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प्रश्न
KS Ltd invited application for issuing 1, 60,000 equity shares of Rs.10 each at a premium of 6 per share. The amount was payable as follows;
On Application Rs.4 per share (including premium Rs.1 per share)
On Allotment Rs.6 per share (including premium Rs.3 per share)
On First and Final Call – Balance
Application for 3, 20,000 shares were received. Applications for 80,000 share were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with application was adjusted towards surns due on allotment. Jain holding 800 shares failed to pay the allotment money his shares were forfeited immediately after allotment. Afterwards the final call was made. Gupta who has applied for 1200 shares failed to pay the final call. These shares were forfeited. Out of the forfeited shares 1000 shares were re-issued at 8 per share fully paid up. The re-issued shares included all the forfeited shares of Jain
Pass necessary journal entries for the above transactions in the books of KS Ltd.
उत्तर
Books of KS Ltd
Journal
| Date | Particulars | L.F. | Dr.(Rs.) | Cr.(Rs.) |
|
Bank A/c Dr To Equity Share Application A/c (Being amount received on application for 3,20,000)
Equity Share Application A/c Dr To Equity Share Capital A/c To Securities Premium A/c To Equity Share Allotment A/c To Bank A/c (Being amount of application transferred to Share Capital and excess money is adjusted towards allotment)
Equity Share Allotment A/c Dr To Equity Share Capital A/c To Securities Premium A/c (Being amount due on allotment)
Bank A/c (9,60,000 – 3,20,000 - 3,200) Dr To Equity Share Allotment A/c (Being amount received on Share Allotment)
Share Capital A/c Dr Securities Premium A/c Dr To Share Forfeiture A/c To Share Allotment A/c (Being 800 shares of Jain are forfeited due to non – payment of allotment money)
Equity Share First Call A/c Dr To Equity Share Capital A/c To Securities Premium A/c (Being amount due on first and final call on 1,59,200 shares)
Bank A/c (9,55,200 – 4,800) Dr To Equity Share First and Final Call A/c (Being amount received on first and final call)
Equity Share Capital A/c Dr Securities Premium A/c Dr To Equity Share Forfeiture A/c To Equity Share First and Final Call A/c (Being Gupta’s shares forfeited)
Bank A/c Dr Share Forfeiture A/c Dr To Equity Share Capital A/c (Forfeited shares were re-issued at `8 per share fully paid up)
Equity Share Forfeiture A/c Dr To Capital Reserve A/c (Being excess amount on forfeiture is transferred to capital reserve) |
12,80,000
12,80,000
9,60,000
6,36,800
4,800 2,400
9,55,200
9,50,400
8,000 1,600
8,000 2,000
3,200
|
12,80,000
4,80,000 1,60,000 3,20,000 3,20,000
4,80,000 4,80,000
6,36,800
4,000 3,200
6,36,800 3,18,400
9,50,400
4,800 4,800
10,000
3,200
|
| Category | Applied Shares | Shares Allotted | Money Received on Application @ Rs.4 each | Money transferred to Share Capital @ Rs3 each | Money transferred to Securities Premium @ Rs1 each | Excess Application money | Amount Adjusted on Allotment | Money refunded |
|
I II |
80,000 2,40,000 |
1,60,000 |
3,20,000 9,60,000 |
4,80,000 |
1,60,000 |
3,20,000 3,20,000 |
3,20,000 |
3,20,000
|
| 3,20,000 | 1,60,000 | 12,80,000 | 4,80,000 | 1,60,000 | 6,40,000 | 3,20,000 | 3,20,000 |
Calculation of amount unpaid on Allotment
Share Applied by Jain = (2,40,000/1,60,000) x 800 = 1,200 shares
Excess money received from Jain = 1,600 (400 x 4)
Amount due on Allotment = 2,400 (800 x 3)
Less : Excess Application Money = 1,600
____________________
Amount unpaid on Allotment = 800
Amount unpaid on Securities Premium = 2,400 (800 x 3)
____________________
Total amount unpaid on allotment = 3,200
Working Note : Amount received from Jain (Share Forfeiture.(Cr)
Amount received on application = 2,400 (800 x 3) [Premium excluded]
Add :Excess Application money = 1,600
________________________________________
Share Forfeiture (Cr.) = 4,000
Unpaid amount on First and Final Call
Share Allotted to Gupta = (1,60,000/2,40,000) x 1,200 = 800 shares
Unpaid amount on Allotment = 4,800 (800 6)
Calculation of amount received from Gupta (Share Forfeiture.Cr.)
Amount received on application = 2,400 (800 x 3) [Premium excluded]
Amount received on allotment = 2,400 (800 x 3) [Premium excluded]
Total amount received = 4,800
Calculation of Capital Reserve
(i) 800 shares of Jain are reissued
Share forfeiture (Cr.) = 4,000
Less :Share forfeiture (Dr.) = 1,600 (800 x 2)
Capital Reserve = 2,400
(ii) 200 Shares of Gupta are reissued
Share Forfeiture (Cr.) for 200 shares = 1,200 [(4,800/800)x200]
Less: Share Forfeiture (Dr.) = 400 [200 x 2]
Capital Reserve = 800
Total Amount of Capital Reserve = 3,200 [2,400 + 800]
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संबंधित प्रश्न
What is the maximum amount of discount at which forfeited share can be re-issued?
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
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Pass necessary journal entries for the above transactions in the books of AB Ltd.
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
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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.
'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 75 per share (including Rs 50 premium)
On allotment - The balance
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Pass necessary journal entries for the above transaction in the books of the company.
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On applications and allotment - Rs 10 per share (including premium)
On first and final call - the balance amount
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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.
State, whether the following statements is True or False.
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Short Answer Question
When can shares be Forfeited?
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| On application and allotment | ₹ 50 per share, |
| On first call | ₹ 25 per share, |
| On second and final call | ₹ 25 per share. |
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Give journal entries in the company's books to record the forfeited shares and their reissue.
Show the forfeiture and reissue entries under each of the following cases:
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(ii) Y Ltd. forfeited 400 shares of ₹ 10 each, fully called-up, held by Mr. B for non-payment of final call money of ₹ 4 per share. These shares were reissued to Mr. T at ₹ 12 per share as fully paid-up.
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Pass necessary journal entries in the books of the company for the following transactions:
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Give necessary entries in company's Journal and the Balance Sheet.
Jeevan Dhara Ltd. invited applications for issuing 1,20,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows
| On application | ---- | ₹ 2 per share, |
| On allotment |
---- |
₹ 5 per share(including premium), |
| On first and final call |
---
|
Balance. |
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Pass necessary journal entries for the above transactions in the books of Jeevan Dhara Ltd.
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On Allotment: ₹ 15 per share (including premium ₹ 5)
On First Call: ₹ 15 per share
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Share Forfeiture account is a ________.
The balance of share forfeited account after the reissue of forfeited shares is transferred to ______.
Balance of share forfeiture account is shown in the balance sheet under the item ______.
When a company repurchase its own share from the market to reduce the number of share it is called ______.
Which of the following is a free reserve?
What will be the correct sequence of events?
- Forfeiture of shares.
- Default on Calls.
- Re-issue of shares.
- Amount transferred to capital reserve.
If a share of ₹ 10 on which ₹ 8 has been paid up is forfeited, it can be reissued at the minimum price of ______.
Z and Co. forfeited 100 shares of ₹ 10 each for non-payment of the final call of ₹ 2 per share. All the forfeited shares were re-issued at ₹ 9 per share. What amount will be transferred to Capital Reserve A/c?
Balance of Forfeited Shares Account after reissue of forfeited shares is transferred to ______.
A forfeited share can ______
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?
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:
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?
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.
Assertion: A company can reissue a forfeited share at an amount which is less than the amount not received on it.
Reason: A company can write off the net loss made on the reissue of a forfeited share from its capital reserve.
Which one of the following is correct?
