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Question
(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.
Solution
Books of Century Ltd
Journal Entry
| Date | Particulars | L.F. | Debit Amount (Rs.) | Credit Amount (Rs.) |
| Bank A/c Dr. To Share Application A/c (Share application received on 8,000 shares of Rs 25 each) |
200,000 | 200,000 | ||
| Share Application A/c Dr. To Share Capital A/c (Share application transferred to Share Capital A/c) |
200,000 | 200,000 | ||
| Share Allotment A/c Dr. To Share Capital A/c To Securities Premium A/c (Share allotment due on 8,000 shares of Rs 40 each including Premium of Rs 10 each) |
320,000 | 240,000 80,000 |
||
|
Bank A/c Dr. |
300,000 20,000 |
320,000 | ||
| Share First Call A/c Dr. To Share Capital A/c (Share first call due on 8,000 shares of Rs 20 each) |
150,000 10,000 |
160,000 | ||
| Share Final Call A/c Dr. To Share Capital A/c (Share final call due on 8,000 share of Rs. 25 each0 |
200,000 | 200,000 | ||
| Bank A/c Dr. Call- in - Arrears A/c Dr. To Share Final Call A/c (Share final call received on 7,500 shares of Rs 25 each) |
187,000 12,500 |
200,000 |
Working Notes:
Calls-in-Arrears on Share Allotment = 500 x 40 = Rs. 20,000 (including premium of Rs.10)
Calls-in-Arrears on First Call = 500 x 20 = Rs.10,000
Calls-in-Arrears on Final Call = 500 x 25 = Rs. 12,500
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Based on the below information, you are required to answer the following question:
|
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Pass entries for forfeiture and re-issue in the following case.
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Roxy Ltd. issued Equity shares of 10 each payable as:
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Following is an extract of the Journal of Roxy Ltd.
| Journal of Roxy Ltd. (an extract) | ||||
| Date | Particulars | L. F. | Dr. (₹) | Cr. (₹) |
| 1. | Share First Call A/c ...Dr. | 28,000 | ||
| To Share Capital A/c | 28,000 | |||
| (Being first call due on ___??___ shares @ ₹ 2 each) | ||||
| 2. | Bank A/c ...Dr. | ?? | ||
| Calls in arrears A/c ...Dr. | 2,000 | |||
| To Share First Call A/c | 28,000 | |||
| (Being first call received on ___??___ shares) | ||||
| 3. | Share Capital A/c ...Dr. | ?? | ||
| To Shares Forfeited A/c | 4,000 | |||
| To Calls in Arrears A/c | ?? | |||
| (Being ___??___ shares of ₹ 10 each forfeited for non-payment of first call) | ||||
| 4. | Share Second & Final Call A/c ...Dr. | 52,000 | ||
| To Share capital A/c | 52,000 | |||
| (Being second & final call due on ___??___ shares @ ₹ 4 each) | ||||
| 5. | Bank A/c ...Dr. | ?? | ||
| Calls in Arrears A/c ...Dr. | 10,000 | |||
| To Share Second & Final Call A/c | 52,000 | |||
| (Being second call received on ___??___ shares) | ||||
| 6. | Share capital A/c ...Dr. | ?? | ||
| To Shares Forfeited A/c | ?? | |||
| To Calls in Arrears A/c | 10,000 | |||
| (Being ___??___ shares of ₹ 10 each forfeited for non payment of final call) | ||||
| 7. | Bank A/c ...Dr. | ?? | ||
| Share Forfeited A/c ...Dr. | ?? | |||
| To Share Capital A/c | ?? | |||
| (Being 1,500 forfeited shares including those on which the first call was not received reissued @ ₹ 6 per shares fully called) | ||||
| 8. | Share Forfeiture A/c (1,000 × 0) + (500 × 2) ...Dr. | ?? | ||
| To Capital Reserve A/c | ?? | |||
| (Being ___??___) | ||||
You are required to complete the journal entries by filling up the missing information represented by '??', including the number of shares and narration, if any.
