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प्रश्न
Gaurav applied for 5,000 shares of ₹ 10 each at a premium of 2.50 per share. But he was allotted only 2,500 shares on pro rata basis . After having paid ₹ 3 per share on application, he did not pay allotment money of ₹ 4.50 per share (including premium) and on his subsequent failure to pay the first call of ₹ 2 per share, his shares were forfeited. These shares were reissued at the rate of ₹ 8 per share credited as fully paid .
Pass journal entries to record the forfeiture and reissue of shares.
उत्तर
Journal
|
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
Equity Share Capital A/c (2,500×7) |
Dr. |
|
17,500 |
|
|
|
Security Premium Reserve A/c |
Dr. |
|
3,750 |
|
|
|
To Equity Share Allotment A/c |
|
|
|
3,750 |
|
|
To Equity Share First Call A/c (2,500×2) |
|
|
|
5,000 |
|
|
To Share Forfeited A/c |
|
|
|
12,500 |
|
|
( 2,500 shares forfeited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (2,500×8) |
Dr. |
|
20,000 |
|
|
|
Share Forfeited A/c (2,500×2) |
Dr. |
|
5,000 |
|
|
|
To Equity Share Capital A/c (2,500×10) |
|
|
|
25,000 |
|
|
(Share reissued @Rs 8 per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeited A/c (12,500 – 5,000) |
Dr. |
|
7,500 |
|
|
|
To Capital Reserve A/c |
|
|
|
7,500 |
|
|
( Profit on reissue transferred to Capital Reserve) |
|
|
|
|
Working Notes:
WN 1: Calculation of Amount unpaid on Allotment
Amount received on application (5,000×3) = 15,000
Less: Amount adjusted on application (2,500×3) = 7,500
Excess amount received on application = 7,500
Amount due on allotment (2,500×4.5)= 11,250
Amount unpaid on allotment = 3,750 (11,250 – 7,500)
Note:
Rs 7,500 received on application will be transferred to allotment, but first of all we have to transfer such amount to Capital A/c and rest would be transferred to Securities Premium A/c. Capital on allotment is Rs 5,000 (2,500×2) that is fully received and balance amount of advance Rs 2,500 will be transferred to Securities Premium A/c. So, amount of premium unpaid is Rs 3,750 (2,500×2.5 –2,500).
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संबंधित प्रश्न
What is the maximum amount of discount at which forfeited share can be re-issued?
Give the meaning of forfeiture of shares
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(Forfeiture of shares issued at par)
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Pass necessary journal entries to record the above transactions.
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XYZ Ltd . issued a prospectus inviting applications for 2,000 shares of ₹ 10 each at a premium of ₹ 4 per share , payable as:
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Choose the appropriate alternative from the given options:
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Money received in advance from shareholders before it is actually called-up by the directors is ______.
The balance of share forfeited account after the reissue of forfeited shares is transferred to ______.
The balance of share forfeited account after the reissue of forfeited shares is transferred to ______?
If a share of ₹ 10 on which ₹ 8 has been paid up is forfeited, it can be reissued at the minimum price of ______.
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?
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?
Pass entries for forfeiture and re-issue in the following case.
Vikram Ltd. forfeited 5,000 shares of Rahul, who had applied for 6,000 shares for non-payment of allotment money of ₹ 5 per share and first and final call of ₹ 2 per share. Only application money of ₹ 3 was paid by him. Out of these 3,000 shares were re-issued @ ₹ 12 per share as fully paid.
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An equity share of ₹10 fully called up on which ₹ 6 has been paid was forfeited for the non-payment of the balance amount. At which of the following minimum price can it be reissued?
200 equity shares of ₹10 each issued at par were forfeited for non-payment of first call of ₹3 per share. Final call of ₹2 per share was not yet called. By which amount the share capital will be debited on forfeiture?
