Question 101:
"Swasth Ltd.'forfeited 2,000 shares of 10 each for non-payment of final call of 3 per share. 1,500 of these shares were reissued and gain on reissue transferred to Capital Reserve was? 7,500. Determine the amount realised from reissue of shares.
Answer:
Amount forfeited on 2,000 shares par shares is ₹7 = ₹14,000
Amount transferred to capital reserve of 1500 shares = 14,000×1,500÷2,000 =₹10,500
Face value of all reissued shares = ₹10,000 (2,000×₹10)
Total Amount of discount = ₹10,500 - ₹7,500 = ₹3,000
Discount per share= ₹3,000÷1,500= ₹2
Therefore, amount realized from reissue of shares = ₹15,000 - ₹3,000 = ₹12,000
Reissue price par share = ₹12,000 ÷ 1,000 = ₹12
Forfeiture and Reissued of Shares which were Allotted on Pro rata
Question 102:
Arvind Ltd. issued 20,000 shares of ₹10 each at a premium of ₹2 per share payable as:
On Application- ₹6
On Allotment- ₹3 (including premium)
On First Call- ₹2
On Second and Final Call- ₹1
Applications were received for 30,000 shares. Applications for 6,000 shares were rejected and pro rata allotment was made to the remaining applicants.
Abhay, who was allotted 500 shares failed to pay allotment money and on his subsequent failure to pay the first call his shares were forfeited. Of these, 300 shares were reissued as fully paid-up for ₹6 per share.
Journalise the transactions to record the forfeiture and reissue of shares.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (₹) |
Credit (₹) |
|
|
|
Share Capital A/c (500×9) |
Dr. |
|
4,500 |
|
|
|
Securities Premium Reserve A/c (500×2-100) |
Dr. |
|
900 |
|
|
|
To Forfeited Shares A/c (600×6-100) |
|
|
|
3,500 |
|
|
To Share Allotment A/c |
|
|
|
900 |
|
|
(1,500-600 already paid=900) |
|
|
|
|
|
|
To Share First and Final A/c (500×2) |
|
|
|
1,000 |
|
|
(Being share forfeited for allotment and First and Final Calls of 500 shares) |
|
|
|
|
|
|
Bank A/c (300×6) |
Dr. |
|
1,800 |
|
|
|
Forfeited Shares A/c (300×4) |
|
|
1,200 |
|
|
|
To Share Capital A/c (300×10) |
|
|
|
3,000 |
|
|
(Being 300 shares forfeited reissued at ₹6 as fully paid-up) |
|
|
|
|
|
|
Forfeited Shares A/c |
Dr. |
|
900 |
|
|
|
To Capital Reserve A/c |
|
|
|
900 |
|
|
(Being full amount Forfeited on 300 Shares reissued, transferred to Capital Reserve) |
|
|
|
|
|
|
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|
|
|
Working Note:
Abhay, who was allotted 500 shares
And applied 500×20,000÷30,000=600
Money receive on application from Abhay = 600×6=3,600
Question 103:
Alfa Ltd. invited applications for issuing 75,000 equity shares of ₹ 10 each. The amount was payable as follows:
|
On application and allotment |
— |
₹4 per share , |
|
On first Call |
— |
₹ 3 per share, |
|
On second and final Call |
— |
balance. |
Applications
for 1,00,000 shares were received. Shares were allotted to all the applicants
on pro rata basis and excess money received with applications was
transferred towards sums due on first call. Vibha who was allotted 750
shares failed to pay the first call . Her shares were immediately forfeited .
Afterwards the second call was made. The amount due on second call was also
received except on 1,000 shares applied by Monika . Her shares were also
forfeited. All the forefited shares were reissued to Mohit for ₹9,000 as fully
paid-up.
Pass necessary journal entries in the Books of Alfa Ltd. for the above
transactions. (CBSE 2015)
Answer:
|
In the books of Alfa Ltd. Journal Entry |
|||||
|
Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
|
|
|
Bank A/c |
Dr. |
|
4,00,000 |
|
|
|
To Equity Share Application and Allotment A/c |
|
|
|
4,00,000 |
|
|
(Application money received on 1,00,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application and Allotment A/c |
Dr. |
|
4,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
|
3,00,000 |
|
|
To Equity Share First Call A/c |
|
|
|
1,00,000 |
|
|
(Application money transferred to share capital account and excess money is adjusted in first call account) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share First Call A/c |
Dr. |
|
2,25,000 |
|
|
|
To Equity Share Capital A/c |
|
|
|
2,25,000 |
|
|
(Amount due on first call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (2,25,000 – 1,00,000 – 1,250) |
Dr. |
|
1,23,750 |
|
|
|
To Equity Share First Call A/c |
|
|
|
1,23,750 |
|
|
(Amount received on first call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
5,250 |
|
|
|
To Equity Share Forfeiture A/c |
|
|
|
4,000 |
|
|
To Equity Share First Call A/c |
|
|
|
1,250 |
|
|
(Vibha’s shares were forfeited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Second and Final Call A/c |
Dr. |
|
2,22,750 |
|
|
|
To Equity Share Capital A/c |
|
|
|
2,22,750 |
|
|
(Amount due on second and final call after forfeiting Vibha’s shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (2,22,750 – 2,250) |
Dr. |
|
2,20,500 |
|
|
|
To Equity Share Second and Final Call A/c |
|
|
|
2,20,500 |
|
|
(Amount received on second and final call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
7,500 |
|
|
|
To Equity Share Forfeiture A/c |
|
|
|
5,250 |
|
|
To Equity Share Second and Final Call A/c |
|
|
|
2,250 |
|
|
(Monika’s shares were forfeited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
9,000 |
|
|
|
Equity Share Forfeiture A/c |
Dr. |
|
6,000 |
|
|
|
To Equity Share Capital A/c |
|
|
|
15,000 |
|
|
(Forfeited shares were reissued for ₹9,000 as fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Forfeiture A/c |
Dr. |
|
3,250 |
|
|
|
To Capital Reserve A/c |
|
|
|
3,250 |
|
|
(Excess amount on forfeiture is transferred to capital reserve) |
|
|
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|
|
|
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|
|
Working Notes:
WN1: Calculation of Amount not received on First Call
Share applied by vibha=1,00,000/75,000×750= 1,000 share
Amount received on 1000 share @4 ₹. Each= ₹. 4,000
Amount transferred to share capital A/c (750×4)=3,000
Excess application and allotment money received=1000
Amount due on first call @3 ₹. 2,250
Amount not received on first call @3=1,250(2,250-1,000)
WN2: Calculation of Amount not received on Second Call
Allotted share to Monika =75,000×1000/1,00,000=750 shares
Amount not received on second call=2,250(750×3)
Question 104:
Himalaya Company Limited issued for public subscription 1,20,000 equity shares of ₹ 10 each at a premium for ₹ 2 per share payable as under:
|
With Application |
— |
₹3 per share, |
|
On allotment (including premium) |
— |
₹ 5 per share, |
|
On First call |
— |
₹ 2 per share |
|
On Second and Final call |
— |
₹ 2 per share. |
Applications were received for 1,60,000 shares . Allotment was made on pro
rata basis . Excess money on application were adjusted against the amount
due on allotment.
Rohan to whom 4,800 shares were allotted failed to pay for the two calls. These
shares were subsequently forfeited after the second call was made . All
the shares forfeited were reissued to Teena as fully paid at ₹ 7 per share.
Record journal entries and show the transactions relating to share capital in
the company's Balance Sheet. (NCERT)
Answer:
|
Books of Himalaya Company Ltd. Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (₹) |
Credit (₹) |
|
|
|
Bank A/c |
Dr. |
|
4,80,000 |
|
|
|
To Share Application A/c |
|
|
4,80,000 |
|
|
|
(Share Application money received for 1,60,000 shares @ ₹3 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
4,80,000 |
|
|
|
To Equity Share Capital A/c |
|
|
3,60,000 |
|
|
|
To Share Allotment A/c |
|
|
1,20,000 |
|
|
|
(Share Application for 1,20,000 shares @ ₹3 per share transferred to Share Capital Account and remaining amount adjusted to Allotment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
6,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
3,60,000 |
|
|
|
To Securities Premium |
|
|
2,40,000 |
|
|
|
(Share Allotment due on 1,20,000 shares @ ₹5 per share including ₹2 Securities Premium) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
4,80,000 |
|
|
|
To Share Allotment A/c |
|
|
4,80,000 |
|
|
|
(Share allotment for 1,20,000 shares @ ₹5 per share received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share First Call A/c |
Dr. |
|
2,40,000 |
|
|
|
To Equity Share Capital A/c |
|
|
2,40,000 |
|
|
|
(Share First Call due on 1,20,000 shares @ ₹2 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,30,400 |
|
|
|
To Share First Call A/c |
|
|
2,30,400 |
|
|
|
(Share First Call received on 1,15,200 shares @ ₹2 per share and 4,800 shares failed to pay) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Final Call A/c |
Dr. |
|
2,40,000 |
|
|
|
To Equity Share Capital A/c |
|
|
2,40,000 |
|
|
|
(Share Final call due on 1,20,000 shares @ ₹2 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,30,400 |
|
|
|
To Share Final Call A/c |
|
|
2,30,400 |
|
|
|
(Share Final Call received on 1,15,200 shares @ ₹2 per share and 4,800 shares failed to pay) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c (4,800×10) |
Dr. |
|
48,000 |
|
|
|
To Share First Call A/c (4,800×2) |
|
|
|
9,600 |
|
|
To Share Final Call A/c (4,800×2) |
|
|
|
9,600 |
|
|
To Share Forfeiture A/c (4,800×6) |
|
|
|
28,800 |
|
|
(4,800 shares forfeited for the non–payment of First Call and Final Call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
33,600 |
|
|
|
Share Forfeiture A/c |
Dr. |
|
14,400 |
|
|
|
To Equity Share Capital |
|
|
|
48,000 |
|
|
(4,800 shares reissued @ ₹7 per share, fully paid–up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
14,400 |
|
|
|
To Capital Reserve A/c |
|
|
|
14,400 |
|
|
(Share forfeiture balance of 4,800 shares transferred to Capital Reserve Account) |
|
|
|
|
|
|
|
|
|
|
|
|
Himalaya Company Limited |
||
|
Balance Sheet |
||
|
Particulars |
Note No. |
(₹) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
a. Share Capital |
1 |
12,00,000 |
|
b. Reserves and Surplus |
2 |
2,54,400 |
|
2. Non-Current Liabilities |
|
|
|
3. Current Liabilities |
|
|
|
Total |
|
14,54,400 |
|
II. Assets |
|
|
|
1. Non-Current Assets |
|
|
|
2. Current Assets |
|
|
|
a. Cash and Cash Equivalents |
3 |
14,54,400 |
|
Total |
|
14,54,400 |
NOTES TO ACCOUNTS
|
Note No. |
Particulars |
(₹) |
|
|
1 |
Share Capital |
|
|
|
|
Authorised Share Capital |
|
|
|
|
…….. shares of ₹10 each |
– |
|
|
|
Issued Share Capital |
|
|
|
|
1,20,000 shares of ₹10 each |
12,00,000 |
|
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
|
1,20,000 shares of ₹10 each |
12,00,000 |
|
|
|
|
|
|
|
2 |
Reserves and Surplus |
|
|
|
|
Securities Premium |
2,40,000 |
|
|
|
Capital Reserve |
14,400 |
2,54,400 |
|
|
|
|
|
|
3 |
Cash and Cash Equivalents |
|
|
|
|
Cash at Bank |
14,54,400 |
|
|
|
|
|
|
Ts Grewal Solution 2026-2027
Click below for more Questions
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
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
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Question No. 65 To 68
Question No. 69 To 72
Question No. 73 To 76
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Question No. 97 To 100
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Question No. 113 To 115