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प्रश्न
AB Ltd. invited applications for issuing 75,000 equity shares of Rs.100 each at a premium of Rs.30 per share. The amount was payable as follows:
On Application and Allotment - Rs.85 per share (including premium)
On First and Final call - the balance amount
Applications for 1,27,500 shares were received. Applications for 27,500 shares were rejected and shares were allotted on pro-rata basis to the remaining applicants. Excess money received on application and allotment was adjusted towards sums due to first and final call. The calls were made. A shareholder, who applied for 1,000 shares, failed to pay the first and final call money. His shares were forfeited. All the forfeited shares were reissued at Rs.150 per share fully paid up.
Pass necessary journal entries for the above transactions in the books of AB Ltd.
उत्तर
Journal Entries
| Date | Particulars | L.F. | Debit (Rs.) | Credit (Rs.) |
|
Bank A/c Dr. To Share Application and Allotment A/c (Being share application and allotment received on 1,27,500 of Rs 85 each including Premium of Rs 30 each ) |
1,08,37,500
|
1,08,37,500
|
||
|
Share Application and Allotment A/c Dr. To Share Capital A/c To Securities Premium A/c To Bank A/c To Share First and Final Call A/c (Being share application of 75,000 shares transferred to share capital, share application and allotment on 27,500 shares refunded and rest is adjusted on share first and final call) |
1,08,37,500
|
41,25,000 22,50,000 23,37,500 21,25,000
|
||
|
Share First and Final Call A/c Dr. To Share Capital A/c (Being share first call due on 75,000 shares of Rs 45 each) |
33,75,000
|
33,75,000
|
||
|
Bank A/c Dr. To Share First and Final Call A/c (Being share first and final call received) |
12,37,500
|
12,37,500
|
||
|
Share Capital A/c Dr. To Share Forfeiture A/c To Share First and Final Call A/c (Being 750 share, were forfeiture for non- payment of share first and final call of Rs 45 each) |
75,000
|
62,500 12,500
|
||
|
Bank A/c Dr. To Share Capital A/c To Securities Premium A/c Being 750 forfeited share were re-issued at Rs 150 each fully paid up) |
1,12,500
|
75,000 37,500
|
||
|
Share Forfeiture A/c Dr. To Capital Reserve A/c (Being share forfeiture transferred to capital reserve) |
62,5000
|
62,500 |
| Category | Share Applied | Share Allotted | Money received on App. and Allot. @ Rs.85 each including premium of Rs.30 each | Money transfers to share capital @ Rs.85 each including premium of Rs.30 each | Money transfer to securities premium @ Rs.30 each | Excess Application and Allotment money | Share first and final call due @ Rs.45 each | Amount receivable on share first and final call after adjustment | Money Refunded |
| I | 27,500 | Nil | 23,37,500 | 23,37,500 | |||||
| II | 1,00,000 | 75,000 | 85,00,000 | 41,25,000 | 22,50,000 | 21,25,000 | 33,75,000 | 12,50,000 | - |
| 1,27,500 | 75,000 | 7,08,37,500 | 41,25,000 | 22,50,000 | 21,25,000 | 33,75,000 | 12,50,000 | 23,37,500 |
Those who applied for 1,00,000 share allotted =75,000 share.
Those who applied for 1,000 share, alloted = 75,000 x (1000/100000) = 750 shares
Share Application and Allotment received on 1,000 shares of Rs.85 each (including premium of Rs.30 each) = Rs.85,000
Shares Allotted (750 × 85) = Rs.63,750
Excess Application and Allotment money received = Rs.21,250
Share First and Final Call due on 750 shares of Rs.45 each = Rs.33,750
Excess Application and Allotment money received = Rs.21,250
Share First and Final Call not received = Rs.12,500 (33,750 – 21,250)
Therefore, Share First and final Call received = Rs.12,37,500 (12,50,000 – 12,500)
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संबंधित प्रश्न
What is the maximum amount of discount at which forfeited share can be re-issued?
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On application - Rs 2 per share
On allotment - Rs 6 per share (including premium)
On first and final call - the balance
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Pass necessary Journal Entries for the above transactions in the books of the company.
Sun Pharma Ltd. is registered with an authorized capital of 1,00,00,000 divided into 1,00,000 equity shares of Rs 100 each. The company issued 50,000 shares at a premium of Rs 40 per shares. A shareholder holding 500 shares did not pay the final call of Rs 20 per share. His shares were forfeited. Present the 'Share Capital' in the Balance Sheet of the Company as per Schedule VI Part I of the Companies Act, 1956. Also, prepare notes to accounts.
'Wellness Ltd.' invited applications for issuing 40,000 equity shares of Rs 10 each at a discount of 10%.
The amount was payable as follows :
On application and allotment - Rs 4 per share
On the first call - Rs 3 per share
On second and final call - the balance
Applications for 39,000 shares were received and the allotment was made to all the applicants.
The payment was received as per the following details:
On 30,000 shares - Full amount
On 6,000 shares - Rs 7 per share
On 3,000 shares - Rs 4 per share
The Directors forfeited those shares on which less than Rs 7 per share were received. The forfeited shares were re-issued at `8 per share as fully paid up.
Pass necessary Journal Entries in the books of the company for the above transactions.
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On application - Rs 2 per share
On allotment - Rs 1 per share
On the first call - Balance of the called up amount
The amounts received on these shares were as follows:
On 6,000 shares - Full amount called
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On 750 shares - Rs 2 per share
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Pass necessary journal entries for the above transactions in the books of Blue Star Ltd
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On application and allotment - Rs 100 per share (including Rs 50 premium)
On first and final call - The balance
The issue was fully subscribed. A shareholder holding 500 shares paid the full share money with an application. Another shareholder holding 200 shares failed to pay the first and final call money. His shares were forfeited. The forfeited shares were re-issued for Rs 19,000 as fully paid up.
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On application - Rs 2 per share
On allotment - Rs 3 per share
On first and final call - Rs 4 per share
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On application and allotment - Rs 10 (including Rs 5 premium)
On first and final call - Rs 10 (including Rs 5 premium)
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The Century Ltd. issued 8,000 shares of Rs 100 at a premium of 10% payable as under-
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| On First Call | Rs 20 | On Second Call | Rs 25 |
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State, whether the following statements is True or False.
Forfeited shares are reissued at par only.
State, whether the following statements is True or False.
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Give journal entries in the company's books to record the forfeited shares and their reissue.
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A holds 100 shares of ₹ 10 each on which he has paid ₹ 1 per share on application.
B holds 200 shares of ₹ 10 each on which he has paid ₹ 1 and ₹ 2 per share on application and allotment respectively.
C holds 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.
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Record the above in the company's Journal and prepare the Balance Sheet.
JCV Ltd., forfeited 200 shares of ₹ 10 each issued at a premium of ₹ 2 per share for the non-payment of allotment money of ₹ 3 per share (including premium). The first and final call of ₹ 4 per share has not been made as yet . 50% of the forfeited shares were reissued at ₹ 8 per share as fully paid-up . Pass necessary Journal entries for the forfeiture and reissue of shares.
Commence Publications Ltd. issued 50,000 Equity Shares of ₹ 10 each at a premium of 10% payable as under:
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| On allotment | ₹ 5, | On final call | ₹ 2. |
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Pass necessary journal entries to record the above transactions.
Krishna & Co. Ltd. with an authorised capital of ₹ 2,00,000 divided into 20,000 Equity Shares of ₹ 10 each, issued the entire amount of the shares payable as:
₹ 5 on application (including premium ₹ 2 per share),
₹ 4 on allotment, and
₹ 3 on call.
All share money is received in full with the exception of the allotment money on 200 shares and the call money on 500 shares (including the 200 shares on which the allotment money has not been paid).
The above 500 shares are duly forfeited and 400 of these( including the 200 shares on which allotment money has not been paid) are reissued at ₹ 7 per share payable by the purchaser as fully paid-up. Pass journal entries(including cash transactions) and show the balances in the Balance Sheet giving effect to the above transactions.
XYZ Ltd . issued a prospectus inviting applications for 2,000 shares of ₹ 10 each at a premium of ₹ 4 per share , payable as:
| On application | --- | ₹ 6 (including ₹ 1 premium) |
| On allotment | --- | ₹ 2 (including ₹ 1 premium) |
| On first call | --- | ₹ 3 (including ₹ 1 premium) |
| On second and final call | --- | ₹ 3 (including ₹ 1 premium) |
Applications were received for 3,000 shares and pro rata allotment was made on the applications for 2,400 shares. It was decided to utilise excess application money towards the amount due on allotment .
X, to whom 40 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call , his shares were forfeited.
Y, who applied for 72 shares failed to pay the two calls and on his such failure , his shares were forfeited.
Of the shares forfeited , 80 shares were sold to Z credited as fully paid-up for ₹ 9 per share , the whole of Y's shares being included . Prepare Journal , Cash Book and the Balance Sheet .
Concept Stationary Ltd. invited applications for issuing 3,00,000 shares of ₹ 10 each at a premium of ₹ 3 per share. The amounts were payable as follows:
On application and allotment – ₹ 7 per share.
On first & final call – balance (including a premium of ₹ 3)
Applications were received for 4,00,000 shares & allotment was made as follows:
(i) To applicants for 80,000 shares – 80,000 shares.
(ii) To applicants for 40,000 shares – nil
(iii) The balance of the applicants were allotted shares on a pro-rata basis.
Excess money received with applications was adjusted towards sums due on the first and final call.
Amit, who belonged to category (i) and was allotted 4,000 shares and Veni, who belonged to category (iii) and was allotted 4,400 shares failed to pay the first and final call money. Their shares were forfeited. The forfeited shares were re-issued at ₹ 7 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of the company.
DF Ltd. invited applications for issuing 50,000 shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows:
On Application : ₹ 3 per share (including premium ₹ 1)
On Allotment : ₹ 3 per share (including premium ₹ 1)
On First call : ₹ 3 per share
On Second and Final Call: Balance amount
Application for 70,000 shares was received. Allotment was made on the following basis.
Applications for 5,000 shares – Full
Applications for 50,000 shares – 90%
Balance of the applications was rejected. ₹ 1,11,000 were received on account of allotment. The amount of allotment due from the shareholders to whom shares were allotted on pro-rata basis was fully received. A few shareholders to whom shares were allotted in full, failed to pay the allotment money. ₹ 1,20,000 were received on the first call. Directors decided to forfeit those shares on which allotment and call money were due. Half of the forfeited shares were re-issued @ ₹ 8 per share fully paid up. Final call was not made.
Pass the necessary journal entries for the above transactions in the book of DF Ltd.
Capital reserves are created from ______.
The balance of share forfeited account after the reissue of forfeited shares is transferred to ______.
Shares can be forfeited for?
If the loss on the re-issue of shares is less than the amount forfeited, the 'surplus' or profit is transferred to:
If 400 shares of ₹ 100 issued at a premium of ₹ 30 on which the full amount has been called and ₹ 80 (including premium) have been received are forfeited, the share forfeiture account should be credited with ______.
Based on the below information, you are required to answer the following question:
|
Nidiya Limited was incorporated on 1st April 2017 with a registered office in Mumbai. The capital clause of the memorandum of Association reflected a registered capital of 8,00,000 equity shares of ₹ 10 each and 1,00,000 preference shares of ₹ 50 each. Since some large investments were required for building and machinery the company in consultation with vendors, M/s VPS Enterprises, issued 1,00,000 equity shares and 20,000 preference shares at par with them in full consideration of assets acquired. Besides this, the company issued 2,00,000 equity shares for cash at par payable as ₹ 3 on application, 2 on the allotment, 3 on the first call and 2 on the second call. Till date, the second call has not yet been made and all the shareholders have paid except Mr. Ajay who did not pay allotment and calls on his 300 shares and Mr. Vipul who did not pay the first call on his 200 shares. Shares of Mr. Ajay were then forfeited and out of the 100 shares were reissued at ₹ 12 per share. |
What is the amount of security premium reflected in the balance sheet at the end of the year?
A company forfeited 3,000 shares of ₹ 10 each, on which only ₹ 5 per share (including ₹ 1 premium) has been paid. Out of these few shares were re-issued at a discount of ₹ 1 per share were and ₹ 6,000 were transferred to Capital Reserve. How many shares were re-issued?
NH Ltd, with an authorized capital of ₹ 10,00,000 divided into 1,00,000 Equity shares of ₹10 each, issued 50,000 shares to the public at a premium of ₹ 2 per share, payable as follows:
₹ 5 on Application (including premium)
₹ 3 on Allotment
₹ 4 on First and Final Call.
The subscription was at par and the share money was received in full with the exception of the allotment money on 4,000 shares held by shareholder Ravi and the call money on 6,000 shares (including Ravi's shares).
The above 6,000 shares were forfeited by the company and 5,000 of these (including the shares which had been allotted to Ravi) were reissued at ₹ 8 per share as fully paid-up.
You are required to pass journal entries to record the above transactions in the books of the company.
