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प्रश्न
Hero Ltd. was registered with a capital of ₹ 5,00,000 divided into 20,000 shares of ₹ 25 each, payable as:
| On Application | ₹ 5 per share |
| On Allotment | ₹ 10 per share |
| On Call | The Balance |
The company offered to the public for subscription 10,000 shares. It received applications for 11,100 shares.
From amongst the applicants:
- Vimal, who had applied for 1,200 shares, paid ₹ 6,000 on application. but was allotted only 600 shares.
- Mohan applied for 1,000 shares, paid the full amount of ₹ 25,000 with his application but was allotted only 500 shares.
- Vineet, who had applied for 1,500 shares, paid his application and allotment money in order but did not pay the call money.
- The remaining applicants paid as and when due.
The surplus money paid by both Vimal and Mohan was used towards allotment and call and any surplus beyond the call was refunded. The company forfeited Vineet’s shares and later re-issued 500 of the forfeited shares @ ₹ 20 per share fully paid up.
You are required to pass journal entries in the books of Hero Ltd.
उत्तर
| In the Books of Hero Ltd. | ||||
| Journal Entries | ||||
| Sr. No. | Particulars | L.F. | Debit (₹) | Credit (₹) |
| 1. | Bank A/c ...Dr. | 75,500 | ||
| To Share Application A/c | 75,500 | |||
| (Being share application received) | ||||
| 2. | Share Application A/c ...Dr. | 75,500 | ||
| To Share Capital A/c | 50,000 | |||
| To Share Allotment A/c | 8,000 | |||
| To Calls-in-Advance A/c | 5,000 | |||
| To Bank A/c | 12,500 | |||
| (Being share application transferred to share capital and subsequent instalments) | ||||
| 3. | Share Allotment A/c ...Dr. | 1,00,000 | ||
| To Share Capital A/c | 1,00,000 | |||
| (Being share allotment due) | ||||
| 4. | Bank A/c ...Dr. | 92,000 | ||
| To Share Allotment A/c | 92,000 | |||
| (Being share allotment received) | ||||
| 5. | Share 1st & Final Call A/c ...Dr. | 1,00,000 | ||
| To Share Capital A/c | 1,00,000 | |||
| (Being share capital due) | ||||
| 6. | Bank A/c ...Dr. | 80,000 | ||
| Calls-in-Advance A/c ...Dr. | 5,000 | |||
| Calls-in-Arrear A/c ...Dr. | 15,000 | |||
| To Share 1st & Final Call A/c | 1,00,000 | |||
| (Being share final call received) | ||||
| 7. | Share Capital A/c ...Dr. | 37,500 | ||
| To Share Forfeiture A/c | 22,500 | |||
| To Calls-in-Arrear A/c | 15,000 | |||
| (Being 1,500 shares forfeited) | ||||
| 8. | Bank A/c ...Dr. | 10,000 | ||
| Shares Forfeiture A/c ...Dr. | 2,500 | |||
| To Share Capital A/c | 12,500 | |||
| (Being 500 shares reissued) | ||||
| 9. | Share Forfeiture A/c ...Dr. | 5,000 | ||
| To Capital Reserve A/c | 5,000 | |||
| (Being net gain on reissued shares transferred to Capital Reserve) | ||||
APPEARS IN
संबंधित प्रश्न
State, whether the following statements is True or False.
Forfeited shares are reissued at par only.
Commence Publications Ltd. issued 50,000 Equity Shares of ₹ 10 each at a premium of 10% payable as under:
| On application | ₹ 2, | On first call | ₹ 2, |
| On allotment | ₹ 5, | On final call | ₹ 2. |
The calls were made by the company and all the money was duly received except the allotment and call money on 500 shares. These shares were, therefore, forfeited and later reissued @ ₹ 9 per share as fully paid-up.
Pass necessary journal entries to record the above transactions.
Balance of share forfeiture account is shown in the balance sheet under the item ______.
Those companies whose shares are listed on a recognised stock exchange for public trading ______.
If a share of ₹ 10 on which ₹ 8 has been called and ₹ 6 has been paid is forfeited, the Share Capital Account should be debited with:
Forfeiture of shares results in the reduction of:
Which of the following statement is false?
At the time of forfeiture, the share Capital Account is debited with ______
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?
Roxy Ltd. issued Equity shares of 10 each payable as:
₹ 4 on Application and Allotment; ₹ 2 on First Call; ₹ 4 on Second and Final Call.
Following is an extract of the Journal of Roxy Ltd.
| Journal of Roxy Ltd. (an extract) | ||||
| Date | Particulars | L. F. | Dr. (₹) | Cr. (₹) |
| 1. | Share First Call A/c ...Dr. | 28,000 | ||
| To Share Capital A/c | 28,000 | |||
| (Being first call due on ___??___ shares @ ₹ 2 each) | ||||
| 2. | Bank A/c ...Dr. | ?? | ||
| Calls in arrears A/c ...Dr. | 2,000 | |||
| To Share First Call A/c | 28,000 | |||
| (Being first call received on ___??___ shares) | ||||
| 3. | Share Capital A/c ...Dr. | ?? | ||
| To Shares Forfeited A/c | 4,000 | |||
| To Calls in Arrears A/c | ?? | |||
| (Being ___??___ shares of ₹ 10 each forfeited for non-payment of first call) | ||||
| 4. | Share Second & Final Call A/c ...Dr. | 52,000 | ||
| To Share capital A/c | 52,000 | |||
| (Being second & final call due on ___??___ shares @ ₹ 4 each) | ||||
| 5. | Bank A/c ...Dr. | ?? | ||
| Calls in Arrears A/c ...Dr. | 10,000 | |||
| To Share Second & Final Call A/c | 52,000 | |||
| (Being second call received on ___??___ shares) | ||||
| 6. | Share capital A/c ...Dr. | ?? | ||
| To Shares Forfeited A/c | ?? | |||
| To Calls in Arrears A/c | 10,000 | |||
| (Being ___??___ shares of ₹ 10 each forfeited for non payment of final call) | ||||
| 7. | Bank A/c ...Dr. | ?? | ||
| Share Forfeited A/c ...Dr. | ?? | |||
| To Share Capital A/c | ?? | |||
| (Being 1,500 forfeited shares including those on which the first call was not received reissued @ ₹ 6 per shares fully called) | ||||
| 8. | Share Forfeiture A/c (1,000 × 0) + (500 × 2) ...Dr. | ?? | ||
| To Capital Reserve A/c | ?? | |||
| (Being ___??___) | ||||
You are required to complete the journal entries by filling up the missing information represented by '??', including the number of shares and narration, if any.
