Ltd. issued 20,000 shares of ₹100
each payable ₹25 per share on application , ₹25 per
share on allotment and the balance in two calls of ₹25 each.
The company did not make the final call of ₹25 per share. All
the money was duly received with the exception of the amount due on the first call on
400 shares held by Mr. Modi. The Board of Directors
forfeited these shares and subsequently reissued them @ ₹75 per
share paid-up for a sum of ₹28,000.
Journalise the above transactions and prepare Share
Capital Account.
Answer:
Issued and applied capital 20,000
shares of ₹100 each
Payable as:
|
Application |
₹ |
25 |
|
|
Allotment |
₹ |
25 |
|
|
First Call |
₹ |
25 |
|
|
Called-up |
₹ |
75 |
per share |
|
Final Call |
₹ |
25 |
|
|
|
₹ |
100 |
per share |
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit
(₹) |
Credit (₹) |
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
5,00,000 |
|
|
|
To Share Application A/c |
|
|
5,00,000 |
|
|
|
(Share application money received
for 20,000 shares at ₹25 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
5,00,000 |
|
|
|
To Share Capital A/c |
|
|
5,00,000 |
|
|
|
(Application money transferred to
Share Capital Account) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
5,00,000 |
|
|
|
To Share Capital A/c |
|
|
5,00,000 |
|
|
|
(Share Allotment due on 20,000
shares at ₹25 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
5,00,000 |
|
|
|
To Share Allotment A/c |
|
|
5,00,000 |
|
|
|
(Allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share First Call A/c |
Dr. |
|
5,00,000 |
|
|
|
To Share Capital A/c |
|
|
5,00,000 |
|
|
|
(Share First Call due on 20,000
shares of ₹25 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
4,90,000 |
|
|
|
Calls-in-Arrears A/c |
Dr. |
|
10,000 |
|
|
|
To Share First Call A/c |
|
|
5,00,000 |
|
|
|
(Share First Call ₹25 per
share received on 19,600 shares and a holder of 400 shares did not pay it) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Capital A/c |
Dr. |
|
30,000 |
|
|
|
To Share Forfeiture A/c |
|
|
20,000 |
|
|
|
To Calls-in-Arrears A/c |
|
|
10,000 |
|
|
|
(400 shares of ₹100 each, ₹75 called-up, forfeited for the non-payment of Share First Call ₹25 per
share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
28,000 |
|
|
|
Share Forfeiture A/c |
Dr. |
|
2,000 |
|
|
|
To Share Capital A/c |
|
|
30,000 |
|
|
|
(400 shares of ₹100 each, ₹75 paid-up, reissued for the sum of ₹28,000) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
18,000 |
|
|
|
To Capital Reserve A/c |
|
|
18,000 |
|
|
|
(Balance in share forfeiture after
re-issue, transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
|
Share
Capital Account |
|||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
(₹) |
Particulars |
(₹) |
||
|
|
|
|
|
||
|
Share Forfeiture |
20,000 |
Share Application |
5,00,000 |
||
|
Calls-in-Arrears |
10,000 |
Share Allotment |
5,00,000 |
||
|
|
|
Share First Call |
5,00,000 |
||
|
|
|
Bank |
28,000 |
||
|
Balance c/d |
|
Share Forfeiture |
2,000 |
||
|
|
|
|
|
||
|
|
15,30,000 |
|
15,30,000 |
||
|
|
|
|
|
||
Working Note-
|
Share Forfeiture Credit |
20,000 |
|
Less:
Share Forfeiture Debit |
2,000 |
|
Balance in Share Forfeiture
Account after re-issue |
18,000 |
Capital Reserve = Balance in Share
Forfeiture Account after re-issue
= ₹18,000
Ts Grewal Solution 2025-2026
Click below for more Questions
Class 12 / Volume – 2
Chapter 9- Company Accounts- Accounting for Share Capital
Question No. 1 To 4
Question No. 5 To 8
Question No. 9 To 12
Question No. 13 To 16
Question No. 17 To 20
Question No. 21 To 24
Question No. 25 To 28
Question No. 29 To 32
Question No. 33 To 36
Question No. 37 To 40
Question No. 41 To 44
Question No. 45 To 48
Question No. 49 To 52
Question No. 53 To 56
Question No. 57 To 60
Question No. 61 To 64
Question No. 65 To 68
Question No. 69 To 72
Question No. 73 To 76
Question No. 77 To 80
Question No. 81 To 84
Question No. 85 To 88
Question No. 89 To 92
Question No. 93 To 96
Question No. 97 To 100
Question No. 101 To 104
Question No. 105 To 108
Question No. 109 To 112
Question No. 113