Question 65:
Computer Mart Ltd. forfeited 1,000 Equity Shares of ₹50 each issued at 10% premium on which allotment money of ₹15 per equity share (including premium) and first all of ₹15 per share were not received, the second and final call of ₹10 per equity share was not yet called.
Calculate 'Discount Allowed or Premium Received' and 'Amount transferred to Capital Reserve' on reissue of shares as fully paid-up in each of the following cases:
Case 1. If these shares were reissued as ₹40 paid-up for ₹45 per share.
Case 2. If these shares were reissued as ₹40 paid-up for ₹40 per share.
Case 3. If these shares were reissued as ₹40 paid-up for ₹35 per share.
Case 4. If these shares were reissued as ₹40 paid-up for ₹25 per share.
Case 5. If these shares were reissued at ₹35 per share as fully paid-up.
Answer:
Case 1. If these shares were reissued as ₹40 paid-up for ₹45 per share.
Premium = 40- 45= 5
Total premium received = 1,000×5=5,000
Therefore, Premium received - ₹5,000
Amount forfeited ₹15,000,
Therefore, Amount transferred to Capital Reserve - ₹15,000;
Case 2. If these shares were reissued as ₹40 paid-up for ₹40 per share.
Premium or Discount = 40 – 40 = Nil
Therefore, Discount or Premium - Nil
Amount forfeited = ₹15,000:
Therefore, Amount transferred to Capital Reserve - ₹15,000:
Case 3. If these shares were reissued as ₹40 paid-up for ₹35 per share.
Discount = 40- 35= 5
Total discount = 1,000×5=5,000
Therefore, Discount Allowed - ₹5,000
Balance in Amount forfeited after discount = ₹15,000-₹5,000 = ₹10,000;
Therefore, Amount transferred to Capital Reserve - ₹10,000;
Case 4. If these shares were reissued as ₹40 paid-up for ₹25 per share.
Discount = 40- 25= 15
Total discount = 1,000×15=15,000
Therefore, Discount Allowed - ₹15,000
Balance in Amount forfeited after discount = ₹15,000-₹15,000 = Nil;
Therefore, Amount transferred to Capital Reserve - Nil;
Case 5. If these shares were reissued at ₹35 per share as fully paid-up.
Discount = 50- 35= 15
Total discount = 1,000×15=15,000
Discount Allowed - ₹15,000
Balance in Amount forfeited after discount = ₹15,000-₹15,000 = Nil;
Amount transferred to Capital Reserve - Nil
Question 66:
Dell Ltd. forfeited 2,000 Equity Shares of ₹50 each issued at 10% premium on which allotment money of ₹15 per equity share (including premium) and first call of ₹15 per share were not received, the second and final call of 10 per equity share was not yet called.
Calculate 'Discount Allowed or Premium Received' and 'Amount transferred to Capital Reserve' on reissue of shares as fully paid-up in each of the following cases: ₹45 per share.
Case 1. If 200 of these shares were reissued as ₹40 paid-up for ₹45 per share.
Case 2. If 200 of these shares were reissued as ₹40 paid-up for ₹40 per share.
Case 3. If 200 of these shares were reissued as ₹40 paid-up for ₹35 per share.
Case 4. If 200 of these shares were reissued as ₹40 paid-up for ₹25 per share.
Case 5. If 200 of these shares were reissued at ₹35 per share as fully paid-up.
Answer:
Case 1. If 200 of these shares were reissued as ₹40 paid-up for
Premium received - ₹1,000
And Amount transferred to Capital Reserve -₹3.000-
Case 2. If 200 of these shares were reissued as ₹40 paid-up for ₹40 per share.
Discount or Premium - Nil
And Amount transferred to Capital Reserve - ₹3,000.
Case 3. If 200 of these shares were reissued as ₹40 paid-up for ₹35 per share.
Discount Allowed - ₹1,000
And Amount transferred to Capital Reserve - ₹2,000
Case 4. If 200 of these shares were reissued as ₹40 paid-up for ₹25 per share.
Case 4: Discount Allowed₹3,000
And Amount transferred to Capital Reserve - Nil.
Case 5. If 200 of these shares were reissued at ₹35 per share as fully paid-up.
Discount Allowed₹3,000
And Amount transferred to Capital Reserve - Ni1
Question 67:
What amount of gain on reissue will be transferred to Capital Reserve under following situations?
(i) 3,000 shares of ₹10 each of Rakesh were forfeited by crediting ₹5,000 to Forfeited Shares Account.
Out of these, 1,800 shares were reissued to Mohan for ₹9 per share as fully paid-up.
(ii) Z Ltd. forfeited 20 shares of ₹100 each (₹60 called-up) issued at par to Shiv on which he paid ₹20 per share. Out of these, 15 shares were reissued to Rajesh as ₹60 paid-up for ₹45 per share.
Answer:
|
Situations |
Gain on Re-Issue of forfeited shares |
|
1 |
₹1200 |
|
2 |
₹75 |
Notes :
Case 1: 1,800 shares were reissued to Mohan at ₹1 discount
Total discount on 1,800 shares were ₹1,800
Amount forfied for 1,800 shares is ₹3,000
Amount left after discount to be transferring to capital reserve is ₹3,000-1,800=₹1,200
Case 2: discount per share is ₹5 on re-issue
Total discount on re-issue is 15×15=225
Amount forfied for 15 shares is 15×20=300
Amount left after discount to be transferring to capital reserve is ₹300-225=₹75
Forfeiture and Reissue of Shares which were issued at Par
Question 68:
A company forfeited 4,000 shares of ₹10 each fully called-up, on which application money of ₹3 each has been paid. Out of these, ₹2,000 shares were reissued as fully paid-up for ₹18,000.
Pass necessary Journal entries for above transactions. (CBSE 2023)
Answer:
|
Journal |
||||
|
Date |
Particulars |
L.F. |
Debit (₹) |
Credit (₹) |
|
|
Share Capital A/c (4,000×10) Dr. |
|
40,000 |
|
|
|
To Forfeited Shares A/c (4,000×3) |
|
|
12,000 |
|
|
To Calls-In-Arrears A/c (4,000×7) |
|
|
28,000 |
|
|
(Being share forfeited for non-Payment of remaining Calls of 400 shares) |
|
|
|
|
|
Bank A/c Dr. |
|
18,000 |
|
|
|
Forfeited Shares A/c Dr. |
|
2,000 |
|
|
|
To Share Capital A/c (2,000×10) |
|
|
20,000 |
|
|
(Being 2,000 shares forfeited reissued as fully paid-up) |
|
|
|
|
|
Forfeited Shares A/c Dr. |
|
4,000 |
|
|
|
To Capital Reserve A/c |
|
|
4,000 |
|
|
(being balance in Forfeited Shares account of reissued shares transferred to Capital Reserve 12,000×2,000÷4,000= 6,000-2,000=4,000) |
|
|
|
|
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|
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Ts Grewal Solution 2026-2027
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Class 12 / Volume – 2
Chapter 1- Company Accounts- Accounting for Share Capital
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