Question 61:
Alfa Ltd. forfeited 900 Equity Shares of ` 100 each for the non-payment of allotment money of ` 30 per share and the first call of ` 20 per share. The second and final call of ` 25 per share has not been made . The forfeited shares were
reissued for ` 90 per share , `
75 paid-up. Journalise the above.
Answer:
|
Application |
25 |
Balancing Figure |
|
Allotment |
30 |
|
|
First Call |
20 |
|
|
Final Call |
25 |
Un-called |
|
|
100 |
|
Called-up ` 75 per share
|
Books
of X Limited Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit
` |
Credit
` |
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c (900×75) |
Dr. |
|
67,500 |
|
|
|
To Share Forfeiture A/c |
|
|
22,500 |
|
|
|
To Calls-in-Arrears A/c |
|
|
45,000 |
|
|
|
(900 shares of `
100 each ` 75 called-up, forfeited for the non-payment sum of allotment ` 30 and first call `
20 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
81,000 |
|
|
|
To Share Capital A/c |
|
|
67,500 |
|
|
|
To Securities Premium A/c |
|
|
13,500 |
|
|
|
(900 shares of `
100 each re-issued as ` 75 paid-up for `
90 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
22,500 |
|
|
|
To Capital Reserve A/c |
|
|
22,500 |
|
|
|
(Balance of Share Forfeiture Account after re-issue,
transferred to Capital Reserve Account) |
|
|
|
|
|
|
|
|
|
|
|
Working Notes-
|
Share forfeiture account credit |
= |
Share application money received
for 900shares |
|
|
= |
900×25 `. |
|
|
= |
22,500 |
|
Calculation
of capital reserve |
|
|
|
Share forfeiture account credit |
= |
22,500 |
|
Share forfeiture account debit |
= |
Nil |
|
Capital reserve |
= |
22,500 |
Question
62:
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 63: 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 64:
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
Ts Grewal Solution 2024-2025
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Class 12 / Volume – II