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Question
Alpha Ltd. issued 20,000 Equity Shares of ₹ 10 each at par payable: On application ₹ 2 per share; on allotment ₹ 3 per share; on first call ₹ 3 per share; on second and final call ₹ 2 per share.
Mr. Gupta was allotted 100 shares. Pass necessary Journal entry relating to the forfeiture of shares in each of the following alternative cases:
| Case I | If Mr. Gupta failed to pay the allotment money and his shares were immediately forfeited. |
| Case II | If Mr. Gupta failed to pay allotment money and on his subsequent failure to pay the first call, his shares were forfeited. |
| Case III | If Mr. Gupta failed to pay the first call and on his subsequent failure to pay the second and final call, his shares were forfeited |
Solution
|
Application |
₹ |
2 |
|
Allotment |
₹ |
3 |
|
First Call |
₹ |
3 |
|
Final Call |
₹ |
2 |
|
|
|
10 |
Books of Alpha Limited
Journal
|
Date |
Particulars |
L.F. |
Debit Amount (₹) |
Credit Amount (₹) |
||
|
Case I |
Share Capital A/c (100×5) |
Dr. |
|
500 |
|
|
|
|
To Share Forfeiture A/c |
|
|
200 |
||
|
|
To Share Allotment A/c |
|
|
300 |
||
|
|
(100 shares of Rs 10 each, Rs 5 called-up, forfeited for the non-payment of allotment) |
|
|
|
||
|
|
|
|
|
|
||
|
Case II |
Share Capital A/c (100 × 8) |
Dr. |
|
800 |
|
|
|
|
To Share Forfeiture A/c |
|
|
200 |
||
|
|
To Share Allotment A/c |
|
|
300 |
||
| To Share First Call A/c | 300 | |||||
|
|
(100 shares of Rs 10 each, Rs 8 called-up forfeited for non-payment allotment and first-call) |
|
|
|
||
|
|
|
|
|
|
||
|
Case III |
Share Capital A/c |
Dr. |
|
1,000 |
|
|
|
|
To Share Forfeiture A/c |
|
|
500 |
||
|
|
To Share First Call A/c |
|
|
300 |
||
| To Share Final Call A/c | 200 | |||||
|
|
(100 shares of Rs 10 each forfeited for the non-payment Rs 5 each) |
|
|
|
||
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