Question 77:
Give
necessary journal entries:
(i) The Directors of Devendra Ltd. resolved on 1st January, 2010 that Equity
Shares of ₹10 each, ₹8 paid-up be forfeited for
non-payment of final call of ₹2. On 1st February, 60 of these
shares were reissued @ ₹7 per share as fully paid-up.
(ii) Virender Limited forfeited 20 shares of ₹100 each(₹60
called-up) issued at par to Mukesh on which he had paid ₹20 per
share . Out of these, 15 shares were reissued to Sanjeev as ₹60
paid-up for ₹45 per share.
Answer:
|
(i) |
Book of Devendra Limited |
|||||
|
Journal |
||||||
|
Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
||
|
2010 |
|
|
|
|
||
|
Jan. 01 |
Equity Share Capital A/c |
Dr. |
|
1,000 |
|
|
|
|
To Share Forfeiture A/c |
|
|
800 |
||
|
|
To Calls-in-Arrears A/c |
|
|
200 |
||
|
|
(100 shares of ₹10 each forfeited for the non-payment of ₹2 per share) |
|
|
|
||
|
|
|
|
|
|
||
|
Feb. 01 |
Bank A/c |
Dr. |
|
420 |
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
180 |
|
|
|
|
To Equity Share Capital A/c |
|
|
600 |
||
|
|
(60 shares of ₹10 each re-issued at ₹7 per share, fully paid-up) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Share Forfeiture A/c |
Dr. |
|
300 |
|
|
|
|
To Capital Reserve A/c |
|
|
300 |
||
|
|
(Balance in Share Forfeiture Account of 60 shares after re-issue transferred to Capital Reserve) |
|
|
|
||
|
|
|
|
|
|
||
Working Note:
Forfeiture of re-issued shares
|
Share Forfeiture Credit |
₹ |
8 |
per share |
|
Share Forfeiture Debit |
₹ |
3 |
per share |
|
Balance in Share Forfeiture after re-issue |
|
5 |
per share |
General Reserve = Balance in Share Forfeiture after re-issue (per share) × No. of shares reissued
= ₹5 × 60
= ₹300
|
(ii) |
Book of Virender Limited |
|||||
|
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
||
|
|
|
|
|
|
||
|
|
Share Capital A/c |
Dr. |
|
1,200 |
|
|
|
|
To Share Forfeiture A/c |
|
|
400 |
||
|
|
To Calls-in-Arrears A/c |
|
|
800 |
||
|
|
(20 shares of ₹100 each ₹60 called-up forfeited for the non-payment of ₹40 per share) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Bank A/c |
Dr. |
|
675 |
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
225 |
|
|
|
|
To Share Capital A/c |
|
|
900 |
||
|
|
(15 shares of ₹100 each re-issued for ₹45 per share as ₹60 paid-up) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Share Forfeiture A/c |
Dr. |
|
75 |
|
|
|
|
To Capital Reserve A/c |
|
|
75 |
||
|
|
(Balance in Share Forfeiture of 15 re-issued shares transferred to Capital Reserve) |
|
|
|
||
|
|
|
|
|
|
||
Working Note:
|
Forfeiture of reissued shares |
|||
|
Share Forfeiture Credit (at the time of forfeiture ) |
₹ |
20 |
per share |
|
Share Forfeiture Debit (at the time of re-issue) |
₹ |
15 |
per share |
|
Balance in Share Forfeiture after re-issue |
₹ |
5 |
per share |
Capital Reserve = Balance in Share Forfeiture after re-issue (per share) × No. of shares reissued
= ₹5 × 15 Shares
= ₹75
Question 78:
Show
the forfeiture and reissue entries under each of the following cases:
(i) KBC Ltd. forfeited 300 shares of ₹10 each, ₹8 called-up held
by Mr. A for non-payment of second call money of ₹3 per share.
These shares were reissued to Mr. Z for ₹10 per share as
fully paid-up.
(ii) KK Ltd. forfeited 400 shares of ₹10 each, fully called-up, held by Mr. B
for non-payment of final call money of ₹4 per share. These shares were
reissued to Mr. T at ₹12 per share as fully paid-up.
(iii) Light Ltd. forfeited 250 shares of ₹10 each, fully
called-up held by Mr. C for non-payment of allotment money of ₹3 per share and
first and final call money of ₹4 per share. These shares were reissued @ ₹8 per share as
fully paid-up to Mr. P.
Answer:
|
(i) |
Books of KBC Limited Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (₹) |
Credit (₹) |
||
|
|
|
|
|
|
||
|
|
Share Capital |
Dr. |
|
2,400 |
|
|
|
|
To Share Forfeiture A/c |
|
|
1,500 |
||
|
|
To Calls-in-Arrears A/c |
|
|
900 |
||
|
|
(300 shares of ₹10 each on which had called ₹8, forfeited for non-payment of second call ₹3 per share) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Bank A/c |
Dr. |
|
3,000 |
|
|
|
|
To Share Capital A/c |
|
|
3,000 |
||
|
|
(300 shares of ₹10 each re-issued) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Share Forfeiture A/c |
Dr. |
|
1,500 |
|
|
|
|
To Capital Reserve A/c |
|
|
1,500 |
||
|
|
(Balance in Share Forfeiture Account after re-issue transferred to Capital Reserve) |
|
|
|
||
|
|
|
|
|
|
||
Working Notes-
|
Share Forfeiture Credit (at the time of forfeiture of shares) |
1,500 |
|
Less: Share Forfeiture Debit (at the time of re-issue shares) |
NIL |
|
Balance in Share Forfeiture after re-issue of shares |
1,500 |
Capital Reserve = Balance in Share Forfeiture of re-issued shares
= ₹1,500
|
(ii) |
Books of KK Limited Journal |
||||
|
Date |
Particulars |
L.F. |
Debit (₹) |
Credit (₹) |
|
|
|
|
|
|
|
|
|
|
Share Capital A/c |
Dr. |
|
4,000 |
|
|
|
To Share Forfeiture A/c |
|
|
2,400 |
|
|
|
To Calls-in-Arrears A/c |
|
|
1,600 |
|
|
|
(400 shares of ₹10 forfeited for the non-payment of final call ₹4 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
4,800 |
|
|
|
To Share Capital A/c |
|
|
4,000 |
|
|
|
To Securities Premium A/c |
|
|
800 |
|
|
|
(400 shares of ₹10 each re-issued at ₹12 per share as fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
2,400 |
|
|
|
To Capital Reserve A/c |
|
|
2,400 |
|
|
|
(Balance of Share Forfeiture after re-issue transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
Working Notes-
|
Share Forfeiture Credit (at the time of forfeiture of shares) |
2,400 |
|
Less: Share Forfeiture Debit (at the time of re-issue shares) |
NIL |
|
Balance in Share Forfeiture after re-issue of shares |
2,400 |
Capital Reserve = Balance in Share Forfeiture of re-issued shares
= ₹2,400
|
(iii) |
Books of Light Limited Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (₹) |
Credit (₹) |
||
|
|
|
|
|
|
||
|
|
Share Capital A/c |
Dr. |
|
2,500 |
|
|
|
|
To Share Forfeiture A/c (250×3) |
|
|
750 |
||
|
|
To Calls-in-Arrears A/c |
|
|
1,750 |
||
|
|
(250 shares of ₹10 each forfeited for the non-payment ₹7 per share) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Bank A/c |
Dr. |
|
2,000 |
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
500 |
|
|
|
|
To Share Capital A/c |
|
|
2,500 |
||
|
|
(250 shares of ₹10 each re-issued for ₹8 per share as fully paid-up ) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Share Forfeiture A/c |
Dr. |
|
250 |
|
|
|
|
To Capital Reserve A/c |
|
|
250 |
||
|
|
(Balance in Share Forfeiture Account after re-issue transferred to Capital Reserve) |
|
|
|
||
|
|
|
|
|
|
||
Working Notes-
|
Share Forfeiture Credit (at the time of forfeiture of shares) |
750 |
|
Less: Share Forfeiture Debit (at the time of re-issue shares) |
500 |
|
Balance in Share Forfeiture after re-issue of shares |
250 |
Capital Reserve = Balance in Share Forfeiture of re-issued shares = ₹250
Question 79:
Rekha holds 100
shares of ₹10 each on which
he has paid ₹1 per share on
application.
Sunita holds 200 shares of ₹10 each on which he has paid ₹1 and ₹2 per share on
application and allotment respectively.
Teenaholds 300 shares of ₹10 each and has paid ₹1 on
application, ₹2 on allotment
and ₹3 on first call.
They all fail to pay their arrears and the second call of ₹2 per share .
Shares are forfeited and subsequently reissued @ ₹11 per share as
fully paid-up.
journalise the above.
Answer:
|
Application |
₹ |
1 |
|
|
Allotment |
₹ |
2 |
|
|
First Call |
₹ |
3 |
|
|
Second Call |
₹ |
2 |
|
|
|
₹ |
8 |
Called-up |
|
Journal Entries |
|||||
|
Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
|
|
|
Forfeiture of Shares |
|
|
|
|
|
|
Shares of A |
|
|
|
|
|
|
Share Capital A/c |
Dr. |
|
800 |
|
|
|
To Share Forfeiture A/c |
|
|
100 |
|
|
|
To Calls-In-Arrears A/c |
|
|
700 |
|
|
|
(100 shares of ₹10 each, ₹8 called-up, held by A forfeited for the non-payment of ₹7 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares of B |
|
|
|
|
|
|
Share Capital A/c |
Dr. |
|
1,600 |
|
|
|
To Share Forfeiture A/c |
|
|
600 |
|
|
|
To Calls-in-Arrears A/c |
|
|
1,000 |
|
|
|
(200 shares of ₹10 each, ₹8 called-up, held by B forfeited for non-payment of ₹5 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares of C |
|
|
|
|
|
|
Share Capital A/c |
Dr. |
|
2,400 |
|
|
|
To Share Forfeiture A/c |
|
|
1,800 |
|
|
|
To Calls-in-Arrears A/c |
|
|
600 |
|
|
|
(300 shares of ₹10 each, ₹8 called-up held by C forfeited for the non-payment of ₹2 per share) |
|
|
|
|
|
|
Re-issue of shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
6,600 |
|
|
|
To Share Capital A/c |
|
|
6,000 |
|
|
|
To Securities Premium A/c |
|
|
600 |
|
|
|
(600 shares of ₹10 each re-issued at ₹11 per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
2,500 |
|
|
|
To Capital Reserve A/c |
|
|
2,500 |
|
|
|
(Share Forfeiture transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
Working Note:
|
Share Forfeiture of 100 shares held by Rekha |
₹ |
100 |
Cr. |
|
Share Forfeiture of 200 shares held by Sunita |
₹ |
600 |
Cr. |
|
Share Forfeiture of 300 shares held by Teena |
₹ |
1,800 |
Cr. |
|
Total Share Forfeiture credit (at the time of cancellation of shares) |
₹ |
2,500 |
|
Calculation of Capital Reserve
Total Share Forfeiture (at the time of cancellation of shares) = ₹2,500 Cr.
Less: Total Share Forfeiture (at the time of re-issue of shares) = (NIL) Dr.
Capital Reserve =₹2,500
Question 80:
Record
the journal entries for forfeiture and reissue of shares in the following
cases:
(i) Basak Ltd. forfeited 20 shares of ₹10 each, ₹7 called-up on
which the shareholder had paid application and allotment money of ₹5 per share. Out
of these, 15 shares were reissued to Naresh as ₹7 per share
paid-up for ₹8 per share.
(ii) Y Ltd. forfeited 90 shares of ₹10 each, ₹8 called-up
issued at a premium of ₹2 per share to 'R' for non-payment of
allotment money of ₹5 per share
(including premium). Out of these, 80 shares were reissued to Sanjay as ₹8 called-up
for ₹10 per share.
Answer:
|
Journal |
|
|||||
|
Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
||
|
(i) |
Share Capital A/c (20 Shares × 7) |
Dr. |
|
140 |
|
|
|
|
To Share Forfeiture A/c (20 Shares × 5) |
|
|
|
100 |
|
|
|
To Calls-in- Arrears A/c (20 Shares × 2) |
|
|
|
40 |
|
|
|
(20 Shares of ₹10 each, ₹7 called-up forfeited for the non-payment of call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (15 Shares × 8) |
Dr. |
|
120 |
|
|
|
|
To Share Capital A/c (15 Shares × 7) |
|
|
|
105 |
|
|
|
To Securities Premium A/c (15 Shares × 1) |
|
|
|
15 |
|
|
|
(15 shares were reissued as ₹7 paid-up for ₹8 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares Forfeiture A/c (15 Shares × 5) |
Dr. |
|
75 |
|
|
|
|
To Capital Reserve A/c |
|
|
|
75 |
|
|
|
(Transfer of prof it on re-issue of 15 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(ii) |
Share Capital A/c (90 Shares × 8) |
Dr. |
|
720 |
|
|
|
|
Securities Premium A/c (90 Shares × 2) |
Dr. |
|
180 |
|
|
|
|
To Share Forfeiture A/c (90 Shares × 5) |
|
|
|
450 |
|
|
|
To Share Allotment A/c (90 Shares × 5) |
|
|
|
450 |
|
|
|
(Shares forfeited for non-payment of allotment) |
|
|
|
|
|
|
|
Bank A/c (80 Shares × 10) |
Dr. |
|
800 |
|
|
|
|
To Share Capital A/c (80 Shares × 8) |
|
|
|
640 |
|
|
|
To Securities Premium A/c (80 Shares × 2) |
|
|
|
160 |
|
|
|
(80 shares were reissued for ₹10, ₹8 called-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares Forfeiture A/c (80 Shares × 5) |
Dr. |
|
400 |
|
|
|
|
To Capital Reserve A/c |
|
|
|
400 |
|
|
|
(Transfer of prof it on re-issue of 80 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Working Notes-
Note
1
Prof it on 20 forfeited shares=100
Prof it on 15 forfeited shares=100×15/20=75
Forfeited shares (Cr.)=75 ₹. (Cr.)
Forfeited shares (Dr.)=Nil
Capital reserve=75 ₹.
Note
2
Prof It on 90 forfeited shares=450
Prof It on 80 forfeited shares=450×80/90=400
Forfeited shares (Cr.)=400 ₹.(Cr.)
Forfeited shares (Dr.)=Nil
Capital reserve=400 ₹.
Ts Grewal Solution 2026-2027
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Class 12 / Volume – 2
Chapter 1- 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
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Question No. 33 To 36
Question No. 37 To 40
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Question No. 45 To 48
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