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प्रश्न
XYZ Ltd . issued a prospectus inviting applications for 2,000 shares of ₹ 10 each at a premium of ₹ 4 per share , payable as:
| On application | --- | ₹ 6 (including ₹ 1 premium) |
| On allotment | --- | ₹ 2 (including ₹ 1 premium) |
| On first call | --- | ₹ 3 (including ₹ 1 premium) |
| On second and final call | --- | ₹ 3 (including ₹ 1 premium) |
Applications were received for 3,000 shares and pro rata allotment was made on the applications for 2,400 shares. It was decided to utilise excess application money towards the amount due on allotment .
X, to whom 40 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call , his shares were forfeited.
Y, who applied for 72 shares failed to pay the two calls and on his such failure , his shares were forfeited.
Of the shares forfeited , 80 shares were sold to Z credited as fully paid-up for ₹ 9 per share , the whole of Y's shares being included . Prepare Journal , Cash Book and the Balance Sheet .
उत्तर
Applied shares 3,000
|
Allotment made as: |
|
Payable as: |
|
|||
|
Applied |
|
Allotted |
|
Application |
Rs 6 |
(5 + 1) |
|
2,400 |
|
2,000 |
|
Allotment |
Rs 2 |
(1 + 1) |
|
600 |
|
NIL |
|
First Call |
Rs 3 |
(2 + 1) |
|
|
|
|
|
Final Call |
Rs 3 |
(2 + 1) |
|
3,000 |
|
2,000 |
|
|
Rs 14 |
(10 + 4) per share |
Cash Book
Dr. Cr.
|
Date |
Particulars |
Bank Rs |
Date |
Particulars |
Bank Rs |
|
|
Share Application |
18,000 |
|
Share Application |
3,600 |
|
|
(3,000 shares × Rs 6) |
|
|
(600 shares × Rs 6) |
|
|
|
Share Allotment (see note-2) |
1,568 |
|
|
|
|
|
Share First Call (see note-4) |
5,700 |
|
|
|
|
|
Share Final Call (see note-5) |
5,700 |
|
|
|
|
|
Share Capital |
720 |
|
Balance c/d |
28,088 |
|
|
(80 shares × Rs 9) |
|
|
|
|
|
|
|
31,688 |
|
|
31,688 |
Journal Entries
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
Share Application A/c |
Dr. |
|
14,400 |
|
|
|
To Share Capital A/c |
|
|
10,000 |
|
|
|
To Securities Premium A/c |
|
|
2,000 |
|
|
|
To Share Allotment A/c |
|
|
2,400 |
|
|
|
(Share application money of 2,000 shares transferred to Share Capital and Securities Premium at Rs 5 and Re 1 each respectively and Rs 2,400 adjusted on allotment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
4,000 |
|
|
|
To Share Capital A/c |
|
|
2,000 |
|
|
|
To Securities Premium A/c |
|
|
2,000 |
|
|
|
(Allotment due on 2,000 shares at Rs 2 each including Re 1 premium) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share First Call A/c |
Dr. |
|
6,000 |
|
|
|
To Share Capital A/c |
|
|
4,000 |
|
|
|
To Securities Premium A/c |
|
|
2,000 |
|
|
|
(First call due on 2,000 shares at Rs 3 each including Re 1 premium) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Capital A/c (40 shares × Rs 8) |
Dr. |
|
320 |
|
|
|
Securities Premium A/c |
Dr. |
|
72 |
|
|
|
To Share Forfeiture A/c |
|
|
240 |
|
|
|
To Share Allotment A/c |
|
|
32 |
|
|
|
To Share First Call A/c |
|
|
120 |
|
|
|
(40 shares of Rs 10 each Rs 8 called with premium forfeited for non-payment of amount due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Final Call A/c |
Dr. |
|
5,880 |
|
|
|
To Share Capital A/c |
|
|
3,920 |
|
|
|
To Securities Premium A/c |
|
|
1,960 |
|
|
|
(Final call due on 1,960 shares at Rs 3 each including Re 1 premium) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Capital A/c |
Dr. |
|
600 |
|
|
|
Securities Premium A/c |
Dr. |
|
120 |
|
|
|
To Share Forfeiture A/c |
|
|
360 |
|
|
|
To Share First Call A/c |
|
|
360 |
|
|
|
(60 shares forfeited for non-payment of amount due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
720 |
|
|
|
Share Forfeiture A/c |
Dr. |
|
80 |
|
|
|
To Shares Capital A/c |
|
|
800 |
|
|
|
(80 shares of Rs 10 each re-issued at Rs 9 per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
400 |
|
|
|
To Capital Reserve |
|
|
400 |
|
|
|
(Balance of 80 reissued shares in Share Forfeiture Account transferred to Capital Reserve) |
|
|
|
|
As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.
XYZ Ltd.
Balance Sheet
|
Particulars |
Note No. |
Amount (Rs) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
a. Share Capital |
1 |
19,920 |
|
b. Reserves and Surplus |
2 |
8,168 |
|
2. Non-Current Liabilities |
|
|
|
3. Current Liabilities |
|
|
|
Total |
|
28,088 |
|
II. Assets |
|
|
|
1. Non-Current Assets |
|
|
|
2. Current Assets |
|
|
|
a. Cash and Cash Equivalents |
3 |
28,088 |
|
Total |
|
28,088 |
NOTES TO ACCOUNTS
|
Note No. |
Particulars |
Amount (Rs) |
|
|
1 |
Share Capital |
|
|
|
|
Authorised Share Capital |
|
|
|
|
……. shares of Rs 10 each |
- |
|
|
|
Issued Share Capital |
|
|
|
|
2,000 shares of Rs 10 each |
20,000 |
|
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
|
1,980 shares of Rs 10 each |
19,800 |
19,920 |
|
|
Add: Shares Forfeited (20 shares × Rs 6) |
120 |
|
|
2 |
Reserves and Surplus |
|
|
|
|
Securities Premium |
7,768 |
8,168 |
|
|
Capital Reserve |
400 |
|
|
3 |
Cash and Cash Equivalents |
|
|
|
|
Cash at Bank |
28,088 |
|
Working Notes:
1. X’s Shares
Number of share applied by X= `2400/2000 xx 40 = 48 "Shares"`
|
Money received on application (48 shares × Rs 6) |
= |
288 |
|
Less: Money transferred to Shares Capital (40 shares × Rs 5) |
= |
200 |
|
Less: Securities Premium (40 shares × Re 1) |
= |
40 |
|
Excess money on application from X |
= |
48 |
|
Utilisation of excess application money received from X |
|
|
|
Share Capital due on Allotment (40 shares × Re 1) |
= |
40 |
|
Less: Excess money on Application from X |
= |
48 |
|
Excess money after adjustment of Share Capital on Allotment |
= |
8 |
|
Securities Premium due on Allotment (40 shares × Re 1) |
= |
40 |
|
Less: Excess money after adjustment of Share Capital on Allotment |
= |
8 |
|
Calls-in-Arrears of Securities Premium on Allotment |
= |
32 |
2. Share Allotment
|
Money due on allotment (2,000 shares × Rs 2) |
= |
4,000 |
|
Less: Excess money on Application |
= |
2,400 |
|
|
= |
1,600 |
|
Less: Calls-in-Arrears on X‘s shares (securities premium) |
= |
32 |
|
Money received on allotment |
= |
Rs 1,568 |
3. Y’s Shares
Number of shares allotted=`2000 / 2400 xx 72 = 60 "shares"`
4. Share First Call
|
Money due on Share First Call (2,000 shares × Rs 3) |
= |
6,000 |
|
Less: Calls-in-Arrears on X‘s shares (40 shares × Rs 3) |
= |
120 |
|
Less: Calls-in-Arrears on Y’s shares (60 shares × Rs 3) |
= |
180 |
|
Money received on Share First Call |
= |
5,700 |
5. Share Final Call
|
Money due on share Final Call (1,960 shares × Rs 3) |
= |
5,880 |
|
Less: Calls-in-Arrears on Y’s shares (60 shares × Rs 3) |
= |
180 |
|
Money received on Share Final Call |
= |
5,700 |
Capital Reserve
X’s shares
|
Money received from X for 40 shares |
= |
288 |
|
Less: Securities Premium adjusted on Application |
= |
40 |
|
Less: Securities Premium adjusted on Allotment |
= |
8 |
|
Balance in the Share Forfeiture before re-issue of shares Cr. |
|
240 |
|
Share Forfeiture Credit |
= |
Rs |
6 |
per share |
|
Share forfeiture Debit |
= |
Rs |
1 |
per share |
|
|
|
Rs |
5 |
per share |
Capital Reserve on re-issue of 20 shares = Rs 5 × 20 shares = Rs 100
Y’s Shares
Share Forfeiture on 60 Shares of Y
|
Share Forfeiture Credit |
Rs 6 |
per share |
|
Less: Share Forfeiture Debit |
Rs 1 |
per share |
|
|
Rs 5 |
per share |
Capital Reserve on re-issue of 60 shares of Y = Rs 5 × 60 shares = Rs 300
Total Capital Reserve on 80 shares = Capital Reserve on re-issue of 20 shares of X + Capital Reserve on re-issue of 60 shares of Y = 100 + 300 = Rs 400
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
'Amrit Dhara Ltd.' invited applications for issuing 80,000 equity shares of Rs 10 each. The amount was payable as follows:
On application and allotment - Rs 2 per share
On the first call - Rs 4 per share
On the second and final call the balance
Applications for 1,00,000 shares were received. Shares were allotted on pro-rata basis to all the
applicants. Excess money received with applications was adjusted towards sums due on the first call. Manohar who had applied for 2,000 shares failed to pay the first call and his shares were immediately forfeited. Afterwards, a second and final call was made. Mahan who was allotted 2,400 shares failed to pay the second and final call. His shares were also forfeited. All the forfeited shares were re-issued at Rs 9 per share as fully paid up.
Pass necessary Journal Entries in the books of the company for the above transactions
'Sulabh Ltd.' invited applications for issuing 1,50,000 equity shares of Rs 10 each at a premium of Rs 3 per share. The amount was payable as follow
On application - Rs 2 per share
On allotment - Rs 6 per share (including premium)
On first and final call - the balance
Applications for 2,00,000 shares were received and shares were allotted on pro-rata basis to all the applicants. Excess money received with applications was adjusted towards sums due on allotment. Suman who had applied for 2,000 shares failed to pay the allotment and call money. Raman failed to pay the first and final call on his 500 shares. Shares of both Suman and Raman were forfeited after the final call was made. The forfeited shares were re-issued for Rs 12 per share as fully paid up.
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.
'BMY Ltd.' invited applications for issuing 1,00,000 equity shares of Rs 10 each at a premium of `10 per share. The amount was payable as follows :
On application - Rs 10 per share (including Rs 5 premium)
On allotment - The balance
The issue was fully subscribed. A shareholder holding 300 shares paid the full share money with
an application. Another shareholder holding 200 shares failed to pay the allotment money. His shares were forfeited. Later on, these shares were re-issued for Rs 4,000 as fully paid up.
Pass necessary journal entries for the above transaction in the books of BMY Ltd.
'X Ltd.' invited applications for issuing 10,000 equity shares of Rs 100 each at a premium of Rs 100 per share. The amount was payable as follows:
On application and allotment - Rs 100 per share (including Rs 50 premium)
On first and final call - The balance
The issue was fully subscribed. A shareholder holding 500 shares paid the full share money with an application. Another shareholder holding 200 shares failed to pay the first and final call money. His shares were forfeited. The forfeited shares were re-issued for Rs 19,000 as fully paid up.
Pass necessary journal entries for the above transactions in the books of the company
'X Ltd.' invited applications for issuing 10,000 equity shares of Rs 100 each at a premium of `100 per share. The amount was payable as follows:
On application and allotment - Rs 100 per share (including Rs 50 premium)
On first and final call - The balance
The issue was fully subscribed. A shareholder holding 500 shares paid the full share money with an application. Another shareholder holding 200 shares failed to pay the first and final call money. His shares were forfeited. The forfeited shares were re-issued for Rs 19,000 as fully paid up.
Pass necessary journal entries for the above transactions in the books of the company
'Guru Limited' invited applications for issuing 80,000 equity shares of Rs 10 each at a premium of Rs 10 per share. The amount was payable as follows:
On application and allotment - Rs 10 (including Rs 5 premium)
On first and final call - Rs 10 (including Rs 5 premium)
Applications for 1,00,000 share were received. Applications for 10,000 shares were rejected and
application money was refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess application money received from applicants to whom shares were allotted on pro-rata basis was adjusted towards sums due on first and final call. All calls were made and were duly received except the first and final call money from Kumar who had applied for 1,800 shares. His shares were forfeited. The forfeited shares were re-issued at Rs 9 per share as fully paid up. Pass necessary journal entries for the above transactions in the books of 'Guru Limited'.
'Kalyan Limited' invited applications for issuing 90,000 equity shares of Rs 10 each at a discount of 8%. The amount was payable as follows:
On application — Rs 2 per share
On allotment — Rs 3 per share
On first and final call — The balance
Application for 87,000 shares was received. Shares were allotted to all the applicants. A shareholder, Shyam who had applied for 1,600 shares failed to pay the allotment money and his shares were immediately forfeited. Later on, the first and final call was made. Another shareholder Ram, to whom 1,500 shares were allotted failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares, 2,000 shares were re-issued at Rs 9 per share as fully paid-up. The re-issued shares included all the shares of Ram.
Pass necessary journal entries for the above transactions in the books of 'Kalyan Limited'
X Ltd., issued 50,000 shares of Rs 10 each at a premium of Rs 2 per share payable as follows:
Rs 3 on application
Rs 6 on allotment (including premium) and Rs 3 on call
Applications were received for 75,000 shares and a pro-rata allotment was made as follows:
To the applicants of 40,000 shares, 30,000 shares were issued and for the rest 20,000 shares were issued. All money due were received except the allotment and call money from Ram who had applied for 1,200 shares (out of the group of 40,000 shares). All his shares were forfeited. The forfeited shares were re-issued for Rs 7 per share fully paid up. Pass necessary Journal Entries for the above transaction.
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.
A public company forfeits share on non-payment of final call only.
X Ltd. forfeited 900 Equity Shares of ₹ 100 each for the non-payment of allotment money of ₹ 30 per share and the first call of ₹ 20 per share. The second and final call of ₹ 25 per share has not been made . The forfeited shares were reissued for ₹ 90 per share , ₹ 75 paid-up. Journalise the above.
Show the forfeiture and reissue entries under each of the following cases:
(i) X Ltd. forfeited 300 shares of ₹ 10 each, ₹ 8 called-up held by Mr. A for non-payment of second call money of ₹ 3 per share. These shares were reissued to Mr. Z for ₹ 10 per share as fully paid-up.
(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.
(iii) Light Ltd. forfeited 250 shares of ₹ 10 each, fully called-up held by Mr. C for non-payment of allotment money of ₹ 3 per share and first and final call money of ₹ 4 per share. These shares were reissued @ ₹ 8 per share as fully paid-up to Mr. P.
The Directors of a company forfeited 300 shares of ₹ 10 each issued at a premium of ₹ 3 per share , for the non-payment of the first call money of ₹ 2 per share . The final call of ₹ 2 per share has not been made. Half the forfeited shares were reissued at ₹ 1,500 as fully paid-up. Record the journal entries for the forfeiture and reissue of shares.
Pass necessary journal entries in the books of the company for the following transactions:
Vishesh Ltd. forfeited 1,000 Equity Shares of ₹ 10 each issued at a premium of ₹ 2 per share for non-payment of allotment money of ₹ 5 per share including premium. The final call of ₹ 2 per share was not yet called on these shares. Of the forfeited shares 800 shares were reissued at ₹ 12 per share as fully paid-up.
The remaining shares were reissued at ₹ 11 per share fully paid-up.
150 shares of ₹ 10 each issued at a premium of ₹ 4 per share payable with allotment were forfeited for non-payment of allotment money of ₹ 8 per share including premium. The first and final call of ₹ 4 per Pass Journal entries in the books of X Ltd. for the above.
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.
Krishna & Co. Ltd. with an authorised capital of ₹ 2,00,000 divided into 20,000 Equity Shares of ₹ 10 each, issued the entire amount of the shares payable as:
₹ 5 on application (including premium ₹ 2 per share),
₹ 4 on allotment, and
₹ 3 on call.
All share money is received in full with the exception of the allotment money on 200 shares and the call money on 500 shares (including the 200 shares on which the allotment money has not been paid).
The above 500 shares are duly forfeited and 400 of these( including the 200 shares on which allotment money has not been paid) are reissued at ₹ 7 per share payable by the purchaser as fully paid-up. Pass journal entries(including cash transactions) and show the balances in the Balance Sheet giving effect to the above transactions.
Himalaya Company Limited issued for public subscription 1,20,000 equity shares of ₹ 10 each at a premium for ₹ 2 per share payable as under:
| With Application | --- | ₹ 3 per share, |
| On allotment (including premium) | -- | ₹ 5 per share, |
| On First call | -- | ₹ 2 per share |
| On Second and Final call | -- | ₹ 2 per share. |
Applications were received for 1,60,000 shares . Allotment was made on pro rata basis . Excess money on application were adjusted against the amount due on allotment.
Rohan to whom 4,800 shares were allotted failed to pay for the two calls. These shares were subsequently forfeited after the second call was made . All the shares forfeited were reissued to Teena as fully paid at ₹ 7 per share.
Record journal entries and show the transactions relating to share capital in the company's Balance Sheet.
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.
Money received in advance from shareholders before it is actually called-up by the directors is ______.
Vishnu Ltd. forfeited 20 shares of ₹10 each, ₹8 called up, on which John had paid application and allotment money of ₹5 per share, of these, 15 shares were reissued to Parker as fully paid up for ₹6 per share. What is the balance in the share Forfeiture Account after the relevant amount has been transferred to Capital Reserve Account?
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:
When shares are forfeited, the Share Capital Account is debited with the:
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 in Share Forfeiture Account is shown in the balance sheet under the head of ______.
Balance of Forfeited Shares Account after reissue of forfeited shares is transferred to ______.
Which of the following statement is false?
When forfeited shares are re-issued the amount of discount allowed on these shares cannot exceed ______.
If 10,000 shares of ₹ 10 each were forfeited for non-payment of final call money of ₹ 3 per share and only 7,000 shares were re-issued @ ₹ 11 per share as fully paid up, then what is the amount of maximum possible discount that company can allow at the time of re-issue of the remaining 3,000 shares?
Pass entries for forfeiture and re-issue in the following case.
Ratan Ltd. forfeited 3,000 shares of ₹ 10 each (issued at ₹ 2 premium) for non-payment of first call of ₹ 2 per share. Final call of ₹ 3 per share was not yet made. Out of these 2,000 shares were re-issued at ₹ 10 per share as fully paid.
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?
Lilly Ltd. forfeited 100 shares of ₹ 10 each issued at 10% premium (₹ 8 called up ) on which a shareholder did not pay ₹ 3 of allotment (including premium) and first call of ₹ 2. Out of these 60 shares were reissued to Ram as fully paid for ₹ 8 per share and 20 shares to Suraj as fully paid up @ ₹ 12 per share at different intervals of time.
Prepare Share Forfeiture account.
Savi Ltd. forfeited 50 shares of ₹ 100 each issued at a premium of 10%, on which allotment money of ₹ 30 per share (including premium) and first and final call of ₹ 40 per share were not received.
What is the minimum amount per share at which the company can reissue these shares?
