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प्रश्न
X Ltd. invited applications for issuing 75,000 equity shares of Rs 10 each at a premium of Rs 5 per share. The amount was payable as follows:
On applications and allotment - Rs 9 per share (including premium)
On first and final call - the balance amount
Applications for 3,00,000 shares were received. Applications for 2,00,000 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 1,500 shares applied by Ravi. His shares were forfeited. The forfeited shares were re-issued at a discount of Rs 4 per share.
Pass necessary journal entries for the above transactions in the books of X 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 3,00,000 of Rs 9 each including premium of Rs 5 each) |
27,00,000
|
27,00,000
|
||
|
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 2,00,000 share refunded and rest is adjusted to share first and final call) |
27,00,000
|
3,00,000 3,75,000 18,00,000 2,25,000
|
||
|
Share First and Final Call A/c Dr. To Share Capital A/c (Being share first and final Call due on 75,000 shares of Rs 6 each) |
4,50,000
|
4,50,000
|
||
|
Bank A/c Dr. To Share First and Final Call A/c (Being share first and final call received) |
2,21,625
|
2,21,625
|
||
|
Share Capital A/c Dr. To Share Forfeiture A/c To Share First and Final Call A/c (Being 1,125 share were forfeited for non-payment of share first and final of Rs 6 each) |
11,250
|
7,875 3,375
|
||
|
Bank A/c Dr. Share Forfeited A/c Dr. To Share Capital A/c (Being 1,125 forfeited share were re-issued at a discount of Rs 4 per share) |
6,750 4,500
|
11,250
|
||
|
Share Forfeiture A/c Dr. To Capital Reserve A/c (Being share forfeiture transferred to capital reserve) |
3,375
|
3,375
|
||
| Computation Table | |||||||||
| Category | Share Applied |
Share Allotted |
Money received on Application n and Allotment @ Rs 9 each including premium of Rs 5 each |
Money transfers to share capital@ Rs 4 each |
Money transfer to securities premium @ Rs 5 each |
Excess Application on and Allotment money |
Share first and final call due @Rs 6 each |
Amount receivables on share first and final call after adjustment |
Money Refunded |
| I | 2,00,000 | Nil | 18,00,000 | 18,00,000 | |||||
| II | 1,00,000 | 75,000 | 9,00,000 | 3,00,000 | 3,75,000 | 2,25,000 | 4,50,000 | 2,21,625 | |
| 3,00,000 | 75,000 | 27,00,000 | 3,00,000 | 3,75,000 | 2,25,000 | 4,50,000 | 2,21,625 | 18,00,000 | |
Working Note:
Those who applied for 1,00,000 shares, allotted = 75,000 Shares
Those who applied for 1,500 shares, allotted = `75000 xx 1500/100000` = 1125 share
Share Application and Allotment received on 1,500 glares of Rs 9 each
(including premium of Rs 5 each) = Rs 13,500
Shares Allotted (1,125 × 9) = Rs 10,125
Excess Application and Allotment money received = Rs 3,375
Share First and Final Call due on 1,125 shares of Rs 6 each = Rs 6,750
Excess Application and Allotment money received = Rs 3,375
Share First and Final Call not received = Rs 3,375 (6250 – 3,375)
Therefore, Share First and final Call received = Rs 2,21,625 (4,50,000 – 2,25,000 – 3,375)
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संबंधित प्रश्न
What is the maximum amount of discount at which forfeited share can be re-issued?
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.
'Blur Star Ltd.' was registered with an authorized capital of Rs 2,00,000 divided into 20,000 shares of Rs 10 each. 6,000 of these shares were issued to the vendor for building purchased. 8,000 shares were issued to the public and Rs 5 per share were called up as follows:
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
On 1,250 shares - Rs 3 per share
On 750 shares - Rs 2 per share
The directors forfeited 750 shares on which Rs 2 per share were received.
Pass necessary journal entries for the above transactions in the books of Blue Star Ltd
KY Ltd. invited applications for issuing 60,000 equity shares of Rs 10 each at a premium of `4 per share. The amount was payable as follows:
On applications and allotment - Rs 8 per share (including premium)
On first and final call - the balance amount
Applications for 2,00,000 shares were received. Applications for 80,000 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 600 shares applied by Ravi. His shares were forfeited. The forfeited shares were re-issued at a discount of Rs 8 per share.
Pass necessary journal entries for the above transactions in the books of KY Ltd
Select the appropriate answer from the alternative given below and rewrite the sentence.
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Long Answer Question
Explain the term ‘Forfeiture of Shares’ and give the accounting treatment on forfeiture.
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| On second and final call | ₹ 25 per share. |
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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?
A Company forfeited 1,000 shares of ₹ 10 each, ₹ 7 called up for non-payment of first call of ₹ 2 per share. All these shares were reissued at ₹ 5 per share ₹ 7 paid-up. The amount transferred 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 ______.
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?
Tulip Ltd. allotted 45,000 Equity shares of ₹ 10 each to the public. The first and final call of ₹ 2 per share was not received on 1,000 shares, which were forfeited by the company. Later, 600 of the forfeited shares were reissued at ₹ 7 fully paid-up. What is the Subscribed Capital of the company?
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.
