Garima Ltd. forfeited 1,600 equity shares of Rs. 10 each for the non-payment of first and final call of Rs. 2 per share. The forfeited shares were reissued at Rs. 12 per share as fully paid-up.

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Solution

Amount to be transferred to share forfeiture A/c= 16,000(1,600 x 10) – 3,200(1,600 x 2)= Rs. 12,800
Amount to be transferred to Capital Reserve A/c= Rs.12,800

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Q. Journalise the following transaction 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 call of Rs. 4 per share were not made. The forfeited share were reissued at Rs. 15 per share fully paid-up.
(c) 400 share of Rs. 50 each issued at par were forfeited for non-payment of final call of Rs. 10 per share. These share were reissued at Rs. 45 per share fully paid-up.

Journalise the following transaction in the books Bhushan Oil Ltd:

(a) 200 shares of Rs 100 each issued at a discount of Rs 10 were forfeited for the non payment of allotment money of Rs 50 per share. The first and final call of Rs 20 per share on these share were not made. The forfeited share 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 call of Rs 4 per share were not made. The forfeited share were reissued at Rs 15 per share fully paid-up.

(c) 400 share of Rs 50 each issued at par were forfeited for non-payment of final call of Rs 10 per share. These share were reissued at Rs 45 per share fully paid-up.

Q. T Ltd. forfeited 500 equity shares of Rs. 10 fully called-up, held by Mr. Ram for non-payment of first call of Rs. 5 and final of Rs. 3 each. However, he paid application money @ Rs. 2 per share. These shares were reissued at Rs. 10 each. On reissue, amount to be transferred to Capital Reserve Account will be _____.

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. R Ltd. forfeited 300 equity shares of Rs. 10 fully called-up, held by Mr. X for non-payment of first call of Rs. 2 and final of Rs. 3 each. However, he paid application money @ Rs. 2 per share and allotment money @ Rs. 3 per share. These shares were reissued at Rs. 12 each. Amount to be transferred to Capital Reserve Account is Rs. _____.

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Garima Ltd. forfeited 1,600 equity shares of Rs. 10 each for the non-payment of first and final call of Rs. 2 per share. The forfeited shares were reissued at Rs. 12 per share as fully paid-up.

Amount to be transferred to share forfeiture A/c= 16,000(1,600 x 10) – 3,200(1,600 x 2)= Rs. 12,800 Amount to be transferred to Capital Reserve A/c= Rs.12,800

Amount to be transferred to share forfeiture A/c= 16,000(1,600 x 10) – 3,200(1,600 x 2)= Rs. 12,800
Amount to be transferred to Capital Reserve A/c= Rs.12,800