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प्रश्न
Vraj Ltd. issued 40,000 equity shares of ₹ 20 each payable as follows:
On Application: ₹ 4
On Allotment: ₹ 6
On First Call: ₹ 6
On Second Call: ₹ 4
The company received applications for 50,000 equity shares. Allotment of shares was made on pro-rata basis. Share allotment and calls were made and as also received except Ravi holding 100 shares failed to pay both the calls. His shares were forfeited after second call.
Record the above transactions in the books of Vraj Ltd.
उत्तर
| Journal Entries in the books of Vraj Limited | |||||
| Date | Particulars | L. F. | Debit Amount (₹) | Credit Amount (₹) | |
| 1. | Bank A/c | Dr. | 2,00,000 | ||
| To Equity share Application A/c | 2,00,000 | ||||
| (Being application money ₹ 4 per share received on 50,000 equity shares) | |||||
| 2. | Equity Share Application A/c | Dr. | 2,00,000 | ||
| To Equity Share Capital A/c | 1,60,000 | ||||
| To Equity Share Allotment A/c | 40,000 | ||||
| (Being share application money transferred to share capital A/c and share Allotment A/c) | |||||
| 3 | Equity Share Allotment A/c | Dr. | 2,40,000 | ||
| To Equity Share Capital A/c | 2,40,000 | ||||
| (Being allotment money ₹ 6 per share due on 40,000 equity shares) | |||||
| 4. | Bank A/c | Dr. | 2,00,000 | ||
| To Equity Share Allotment A/c | 2,00,000 | ||||
| (Being allotment money received from shareholders) | |||||
| 5. | Equity share First call A/c | Dr. | 2,40,000 | ||
| To Equity Share Capital A/c | 2,40,000 | ||||
| (Being first call money ₹ 6 per share due on 40,000 equity shares) | |||||
| 6. | Bank A/c | Dr. | 2,34,000 | ||
| To Equity Share First Call A/c | 2,34,000 | ||||
| (Being first call money received on all the equity shares except 1000 shares held by Raja) | |||||
| 7. | Equity Share Second Call A/c | Dr. | 1,60,000 | ||
| To Equity Share Capital A/c | 1,60,000 | ||||
| (Being second call money ₹ 4 per share due on 40,000 equity shares) | |||||
| 8. | Bank A/c | Dr. | 1,56,000 | ||
| To Equity share second call A/c | 1,56,000 | ||||
| (Being second call money received on all shares except 1000 shares held by Ravi) | |||||
| 9. | Share Capital A/c | Dr. | 20,000 | ||
| To Equity Shares First Call A/c | 6,000 | ||||
| To Equity Shares Second Call A/c | 4,000 | ||||
| To Share Forfeiture A/c | 10,000 | ||||
| (Being 1000 equity shares forfeited for non-payment of 1st and 2nd calls) | |||||
APPEARS IN
संबंधित प्रश्न
The balance of Share Forfeiture A/c is transferred to _________ account after re-issue of these share.
When shares are forfeited the Share Capital Account is _________.
State true or false with reason.
Directors can forfeit the shares for any reason.
State whether you agree or disagree with following statement:
Directors can re-issue forfeited shares.
Answer in one sentence only.
What is Forfeiture of Shares?
One shareholder holding 500 equity shares paid share application money @ ₹ 3 Allotment money @ ₹ 4 per share and failed to pay final call of ₹ 3 per share, his shares were forfeited. Calculate the amount of share forfeiture.
Select the correct answer from the options given below and rewrite the statement.
Company can ______ shares on non-payment of calls.
Write a word or a term or a phrase which can substitute the following statement.
Penal action taken by company on non-payment of calls.
State whether the following statement is true or false.
Only fully paidup shares can be forfeited.
Complete the sentence.
Company can forfeit only ______ paid shares.
Correct the underlined word and rewrite the following sentence.
Only fully paid up shares can be forfeited.
Explain the following term/concept.
Forfeiture of shares
Study the following case/situation and express your opinion.
Red Tubes Ltd. has made a demand on its shareholders to pay the balance unpaid amount of ₹ 20/- per share (having a face value of ₹ 100) held by them. The company has sent letters asking the shareholders to pay the money to its Bankers within the specified time.
- Are the shareholders liable to pay ₹ 20 for the shares held by them?
- Name the letter sent by the company to its shareholders asking them to pay ₹ 20/-
- What happens if a shareholder fails to pay the money within the specified time?
Study the following case/situation and express your opinion.
X owns 100 shares while Y owns 500 shares of Red Tubes Ltd. The company has asked all its shareholders to pay the balance unpaid amount of ₹ 20. X pays the full money demanded by the company. Y, who is in a bad financial position is unable to pay any money.
- Can the company forfeit the shares of Y?
- Can the company forfeit the shares of X?
- Can X transfer his shares?
Answer in brief.
What are the effects of forfeiture of shares?
Justify the following statement.
Board of Directors have the authority to forfeit shares.
The Subscribed Capital of Parag Limited is 30,000 equity shares of ₹ 100 each and 50,000 preference shares of ₹ 100 each. On both of these shares ₹ 80 per share were called-up.
The Directors forfeited 500 equity shares held by Ashish who failed to pay First and Second Call each of ₹ 20 per share. They also forfeited 500 preference shares of Ashok who failed to pay ₹ 20 per share on Allotment, ₹ 20 per share on First call and ₹ 20 per share on Second call.
The Director re-issued these forfeited shares of Ashish at ₹ 60 per share, ₹ 80 paid up and those of Ashok at ₹ 72 per share ₹ 80 paid up. All re-issued shares were taken up by Anagha.
Pass Journal entries to record the forfeiture and re-issue of shares in the books of Parag Ltd.
