Question 65:
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
Question
66: R.P Ltd. forfeited 1,500 shares of Rahim of `10 each issued at a premium of `3 per share for non-payment of allotment and first call money. Rahim had
applied for 3,000 shares. On these shares, amount was payable as follows:
|
On application |
` 3 per
share, |
|
On allotment (including premium) |
` 5 per
share, |
|
On first call |
` 3 per
share, |
|
On final call Balance. |
|
Final call has not
been called up. 1,000 of the forfeited
shares were reissued for ` 8,500 as fully paid-up.
Record the
necessary Journal entries for the above transactions in the books of R.P. Ltd. (CBSE 2020)
Answer:
|
|
|||||
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1500*8 |
Equity
Share Capital A/c |
Dr. |
|
12,000 |
|
|
1500*3 |
Securities
Premium Reserve A/c |
|
|
4,500 |
|
|
1500 |
To Share Forfeiture A/c |
|
|
4,500 |
|
|
1500*5 |
To Share Allotment Call
A/c |
|
|
7,500 |
|
|
1500*3 |
To Share First Call A/c |
|
|
4,500 |
|
|
|
(100
shares of `
10 each forfeited for the non-payment of two calls of ` 2.5 each) |
|
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
8,500 |
|
|
|
Share
Forfeiture A/c |
Dr. |
|
1,500 |
|
|
|
1,000*10 |
To Equity Share Capital
A/c |
|
|
10,000 |
|
|
|
(100
shares of `
10 each reissued at ` 8 per share, fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Forfeiture A/c |
Dr. |
|
|
|
|
|
To Capital Reserve A/c |
|
|
|
|
|
|
(Balance
in Share Forfeiture Account after re-issue of shares, transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
Question 67:
The Hindustan Manufacturing Ltd. had
a total subscribed capital of ` 10,00,000 in Equity Shares of ` 10
each of which ` 7.50 were
called-up. A final call of ` 2.50 was made and all amount paid except two
calls of ` 2.50 each in respect of 100 shares held by D . These shares
were forfeited and reissued at ` 8 per share .
Pass necessary journal entries (including that of cash) to record the transactions of final call , forfeiture of shares and reissue of forfeited shares . Also, prepare the Balance
Sheet of the company.
Answer:
|
Books
of Hindustan Manufacturing Limited |
|||||
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|
|
|
|
|
|
Equity Share Final Call A/c |
Dr. |
|
2,50,000 |
|
|
|
To Equity Share Capital A/c |
|
|
2,50,000 |
|
|
|
(Share Final Call due on 1,00,000
shares at ` 2.5 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,49,750 |
|
|
|
Calls-in-Arrears A/c |
Dr. |
|
250 |
|
|
|
To Equity Share Final Call A/c |
|
|
2,50,000 |
|
|
|
(Share Final Call of `
2.5 per share received from 99,900 shares and 100 shares did not pay it) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
1,000 |
|
|
|
To Share Forfeiture A/c |
|
|
500 |
|
|
|
To Calls-in-Arrears A/c |
|
|
500 |
|
|
|
(100 shares of `
10 each forfeited for the non-payment of two calls of `
2.5 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
800 |
|
|
|
Share Forfeiture A/c |
Dr. |
|
200 |
|
|
|
To Equity Share Capital A/c |
|
|
1,000 |
|
|
|
(100 shares of `
10 each reissued at ` 8 per share, fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
300 |
|
|
|
To Capital Reserve A/c |
|
|
300 |
|
|
|
(Balance in Share Forfeiture
Account after re-issue of shares,
transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
As per the Schedule III of
Companies Act, 2013, the Company's
Balance Sheet is presented as follows.
|
Hindustan
Manufacturing Ltd. |
||
|
Balance
Sheet |
||
|
Particulars |
Note
No. |
(`) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
a. Share Capital |
1 |
10,00,000 |
|
b. Reserves and Surplus |
2 |
300 |
|
2. Non-Current Liabilities |
|
|
|
3. Current Liabilities |
|
|
|
Total |
|
10,00,300 |
|
|
|
|
|
II. Assets |
|
|
|
1. Non-Current Assets |
|
|
|
2. Current Assets |
|
|
|
a. Cash and Cash Equivalents |
3 |
10,00,300 |
|
Total |
|
10,00,300 |
|
|
|
|
NOTES TO ACCOUNTS
|
|
||
|
Note
No. |
Particulars |
(`) |
|
1 |
Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
1,00,000 shares of ` 10 each |
10,00,000 |
|
|
Issued Share Capital |
|
|
|
1,00,000 shares of `
10 each |
10,00,000 |
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
1,00,000 shares of `
10 each |
10,00,000 |
|
|
|
|
|
2 |
Reserves and Surplus |
|
|
|
Capital Reserve |
300 |
|
|
|
|
|
3 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
10,00,300 |
|
|
|
|
Working Notes:
|
Share Forfeiture Credit (100
shares × ` 5 each) |
500 |
|
|
Less: Share
Forfeiture Debit (100 share × `
2 each) |
200 |
Loss on re-issue |
|
Balance in Share Forfeiture
Account after re-issue |
300 |
|
Capital Reserve = Balance in Share
Forfeiture Account after re-issue = `
300
Question 68:
Star Ltd. forfeited 500 Equity
Shares of ` 100 each for non-payment of first call of ` 30 per share . The final
call of ` 10 per share was not yet made. Out of these, 60% shares were reissued for `
39,000 fully paid. journalise the forfeiture and reissue of shares.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
Equity Share Capital A/c
(500×90) |
Dr. |
|
45,000 |
|
|
|
To Equity Share 1st
Call A/c (500×30) |
|
|
|
15,000 |
|
|
To Share Forfeited A/c
(500×60) |
|
|
|
30,000 |
|
|
(500 equity shares forfeited for
non-payment of final call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (300×130) |
Dr. |
|
39,000 |
|
|
|
To
Equity Share Capital A/c (300×100) |
|
|
|
30,000 |
|
|
To
Security Premium Reserve A/c (300×30) |
|
|
|
9,000 |
|
|
(300 shares are reissued @130 per
share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeited A/c |
Dr. |
|
18,000 |
|
|
|
To Capital Reserve A/c |
|
|
|
18,000 |
|
|
(Prof it on reissue of 300 shares transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Working Note:
Amount transferred
to Capital Reserve
Shares Re-issued = 300
Shares Forfeited = 500
Amount forfeited in respect of 300 shares = Amount Forfeited
× Shares Re-issued Shares Forfeited
= 30,000×300500=18,000
Ts Grewal Solution 2024-2025
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Class 12 / Volume – II