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Question
Star Ltd. forfeited 500 Equity Shares of ₹ 100 each for non-payment of first call of ₹ 30 per share . The final call of ₹ 10 per share was not yet made. Out of these, 60% shares were reissued for ₹ 39,000 fully paid. journalise the forfeiture and reissue of shares.
Solution
Journal
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Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
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Equity Share Capital A/c (500×90) |
Dr. |
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45,000 |
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To Equity Share 1st Call A/c (500×30) |
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15,000 |
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To Share Forfeited A/c (500×60) |
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|
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30,000 |
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( 500 equity shares forfeited for non-payment of final call) |
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Bank A/c (300×130) |
Dr. |
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39,000 |
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To Equity Share Capital A/c (300×100) |
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30,000 |
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To Security Premium Reserve A/c (300×30) |
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9,000 |
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(300 shares are reissued @130 per share) |
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Share Forfeited A/c |
Dr. |
|
18,000 |
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To Capital Reserve A/c |
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18,000 |
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( Profit on reissue of 300 shares transferred to Capital Reserve) |
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Working Note:
Amount transferred to Capital Reserve
Shares Re-issued = 300
Shares Forfeited = 500
Amount forfeited in respect of 300 shares
= `"Amount Forfeited" xx "Shares Re-issued"/"Shares Forfeited"`
=`30000 xx 300/500 = 18000`
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|
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NH Ltd, with an authorized capital of ₹ 10,00,000 divided into 1,00,000 Equity shares of ₹10 each, issued 50,000 shares to the public at a premium of ₹ 2 per share, payable as follows:
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Which one of the following is correct?
