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Question
Journalise the following transactions in the books Bhushan Oil Ltd.:
(a) 200 shares of Rs. 100 each issued at a premium of Rs. 10 were forfeited for the non-payment of allotment money of Rs. 60 per share. The first and final call of Rs. 20 per share on these shares were not made. The forfeited shares were reissued at Rs. 70 per share as fully paid-up.
(b) 150 shares of Rs. 10 each issued at a premium of Rs. 4 per share payable with allotment were forfeited for non-payment of allotment money of Rs. 8 per share including premium. The first and final calls of Rs. 4 per share were not made. The forfeited shares were reissued at Rs. 15 per share fully paid-up.
(c) 400 shares of Rs. 50 each issued at par were forfeited for non-payment of final call of Rs. 10 per share. These shares were reissued at Rs. 45 per share fully paid-up.
Solution
Case (a)
Books of Bhushan Oil Ltd.
|
Date |
Particulars |
L.F. |
Debit Amount (₹) |
Credit Amount (₹) |
||||
|
|
Share Capital A/c (200 ×80) |
Dr. |
|
16,000 |
|
|||
| Securities Premium A/c (200 × 10) | Dr. | 2,000 | ||||||
|
|
|
To Share Allotment A/c (200 × 60) |
|
|
|
12,000 |
||
|
|
|
To Share Forfeiture A/c (200 ×30) |
|
|
6,000 |
|||
|
|
(200 shares forfeited @ ₹100 each issued at a premium of ₹10 for the nonpayment of allotment money ₹60 per share) |
|
|
|
||||
|
|
Bank A/c (200x 70) |
Dr. |
|
14,000 |
|
|||
|
|
Share Forfeiture A/c (200 ×30) |
Dr. |
|
6,000 |
|
|||
|
|
|
To Share Capital A/c (200 × 100) |
|
|
20,000 |
|||
|
|
(200 shares reissued @ ₹70 per share fully paid-up) |
|
|
|
||||
Case (b)
|
Date |
Particulars |
L.F. |
Debit Amount (₹) |
Credit Amount (₹) |
|||
|
|
Share Capital A/c |
Dr. |
|
900 |
|
||
|
|
Securities Premium A/c |
Dr. |
|
600 |
|
||
|
|
|
To Share Allotment A/c |
|
|
1,200 |
||
|
|
|
To Share Forfeiture A/c |
|
|
300 |
||
|
|
(150 shares @ ₹10 each forfeited for nonpayment of allotment money Rs 8 per share including premium ₹4) |
|
|
|
|||
|
|
Bank A/c |
Dr. |
|
2,250 |
|
||
|
|
|
To Share Capital A/c |
|
|
1,500 |
||
|
|
|
To Securities Premium A/c |
|
|
750 |
||
|
|
(150 shares @ ₹10 each reissued For ₹15 per share fully paid-up) |
|
|
|
|||
|
|
Share Forfeiture A/c |
Dr. |
|
300 |
|
||
|
|
|
To Capital Reserve A/c |
|
|
300 |
||
|
|
(Balance of Share Forfeiture Account transferred to Capital Reserve Account) |
||||||
Case (c)
|
Date |
Particulars |
L.F. |
Debit Amount (₹) |
Credit Amount (₹) |
||
|
|
Share Capital A/c |
Dr. |
|
20,000 |
|
|
|
|
|
To Share Final Call A/c |
|
|
4,000 |
|
|
|
|
To Share Forfeiture A/c |
|
|
16,000 |
|
|
|
(400 shares @ ₹ 50 per share forfeited for nonpayment of Final Call Rs 10 per share) |
|
|
|
||
|
|
Bank A/c |
Dr. |
|
18,000 |
|
|
|
|
Share forfeiture A/c |
Dr. |
|
2,000 |
|
|
|
|
|
To Share Capital A/c |
|
|
|
20,000 |
|
|
(400 shares @ ₹50 each reissued for ₹45 fully paid-up) |
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
14,000 |
|
|
|
|
|
To Capital Reserve A/c |
|
|
14,000 |
|
|
|
(Balance in Share Forfeiture Account transferred to Capital Reserve Account) |
|
|
|
||
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