Question

Journalise the following transactions 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 calls of Rs. 4 per share were not made. The forfeited shares were reissued at Rs. 15 per share fully paid-up.

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

Answer 1

Case (a)

Books of Bhushan Oil Ltd.
Date	Particulars					L.F.	Debit Amount (₹)	Credit Amount (₹)
	Share Capital A/c (200 $\times$ 80)				Dr.		16,000
	Securities Premium A/c (200 $\times$ 10)				Dr.		2,000
		To Share Allotment A/c (200 $\times$ 60)						12,000
		To Share Forfeiture A/c (200 $\times$ 30)						6,000
	(200 shares forfeited @ ₹100 each issued at a premium of ₹10 for the nonpayment of allotment money ₹60 per share)
	Bank A/c (200 $\times$ 70)				Dr.		14,000
	Share Forfeiture A/c (200 $\times$ 30)				Dr.		6,000
		To Share Capital A/c (200 $\times$ 100)						20,000
	(200 shares reissued @ ₹70 per share fully paid-up)

Case (b)

Date	Particulars				L.F.	Debit Amount (₹)	Credit Amount (₹)
	Share Capital A/c			Dr.		900
	Securities Premium A/c			Dr.		600
		To Share Allotment A/c					1,200
		To Share Forfeiture A/c					300
	(150 shares @ ₹10 each forfeited for nonpayment of allotment money Rs 8 per share including premium ₹4)
	Bank A/c			Dr.		2,250
		To Share Capital A/c					1,500
		To Securities Premium A/c					750
	(150 shares @ ₹10 each reissued For ₹15 per share fully paid-up)
	Share Forfeiture A/c			Dr.		300
		To Capital Reserve A/c					300
	(Balance of Share Forfeiture Account transferred to Capital Reserve Account)

Case (c)

Date	Particulars			L.F.	Debit Amount (₹)	Credit Amount (₹)
	Share Capital A/c		Dr.		20,000
		To Share Final Call A/c				4,000
		To Share Forfeiture A/c				16,000
	(400 shares @ ₹ 50 per share forfeited for nonpayment of Final Call Rs 10 per share)
	Bank A/c		Dr.		18,000
	Share forfeiture A/c		Dr.		2,000
		To Share Capital A/c				20,000
	(400 shares @ ₹50 each reissued for ₹45 fully paid-up)
	Share Forfeiture A/c		Dr.		14,000
		To Capital Reserve A/c				14,000
	(Balance in Share Forfeiture Account transferred to Capital Reserve Account)