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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
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
Applications for 1,27,500 shares were received. Applications for 27,500 shares were rejected and shares were allotted on pro-rata basis to the remaining applicants. Excess money received on application and allotment was adjusted towards sums due to first and final call. The calls were made. A shareholder, who applied for 1,000 shares, failed to pay the first and final call money. His shares were forfeited. All the forfeited shares were reissued at Rs.150 per share fully paid up.
Pass necessary journal entries for the above transactions in the books of AB 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
Luxury Cars Ltd.' invited applications for issuing 10,000 equity shares of Rs 50 each at a premium of Rs 100 per share. The amount was payable as follows :
On application - Rs 75 per share (including Rs 50 premium)
On allotment - The balance
The issue was fully subscribed. A shareholder holding 400 shares paid his entire share money at the time of application. Another shareholder holding 300 shares did not pay the allotment money. His shares were forfeited. The forfeited shares were later on re-issued for Rs 90 per share as fully paid up.
Pass necessary journal entries for the above transaction in the books of the company.
JY Ltd. invited applications for issuing 70,000 equity shares of Rs 10 each at a discount of 10%. The amount was payable as follows:
On applications and allotment - Rs 4 per share
On first and final call - the balance amount
Application for 2,00,000 shares were received. Applications for 60,000 shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The first and final call was made. All money was received except on 1,400 shares applied by Naresh. His shares were forfeited. The forfeited shares were re-issued at the maximum discount permissible under the law.
Pass necessary journal entries for the above transactions in the books of JY Ltd.
On 1st April 2012, Micro-tech Ltd. was formed with an authorised capital of Rs 50,00,000 divided into 5,00,000 equity shares of Rs 10 each. The company issued a prospectus inviting applications for 4,50,000 equity shares. The company received applications for 4,20,000 equity shares.
During the first year, Rs 8 per share were called. Ram holding 1,000 shares and Rajesh holding 2,000 shares did not pay the first call of Rs 2 per share. Rajesh's shares were forfeited after the first call and later on 1,500 of the forfeited share were re-issued at Rs 6 per share, Rs 8 called up. Show the following:
a. Share Capital in the Balance Sheet of the company as per revised Schedule VI Part I of the Companies Act, 1956.
b. Also, prepare 'Notes to Accounts' for the same
GY Ltd. invited applications for issuing 85,000 equity shares of Rs 10 each at a discount of 10%. The amount was payable as follows:
On applications and allotment - Rs 4 per share
On first and final call - the balance amount
Application for 2,00,000 shares was received. Applications for 30,000 shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The first and final call was made. All money was received except on 1,700 shares applied by Hari. His shares were forfeited. The forfeited shares were re-issued at the maximum discount permissible under the law.
Pass necessary journal entries for the above transactions in the books of the company.
Select the appropriate answer from the alternative given below and rewrite the sentence.
When shares are forfeited, share capital account is _____________.
Give one word / Term / phrase for the following statement :
The account to which excess amount on share forfeited a/c is transferred.
(Forfeiture of shares issued at premium)
The Century Ltd. issued 8,000 shares of Rs 100 at a premium of 10% payable as under-
| On Application | Rs 25 | On Allotment | Rs 40 (including premium) |
| On First Call | Rs 20 | On Second Call | Rs 25 |
Company called up allotment and both the calls which were duly received except Ramesh to whom 500 shares were allotted failed to pay allotment and calls. Prepare Journal of Century Ltd.
State, whether the following statements is True or False.
A public company forfeits share on non-payment of final call only.
State, whether the following statements is True or False.
Share forfeited balance is transferred to Capital Reserve Account.
The Directors of M Ltd resolved on 1st May, 2015 that 2,000 Equity Shares of ₹ 10 each , ₹ 7.50 paid be forfeited for non-payment of final call of ₹ 2.50 . On 10th June, 2015, 1,800 of these shares were reissued for ₹ 6 per share . Give necessary Journal entries .
The Hindustan Manufacturing Ltd. had a total subscribed capital of ₹ 10,00,000 in Equity Shares of ₹ 10 each of which ₹ 7.50 were called-up. A final call of ₹ 2.50 was made and all amount paid except two calls of ₹ 2.50 each in respect of 100 shares held by D . These shares were forfeited and reissued at ₹ 8 per share .
Pass necessary journal entries (including that of cash) to record the transactions of final call , forfeiture of shares and reissue of forfeited shares . Also, prepare the Balance Sheet of the company.
Bee Ltd. Company forfeited 100 Equity Shares of the face value of ₹ 10 each, ₹ 6 per share called-up, for non-payment of first call of ₹ 2 per share. The forfeited shares were subsequently reissued as fully paid-up @ ₹ 7 each.
Give necessary entries in the company's Journal.
Give necessary journal entries:
(i) The Directors of Devendra Ltd. resolved on 1st January 2010 that Equity Shares of ₹ 10 each, ₹ 8 paid-up be forfeited for non-payment of final call of ₹ 2. On 1st February, 60 of these shares were reissued @ ₹ 7 per share as fully paid-up.
(ii) Virender Limited forfeited 20 shares of ₹ 100 each(₹ 60 called-up) issued at par to Mukesh on which he had paid ₹ 20 per share. Out of these, 15 shares were reissued to Sanjeev as ₹ 60 paid-up for ₹ 45 per share.
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.
'Telecom Ltd.' issued 20,000 Equity Shares of ₹ 10 each at a premium of ₹ 5 per share, payable as: ₹ 7 (including premium) on application, ₹ 5 on allotment and the balance after three months of allotment. A shareholder to whom 200 shares were allotted failed to pay the allotment and call money and his shares were forfeited. 160 of the forfeited shares were reissued for ₹ 1,600.
Give necessary entries in company's Journal and the Balance Sheet.
Midee Ltd. invited applications for issuing 27,000 shares of ₹ 100 each payable as follows:
₹ 50—per share on application;
₹ 10—per share on allotment; and
Balance—on First and Final call.
Applications were received for 40,000 shares. Full allotment was made to the applicants of 7,000 shares. The remaining applicants were allotted 20,000 shares on pro rata basis. Excess money received on applications was adjusted towards allotment and call.
Asha, holding 600 shares was belonged to the category of applicants to whom full allotment was made ,paid the call money at the time of allotment . Ankur, who belonged to the category of applicants to whom shares were allotted on pro rata basis did not pay anything after application on his 200 shares . Ankur's shares were forfeited after the First and Final call. These shares were later reissued at ₹ 105 per share as fully paid-up.
Pass necessary journal entries in the books of Midee Ltd . for the above transactions, by opening Calls-in-Arrears and Calls-in-Advance Accounts wherever necessary.
Choose the appropriate alternative from the given options:
Vanya Ltd. forfeited 20,000 equity shares of ₹ 100 each for non-payment of first and final call of ₹ 40 per share. The maximum amount of discount at which these shares can be re-issued will be:
Share Forfeiture account is a ________.
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.
Shares can be forfeited for?
Forfeiture of shares results in the reduction of:
When forfeited shares are re-issued the amount of discount allowed on these shares cannot exceed ______.
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 amount of share forfeiture would be reflected in the balance sheet?
At the time of forfeiture, the share Capital Account is debited with ______
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.
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 ______.
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?
