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Question
VT Ltd forfeited 200 shares of ₹ 10 each , issued at a premium of ₹ 5 per share , held by Mohan for non-payment of the final call of ₹ 3 per share . 100 out of these shares were reissued to Narendra at a discount of ₹ 4 per share . Journalise.
Solution
Books of VT Limited
Journal
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
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Share Capital A/c (200 × Rs 10) |
Dr. |
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2,000 |
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To Share Forfeiture A/c (200 × Rs 7) |
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1,400 |
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To Calls-in-Arrears A/c |
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600 |
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(200 shares of Rs 10 each forfeited for non-payment of Rs 3 each) |
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||
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Bank A/c |
Dr. |
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600 |
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Share Forfeiture A/c (100 × Rs 4) |
Dr. |
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400 |
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To Share Capital A/c |
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1,000 |
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(100 shares of Rs 10 each re-issued at Rs 6 per share fully paid-up) |
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Share Forfeiture A/c |
Dr. |
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300 |
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To Capital Reserve A/c |
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300 |
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(Balance in share forfeiture of 100 shares transferred to capital reserve) |
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Working Notes:
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Share Forfeiture of re-issued shares |
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Share Forfeiture Cr. |
Rs 7 |
per share |
|
Share Forfeiture Dr. |
Rs 4 |
per share |
|
Balance in Share Forfeiture after re-issue |
Rs 3 |
per share |
|
Capital Reserve |
= Balance in Share Forfeiture after re-issue (per share) × No. of shares re-issued |
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= Re 3 × 100 |
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= Rs 300 |
APPEARS IN
RELATED QUESTIONS
What is the maximum amount of discount at which forfeited share can be re-issued?
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Pass necessary Journal Entries for the above transactions in the books of the company.
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On application - Rs 2 per share
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Answer in one Sentence only :
Give the full form of SEBI.
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Pass necessary journal entries in the books of the company for the following transactions:
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| On application | ---- | ₹ 2 per share, |
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---- |
₹ 5 per share(including premium), |
| On first and final call |
---
|
Balance. |
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Pass necessary journal entries for the above transactions in the books of Jeevan Dhara Ltd.
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| On application | --- | ₹ 6 (including ₹ 1 premium) |
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| Equity Share Capital A/c | Dr. | ₹X | |
| To share Forfeited A/c | ₹Y | ||
| To Equity Share Allotment A/c | ₹Z |
Here X, Y and Z are:
Shares can be forfeited for?
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When shares are forfeited, the Share Capital Account is debited with the:
If a share of ₹ 10 on which ₹ 8 has been paid up is forfeited, it can be reissued at the minimum price of ______.
Which of the following statement is false?
At the time of forfeiture, the share Capital Account is debited with ______
Pass entries for forfeiture and re-issue in the following case.
Vikram Ltd. forfeited 5,000 shares of Rahul, who had applied for 6,000 shares for non-payment of allotment money of ₹ 5 per share and first and final call of ₹ 2 per share. Only application money of ₹ 3 was paid by him. Out of these 3,000 shares were re-issued @ ₹ 12 per share as fully paid.
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.
200 equity shares of ₹10 each issued at par were forfeited for non-payment of first call of ₹3 per share. Final call of ₹2 per share was not yet called. By which amount the share capital will be debited on forfeiture?
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?
Tulip Ltd. allotted 45,000 Equity shares of ₹ 10 each to the public. The first and final call of ₹ 2 per share was not received on 1,000 shares, which were forfeited by the company. Later, 600 of the forfeited shares were reissued at ₹ 7 fully paid-up. What is the Subscribed Capital of the company?
