ABC Ltd forfeited $20$ shares of rs $10$ each, Rs. $8$ called up, on which X paid application and allotment money of Rs. $2$ and Rs. $3$ respectively. These shares were re issued to Y at $6$ fully paid. What was the balance in share forfeiture account before shares were re-issued?

Rs.

40

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Rs.

60

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Rs.

100

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Rs.

160

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Solution

The correct option is C Rs. $100$
Shares forfeiture account contains the balance of money paid on the shares forfeited.
Number of shares = 20
Money paid on shares = 2+3 = 5
Money unpaid on shares = (8-5) = 3
Balance in shares forfeiture account before shares were re-issued = 20*5 = 100

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Pass journal entries for the Forfeiture and Re-issue in the following cases:

(a) X Ltd. forfeited 200 shares of Ravi of Rs 10 each Rs 8 called up, on which he had paid application and allotment money of Rs 3 per share. Out of these, 100 shares were re-issued as fully paid up for Rs 8 per share.

(b) Y Ltd. forfeited 300 shares of Rs 10 each, Rs 7 called up, for non-payment of First Call of Rs 2 per share. Out of these, 100 shares were immediately re-issued at Rs 6 per share.

(c) Z Ltd. forfeited 600 shares of Rs 10 each, on which first call of Rs 3 per share was not received; the second and final call of Rs 2 per share has not yet been called. Out of these, 200 shares were re-issued as Rs 8 paid-up for Rs 7 per share.

Pass journal entries for the forfeiture and re-issue in the following cases:

(i) A Ltd. forfeited 400 shares of Anil of Rs 10 each fully called up for non-payment of final call of Rs 2 per share and re-issued to Sunil as fully paid for Rs 10 per share.

(ii) B Ltd. forfeited 500 shares of Rs 10 each fully called up for non-payment of first call of Rs 2 per share and final call of Rs 2 per share. All of these shares were re-issued as fully paid for Rs 8 per share.

(iii) C Ltd.forfeited 600 shares of Rs 10 each fully called up for non-payment of allotment money of Rs 3 per share,first call of Rs 2 share and final call Rs 2 per share. 400 of these shares were re-issued as fully paid up at the maximum rate of discount allowed by law.

(iv) D Ltd. forfeited 800 shares of Rs 10 each fully called up, on which the holder had paid only the application money of Rs 3 per share. Out of these, 500 shares were re-issued at Rs 11 per share, fully paid up.

Q. Eee Ltd. forfeited 200 shares of Rs 10 each (Rs 8 called up) on which the holder had paid application and allotment money of Rs 5 per share. Out of these 50 shares were re-issued to F as fully paid for Rs 8 per share. The Profit on re-issue is ___________.

Q. X Ltd, forfeited 20 shares of Rs 10 each, Rs 7 called up on which Mahesh had paid application and allotment money of Rs 5 per share. Of these 15 shares were re-issued to Naresh as Rs 7 paid-up for Rs 8 per share. The Profit on re-issue is ________.

Bhagwati Ltd. invited applications for issuing 2,00,000 equity shares of Rs 10 each. The amount were payable as follows :

On Application --Rs 3 per share.

On allotment --Rs 5 per share.

On first and final call -- Rs 2 per share.

Application were received for 3,00,000 shares and pro-rata allotment was made to all the applicants. Money overpaid on application was adjusted towards allotment money. B, who was allotted 3,000 shares, 2,500 shares were reissued as fully paid up @ Rs 8 per share.

Pass necessary journal entries to record the above transactions in the books of Bhagwati Ltd.

(a) A company forfeited 200, shares of Rs 20 each, Rs 15 per share called up on which Rs 10 per share had been paid Directors reissued all the forfeited shares to B as Rs 15 per share paid up, for a payment of Rs 10 each . Give journal entries in the books of the company for forfeiture and re-issue of shares.

(b) A Ltd. forfeited 100 equity shares of the face value of Rs 10 each, for the non-payment of first call of Rs 2 per share. Rs 6 per share had already been called and paid. These shares were subsequently re-issued as fully paid at the rate of Rs 7 per share. Give journal entries in the books of the company for forfeiture and re-issue of shares.

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ABC Ltd forfeited 20 shares of rs 10 each, Rs. 8 called up, on which X paid application and allotment money of Rs. 2 and Rs. 3 respectively. These shares were re issued to Y at 6 fully paid. What was the balance in share forfeiture account before shares were re-issued?

The correct option is C Rs. 100Shares forfeiture account contains the balance of money paid on the shares forfeited.Number of shares = 20Money paid on shares = 2+3 = 5Money unpaid on shares = (8-5) = 3Balance in shares forfeiture account before shares were re-issued = 20*5 = 100

ABC Ltd forfeited $20$ shares of rs $10$ each, Rs. $8$ called up, on which X paid application and allotment money of Rs. $2$ and Rs. $3$ respectively. These shares were re issued to Y at $6$ fully paid. What was the balance in share forfeiture account before shares were re-issued?

The correct option is C Rs. $100$
Shares forfeiture account contains the balance of money paid on the shares forfeited.
Number of shares = 20
Money paid on shares = 2+3 = 5
Money unpaid on shares = (8-5) = 3
Balance in shares forfeiture account before shares were re-issued = 20*5 = 100