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प्रश्न
EF Ltd. invited applications for issuing 80,000 equity shares of ₹ 50 each at a premium of 20%. The amount was payable as follows:
On Application: ₹ 20 per share (including premium ₹ 5)
On Allotment: ₹ 15 per share (including premium ₹ 5)
On First Call: ₹ 15 per share
On Second and Final call: Balance amount
Applications for 1,20,000 shares were received. Applications for 20,000 shares were rejected and pro-rata allotment was made to the remaining applicants.
Seema, holding 4,000 shares failed to pay the allotment money. Afterward, the first call was made. Seema paid allotment money along with the first call. Sahaj who had applied for 2,500 shares failed to pay the first call money. Sahaj's shares were forfeited and subsequently reissued to Geeta for ₹ 60 per share, ₹ 50 per share paid up. Final call was not made. Pass necessary journal entries for the above transactions in the books of EF Ltd. by opening a calls-in-arrears account.
उत्तर
Journal
| Date | Particulars | L.F. |
Debit Amount(₹) |
Credit Amount(₹) |
|
| Bank A/c | Dr. | 24,00,000 | |||
| To Share Application A/c | 24,00,000 | ||||
| (Being Application money received on 1,20,000 shares) | |||||
| Share Application A/c | Dr. | 24,00,000 | |||
| To Share Capital A/c (80,000 × 15) | 12,00,000 | ||||
| To Securities Premium A/c (80,000 × 5) | 4,00,000 | ||||
| To Share Allotment A/c | 4,00,000 | ||||
| To Bank A/c | 4,00,000 | ||||
| (Being application money adjusted and excess money on 20,000 shares refunded) | |||||
| Share Allotment A/c | Dr. | 12,00,000 | |||
| To Share Capital A/c | 8,00,000 | ||||
| To Securities Premium A/c | 4,00,000 | ||||
| (Being allotment due on 80,000 shares) | |||||
| Bank A/c | Dr. | 7,60,000 | |||
| Calls–in–Arrears A/c (4000 × 15 – 20,000) | Dr. | 40,000 | |||
| To Share Allotment A/c | 8,00,000 | ||||
| (Being Allotment money received and excess money on application adjusted) | |||||
| Share First Call A/c | Dr. | 12,00,000 | |||
| To Share Capital A/c | 12,00,000 | ||||
| (Being call money due) | |||||
| Bank A/c | Dr. | 11,70,000 | |||
| Calls–in–Arrears A/c (2000 × 15) | Dr. | 30,000 | |||
| To Share First Call A/c | 12,00,000 | ||||
| (Being first call money received) | |||||
| Bank A/c | Dr. | 40,000 | |||
| To Call–in–Arrears A/c | 40,000 | ||||
| (Being allotment money received on 4,000 shares) | |||||
| Share Capital A/c (2,000 × 40) | Dr. | 80,000 | |||
| To Share Forfeiture A/c (2000 × 25) | 50,000 | ||||
| To Calls–in–Arrears A/c | 30,000 | ||||
| (Being Sahaj’s share forfeited) | |||||
| Bank A/c | Dr. | 1,20,000 | |||
| To Share Capital A/c | 1,00,000 | ||||
| To Securities Premium A/c | 20,000 | ||||
| (Being Sahaj’s shares reissued for ₹ 60 per share and (₹) 50 paid up) | |||||
| Share Forfeiture A/c | Dr. | 50,000 | |||
| To Capital Reserve A/c | 50,000 | ||||
| (Being amount transferred on shares reissued) |
Computation Table
| Categories | Shares Applied |
Shares |
Money received on Application @ (₹) 20 | Money Transferred to Share Capital @ (₹) 15 | Money Transferred to Securities Premium @ (₹) 5 | Allotment due @ (₹) 15 | Excess on Application | Refund |
| I | 20,000 | Nil | 4,00,000 | - | - | - | - | 4,00,000 |
| II | 1,00,000 | 80,000 | 20,00,000 | 12,00,000 | 4,00,000 | 12,00,000 | 4,00,000 | - |
| 1,20,000 | 80,000 | 24,00,000 | 12,00,000 | 4,00,000 | 12,00,000 | 4,00,000 | 4,00,000 |
| Shares Allotted | Shares Applied | Excess on Application | |
| Seema’s Shares (Category II) | 4,000 | 5,000 ( 4,000 × 1,00,000/80,000) |
20,000 |
| Sahaj’s Shares (Category II) |
2,000 (2,500 × 80,000/1,00,000) |
2,500 | - |
APPEARS IN
संबंधित प्रश्न
Alfa Ltd. invited applications for issuing 75,000 equity shares of Rs 10 each. 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 - balance
Application for 1,00,000 shares was received. Shares were allotted to all the applicants on pro-rata basis and excess money received with applications was transferred towards sums due on the 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 the second call was also received except on 1000 shares, applied by Monika. Her shares were also forfeited. All the forfeited shares were re-issued to Mohit for Rs 9,000 as fully paid up.
Pass necessary journal entries in the books of Alfa Ltd. for the above transactions
'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.
JY Ltd. invited applications for issuing 70,000 equity shares of Rs 10 each at a discount of 10%. The amount was payable as follows:
On applications and allotment - Rs 4 per share
On first and final call - the balance amount
Application for 2,00,000 shares were received. Applications for 60,000 shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The first and final call was made. All money was received except on 1,400 shares applied by Naresh. His shares were forfeited. The forfeited shares were re-issued at the maximum discount permissible under the law.
Pass necessary journal entries for the above transactions in the books of JY Ltd.
On 1st April 2012, Micro-tech Ltd. was formed with an authorised capital of Rs 50,00,000 divided into 5,00,000 equity shares of Rs 10 each. The company issued a prospectus inviting applications for 4,50,000 equity shares. The company received applications for 4,20,000 equity shares.
During the first year, Rs 8 per share were called. Ram holding 1,000 shares and Rajesh holding 2,000 shares did not pay the first call of Rs 2 per share. Rajesh's shares were forfeited after the first call and later on 1,500 of the forfeited share were re-issued at Rs 6 per share, Rs 8 called up. Show the following:
a. Share Capital in the Balance Sheet of the company as per revised Schedule VI Part I of the Companies Act, 1956.
b. Also, prepare 'Notes to Accounts' for the same
NY Ltd. invited applications for issuing 90,000 equity shares of Rs 10 each at a premium of `5 per share. The amount was payable as follows:
On applications and allotment - Rs 10 per share (including premium)
On first and final call - the balance amount
Applications for 2,70,000 shares were received. Applications for 90,000 shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The first and final call was made. The amount was duly received except on 1.800 shares applied by Govind. His shares were forfeited. The forfeited shares were re-issued at Rs 8 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of X Ltd.
Give one word / Term / phrase for the following statement :
The account to which excess amount on share forfeited a/c is transferred.
Long Answer Question
Explain the term ‘Forfeiture of Shares’ and give the accounting treatment on forfeiture.
X Ltd . forfeited 100 shares of ₹ 10 each (₹ 8 called-up) issued at a premium of ₹ 2 per share to Mr. R, 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 Mr . Sanjay as ₹ 8 called-up for ₹ 7 per share. Give necessary journal entries relating to forfeiture and reissue of shares.
Star Ltd. forfeited 500 Equity Shares of ₹ 100 each for non-payment of first call of ₹ 30 per share . The final call of ₹ 10 per share was not yet made. Out of these, 60% shares were reissued for ₹ 39,000 fully paid. journalise the forfeiture and reissue of shares.
A share of ₹ 100 issued at a premium of ₹ 10 on which ₹ 80 (including premium) was called and ₹ 60 (including premium) was paid, has been forfeited. This share was afterwards reissued as fully paid-up for ₹ 70 . Give Journal entries to record the above.
Pass journal entries in the following cases:
M 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 Vishu at a discount of ₹ 4 per share .
Sukanya Ltd. invited applications for issuing 1,00,000 equity shares of ₹ 10 each. The shares were issued at a premium of ₹ 20 per share. The amount was payable as follows:
| On Application and Allotment | -- | ₹ 14 per share (including premium of ₹ 10), |
| On First Call | -- | ₹ 8 per share (including premium of ₹ 5), |
| On Final Call | -- | ₹ 8 per share (including premium of ₹ 5). |
Applications for 96,000 shares were received. Rohit , a shareholder holding 7,000 shares, failed to pay both the calls and Namit , a holder of 5,000 shares , did not pay the final call.
Shares of Rohit and Namit were forfeited . Of the forfeited shares 8,000 shares including all the shares of Rohit were reissued to Reena at ₹ 8 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of Sukanya Ltd.
Amrit Ltd. issued 50,000 shares of ₹ 10 each at a premium of ₹ 2 per share payable as ₹ 3 on application, ₹ 4 on allotment (including premium) , ₹ 2 on first call and the remaining on second call.
Applications were received for 75,000 shares and pro rata allotment was made to all the applicants.
All moneys due were received except allotment and first call from Sonu who applied for 1,200 shares. All his shares were forfeited. The forfeited shares were reissued for ₹ 9,600. Final call was not made . Pass necessary Journal entries.
Choose the appropriate alternative from the given options:
On the forfeiture of 100 shares of ₹ 50 each, ₹ 2,500 were credited to share forfeited account. These shares were re-issued at ₹ 25 per share fully paid up. The amount credited to 'Capital Reserve Account' will be:
Money received in advance from shareholders before it is actually called-up by the directors is ______.
Balance of Forfeited Shares Account after reissue of forfeited shares is transferred to ______.
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 amount of share forfeiture would be reflected in the balance sheet?
Radhe Ltd. forfeited 500 shares of ₹ 10 each fully called up for non-payment of final call of ₹ 3 per share. 300 of these shares were reissued at ₹ 8 per share as fully paid-up. The amount credited to Capital Reserve Account was:
Aysha Ltd. forfeited 1,10,000 shares of ₹ 10 each issued at 20% premium for the non-payment of first call of ₹ 2 per share and final call of ₹ 3 per share, Share Forfeited Account will be credited with ______.
MV Ltd. was registered with a capital of ₹ 2,00,000 divided into 10,000 Equity shares of ₹ 20 each payable as follows:
| On Application | ₹ 5 per share |
| On Allotment | ₹ 7 per share |
| On First & Final Call | ₹ 8 per share |
The company offered 5,000 shares to the public for subscription. It received applications for 6,700 shares.
From amongst the applicants:
- Vimal, who had applied for 1,500 shares, paid ₹ 7,500 on application, but was allotted only 800 shares.
- Abhay, who had applied for 2,000 shares, paid the full amount of ₹ 40,000 with his application, but was allotted only 1,000 shares.
- Nitin, who had applied for and allotted 500 shares, did not pay the allotment and call money when due.
- The remaining applicants paid as and when due.
The surplus money paid by both Vimal and Abhay was used towards allotment and call and any surplus beyond the call was refunded.
The company forfeited Nitin's shares after the final call.
You are required to pass journal entries to record the above transactions in the books of the company.
