Give necessary journal entries:
(i) The Directors of Devendra Ltd. resolved on 1st January, 2010 that Equity Shares of ₹ 10 each, ₹ 8 paid-up be forfeited for non-payment of final call of ₹ 2. On 1st February, 60 of these shares were reissued @ ₹ 7 per share as fully paid-up.
(ii) Virender Limited forfeited 20 shares of ₹ 100 each(₹ 60 called-up) issued at par to Mukesh on which he had paid ₹ 20 per share . Out of these , 15 shares were reissued to Sanjeev as ₹ 60 paid-up for ₹ 45 per share.
(i) The Directors of Devendra Ltd. resolved on 1st January, 2010 that Equity Shares of ₹ 10 each, ₹ 8 paid-up be forfeited for non-payment of final call of ₹ 2. On 1st February, 60 of these shares were reissued @ ₹ 7 per share as fully paid-up.
(ii) Virender Limited forfeited 20 shares of ₹ 100 each(₹ 60 called-up) issued at par to Mukesh on which he had paid ₹ 20 per share . Out of these , 15 shares were reissued to Sanjeev as ₹ 60 paid-up for ₹ 45 per share.
(i)
Book of Devendra Limited
Journal
Date
Particulars
L.F.
Debit
Amount
Rs
Credit
Amount
Rs
2010
Jan. 01
Equity Share Capital A/c
Dr.
1,000
To Share Forfeiture A/c
800
To Calls-in-Arrears A/c
200
(100 shares of Rs 10 each forfeited for the non-payment of Rs 2 per share)
Feb. 01
Bank A/c
Dr.
420
Share Forfeiture A/c
Dr.
180
To Equity Share Capital A/c
600
(60 shares of Rs 10 each re-issued at Rs 7 per share, fully paid-up)
Share Forfeiture A/c
Dr.
300
To Capital Reserve A/c
300
(Balance in Share Forfeiture Account of 60 shares after re-issue transferred to Capital Reserve)
Working Note:
Forfeiture of re-issued shares
Share Forfeiture Credit
Rs
8
per share
Share Forfeiture Debit
Rs
3
per share
Balance in Share Forfeiture after re-issue
5
per share
General Reserve = Balance in Share Forfeiture after re-issue (per share) × No. of shares reissued
= Rs 5 × 60
= Rs 300
(ii)
Book of Virender Limited
Journal
Date
Particulars
L.F.
Debit
Amount
Rs
Credit
Amount
Rs
Share Capital A/c
Dr.
1,200
To Share Forfeiture A/c
400
To Calls-in-Arrears A/c
800
(20 shares of Rs 100 each Rs 60 called-up forfeited for the non-payment of Rs 40 per share)
Bank A/c
Dr.
675
Share Forfeiture A/c
Dr.
225
To Share Capital A/c
900
(15 shares of Rs 100 each re-issued for Rs 45 per share as Rs 60 paid-up)
Share Forfeiture A/c
Dr.
75
To Capital Reserve A/c
75
(Balance in Share Forfeiture of 15 re-issued shares transferred to Capital Reserve)
Working Note:
Forfeiture of reissued shares
Share Forfeiture Credit (at the time of forfeiture )
Rs
20
per share
Share Forfeiture Debit (at the time of re-issue)
Rs
15
per share
Balance in Share Forfeiture after re-issue
Rs
5
per share
Capital Reserve = Balance in Share Forfeiture after re-issue (per share) × No. of shares reissued
= Rs 5 × 15 Shares
= Rs 75
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(i) |
Book of Devendra Limited |
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Journal |
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Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
2010 |
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Jan. 01 |
Equity Share Capital A/c |
Dr. |
|
1,000 |
|
|
|
|
To Share Forfeiture A/c |
|
|
800 |
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|
To Calls-in-Arrears A/c |
|
|
200 |
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(100 shares of Rs 10 each forfeited for the non-payment of Rs 2 per share) |
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Feb. 01 |
Bank A/c |
Dr. |
|
420 |
|
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|
Share Forfeiture A/c |
Dr. |
|
180 |
|
|
|
|
To Equity Share Capital A/c |
|
|
600 |
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|
(60 shares of Rs 10 each re-issued at Rs 7 per share, fully paid-up) |
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Share Forfeiture A/c |
Dr. |
|
300 |
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|
|
|
To Capital Reserve A/c |
|
|
300 |
||
|
|
(Balance in Share Forfeiture Account of 60 shares after re-issue transferred to Capital Reserve) |
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Working Note:
Forfeiture of re-issued shares
|
Share Forfeiture Credit |
Rs |
8 |
per share |
|
Share Forfeiture Debit |
Rs |
3 |
per share |
|
Balance in Share Forfeiture after re-issue |
|
5 |
per share |
General Reserve = Balance in Share Forfeiture after re-issue (per share) × No. of shares reissued
= Rs 5 × 60
= Rs 300
|
(ii) |
Book of Virender Limited |
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Journal |
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Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
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|
|
|
|
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||
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|
Share Capital A/c |
Dr. |
|
1,200 |
|
|
|
|
To Share Forfeiture A/c |
|
|
400 |
||
|
|
To Calls-in-Arrears A/c |
|
|
800 |
||
|
|
(20 shares of Rs 100 each Rs 60 called-up forfeited for the non-payment of Rs 40 per share) |
|
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||
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|
|
|
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||
|
|
Bank A/c |
Dr. |
|
675 |
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
225 |
|
|
|
|
To Share Capital A/c |
|
|
900 |
||
|
|
(15 shares of Rs 100 each re-issued for Rs 45 per share as Rs 60 paid-up) |
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||
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|
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||
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|
Share Forfeiture A/c |
Dr. |
|
75 |
|
|
|
|
To Capital Reserve A/c |
|
|
75 |
||
|
|
(Balance in Share Forfeiture of 15 re-issued shares transferred to Capital Reserve) |
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||
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|
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Working Note:
|
Forfeiture of reissued shares |
|||
|
Share Forfeiture Credit (at the time of forfeiture ) |
Rs |
20 |
per share |
|
Share Forfeiture Debit (at the time of re-issue) |
Rs |
15 |
per share |
|
Balance in Share Forfeiture after re-issue |
Rs |
5 |
per share |
Capital Reserve = Balance in Share Forfeiture after re-issue (per share) × No. of shares reissued
= Rs 5 × 15 Shares
= Rs 75
