Question 81:
Pass journal entries in the
following cases:
NK Ltd forfeited 200 Equity
Shares of `10 each , issued at a premium of `
5 per share , held by Ram for non-payment of the final call of ` 3 per share . Of these , 100 shares were reissued to Narender
at a discount of `
4 per share .
Answer:
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|
Journal |
||||
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Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
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Equity Share Capital A/c |
Dr. |
|
20,000 |
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To Share Forfeiture A/c (2,000 × ` 7) |
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|
14,000 |
|
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To Calls-in-Arrears A/c |
|
|
6,000 |
|
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|
(2,000 shares of `
10 each forfeited for the non-payment of `
3 per share) |
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Bank A/c |
Dr. |
|
600 |
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Share Forfeiture A/c (100 × ` 4) |
Dr. |
|
400 |
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To Equity Share Capital A/c |
|
|
1,000 |
|
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|
(100 shares of `
10 each reissued at ` 6 per share as fully paid-up) |
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Share Forfeiture A/c |
Dr. |
|
300 |
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To Capital Reserve A/c |
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|
300 |
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|
(Balance in Share Forfeiture of 100 re-issued shares transferred to Capital
Reserve ) |
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Working Note-
|
Share Forfeiture of re-issued shares |
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Share Forfeiture |
Cr. |
`
7 |
per share |
|
Share Forfeiture |
Dr. |
`
4 |
per share |
|
Balance in share forfeiture after
re-issue |
Cr. |
3 |
per share |
Capital Reserve = Balance in Share
Forfeiture after re-issue × No. of shares re-issued
= Re 3 × 100 shares
= `
300
Question 82:
The Directors of a company forfeited 300 shares of `10 each issued at a premium of ` 3 per share , for the non-payment of the first call money of ` 2 per share . The final call of `2 per share has not been made. Half the forfeited shares
were reissued at `1,500 as fully paid-up. Record the journal entries for
the forfeiture and reissue of shares.
(CBSE
2009)
Answer:
|
Journal
Entries |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
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|
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|
Share Capital A/c (300 × 8) |
Dr. |
|
2,400 |
|
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To Share Forfeiture A/c (300 × 6) |
|
|
1,800 |
|
|
|
To Calls-In-Arrears (300 × 2) |
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|
600 |
|
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(300 shares of `
10 each on which ` 8 had called, forfeited for non-payment ` 2 per share) |
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Bank A/c |
Dr. |
|
1,500 |
|
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To Share Capital A/c |
|
|
1,500 |
|
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|
(150 shares of `
10 each re-issued for the sum of ` 1,500) |
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Share Forfeiture A/c |
Dr. |
|
900 |
|
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To Capital Reserve A/c |
|
|
900 |
|
|
|
(Balance in Share Forfeiture
Account of 150 re-issued shares,
transferred to Capital Reserve) |
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Working Notes
Share Forfeiture of Re-issued Shares
|
Share Forfeiture (at the time of forfeiture) |
Cr. |
6 |
|
|
Less: Share Forfeiture (at the time of re-issue) |
Dr. |
NIL |
|
|
Balance in Share Forfeiture after
re-issue |
Cr. |
6 |
per share |
Capital Reserve = Balance in Share
Forfeiture after reissue (per share) × Number of Shares Reissued
= `
6 × 150
= `
900
Question 83:
X
Ltd . forfeited 100 shares of `
10 each (` 8 called-up) issued at a premium of ` 2 per share to Rahul, on which he had paid applications
money of ` 5 per share , for non-payment of allotment money of ` 5 per share (including premium). Out of these, 70 shares were reissued to Sanjay
as ` 8 called-up for `
7 per share. Give necessary journal entries relating to forfeiture and reissue of
shares.
Answer:
|
Books
of X Limited Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|
|
|
|
|
|
Share Capital A/c (100 × 8) |
Dr. |
|
800 |
|
|
|
Securities Premium A/c (100 × 2) |
Dr. |
|
200 |
|
|
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To Share Forfeiture A/c (100 × 5) |
|
|
500 |
|
|
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To Calls-in-Arrears A/c (100 × 5) |
|
|
500 |
|
|
|
(100 shares of `
10 each, ` 8 called-up with premium ` 2 per share, forfeited for the non-payment of `
5 each including ` 2 premium) |
|
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|
|
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|
|
|
|
|
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Bank A/c |
Dr. |
|
490 |
|
|
|
Share Forfeiture A/c |
Dr. |
|
70 |
|
|
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To Share Capital A/c |
|
|
560 |
|
|
|
(70 shares of `
10 each re-issued at ` 7 per share, `
8 paid-up) |
|
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Share Forfeiture A/c |
Dr. |
|
280 |
|
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To Capital Reserve A/c |
|
|
280 |
|
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|
(Balance of 70 shares re-issued shares in Share
Forfeiture Account transferred to Capital Reserve) |
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Working Note-
|
Share Forfeiture Credit |
5 |
per share |
|
Less: Share
Forfeiture Debit |
1 |
per share |
|
Balance in Share Forfeiture of re-issued shares |
4 |
per share |
Capital Reserve = Balance in Share
Forfeiture Account of re-issued shares ×
No. of shares re-issued
= 70 × 4
= `
280
Question 84:
150 shares of ` 10 each issued at a premium of ` 4 per share payable with allotment were forfeited for
non-payment of allotment money of ` 8 per share including premium. The first and final call of ` 4 per Pass Journal entries in the books of X Ltd. for the above. (NCERT, Modified)
Answer:
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|
|||||
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Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
Share Capital A/c |
Dr. |
|
900 |
|
|
|
Securities Premium A/c |
Dr. |
|
600 |
|
|
|
To Share Allotment A/c |
|
|
1,200 |
|
|
|
To Share Forfeiture A/c |
|
|
300 |
|
|
|
(150 shares of `
10 each forfeited for non–payment of allotment money of `
8 per share including premium of ` 4 per share) |
|
|
|
|
|
|
|
|
|
|
|
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|
Bank A/c |
Dr. |
|
2,250 |
|
|
|
To Share Capital A/c |
|
|
1,500 |
|
|
|
To Securities Premium A/c |
|
|
750 |
|
|
|
(150 shares of `
10 each reissued for `
15 per share fully paid–up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
300 |
|
|
|
To Capital Reserve A/c |
|
|
300 |
|
|
|
(Balance of Share Forfeiture Account transferred to
Capital Reserve Account) |
|
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Ts Grewal Solution 2024-2025
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Class 12 / Volume – II