Show the forfeiture and reissue entries under each of the following cases:
(i) X Ltd. forfeited 300 shares of ₹ 10 each, ₹ 8 called-up held by Mr . A for non-payment of second call money of ₹ 3 per share. These shares were reissued to Mr. Z for ₹ 10 per share as fully paid-up.
(ii) Y Ltd. forfeited 400 shares of ₹ 10 each, fully called-up , held by Mr. B for non-payment of final call money of ₹ 4 per share . These shares were reissued to Mr. T at ₹ 12 per share as fully paid-up.
(iii) Z Ltd. forfeited 250 shares of ₹ 10 each, fully called-up held by Mr. C for non-payment of allotment @ ₹ 8 per share as fully paid-up to Mr.P.
(i) X Ltd. forfeited 300 shares of ₹ 10 each, ₹ 8 called-up held by Mr . A for non-payment of second call money of ₹ 3 per share. These shares were reissued to Mr. Z for ₹ 10 per share as fully paid-up.
(ii) Y Ltd. forfeited 400 shares of ₹ 10 each, fully called-up , held by Mr. B for non-payment of final call money of ₹ 4 per share . These shares were reissued to Mr. T at ₹ 12 per share as fully paid-up.
(iii) Z Ltd. forfeited 250 shares of ₹ 10 each, fully called-up held by Mr. C for non-payment of allotment @ ₹ 8 per share as fully paid-up to Mr.P.
(i)
Books of X Limited
Journal
Date
Particulars
L.F.
Debit
Amount
Rs
Credit
Amount
Rs
Share Capital
Dr.
2,400
To Share Forfeiture A/c
1,500
To Calls-in-Arrears A/c
900
(300 shares of Rs 10 each on which had called Rs 8, forfeited for non-payment of second call Rs 3 per share)
Bank A/c
Dr.
3,000
To Share Capital A/c
3,000
(300 shares of Rs 10 each re-issued)
Share Forfeiture A/c
Dr.
1,500
To Capital Reserve A/c
1,500
(Balance in Share Forfeiture Account after re-issue transferred to Capital Reserve)
Working Notes-
Share Forfeiture Credit (at the time of forfeiture of shares)
1,500
Less: Share Forfeiture Debit (at the time of re-issue shares)
NIL
Balance in Share Forfeiture after re-issue of shares
1,500
Capital Reserve = Balance in Share Forfeiture of re-issued shares
= Rs 1,500
(ii)
Books of Y Limited
Journal
Date
Particulars
L.F.
Debit
Amount
Rs
Credit
Amount
Rs
Share Capital A/c
Dr.
4,000
To Share Forfeiture A/c
2,400
To Calls-in-Arrears A/c
1,600
(400 shares of Rs 10 forfeited for the non-payment of final call Rs 4 per share)
Bank A/c
Dr.
4,800
To Share Capital A/c
4,000
To Securities Premium A/c
800
(400 shares of 10 each re-issued at Rs 12 per share as fully paid-up)
Share Forfeiture A/c
Dr.
2,400
To Capital Reserve A/c
2,400
(Balance of Share Forfeiture after re-issue transferred to Capital Reserve)
Working Notes-
Share Forfeiture Credit (at the time of forfeiture of shares)
2,400
Less: Share Forfeiture Debit (at the time of re-issue shares)
NIL
Balance in Share Forfeiture after re-issue of shares
2,400
Capital Reserve = Balance in Share Forfeiture of re-issued shares
= Rs 2,400
(iii)
Books of Z Limited
Journal
Date
Particulars
L.F.
Debit
Amount
Rs
Credit
Amount
Rs
Share Capital A/c
Dr.
2,500
To Share Forfeiture A/c (250×3)
750
To Calls-in-Arrears A/c
1,750
(250 shares of Rs 10 each forfeited for the non-payment Rs 7 per share)
Bank A/c
Dr.
2,000
Share Forfeiture A/c
Dr.
500
To Share Capital A/c
2,500
(250 shares of Rs 10 each re-issued for Rs 8 per share as fully paid-up )
Share Forfeiture A/c
Dr.
250
To Capital Reserve A/c
250
(Balance in Share Forfeiture Account after re-issue transferred to Capital Reserve)
Working Notes-
Share Forfeiture Credit (at the time of forfeiture of shares)
750
Less: Share Forfeiture Debit (at the time of re-issue shares)
500
Balance in Share Forfeiture after re-issue of shares
250
Capital Reserve = Balance in Share Forfeiture of re-issued shares = Rs 250
|
(i) |
Books of X Limited Journal |
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Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
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|
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Share Capital |
Dr. |
|
2,400 |
|
|
|
|
To Share Forfeiture A/c |
|
|
1,500 |
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|
To Calls-in-Arrears A/c |
|
|
900 |
||
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|
(300 shares of Rs 10 each on which had called Rs 8, forfeited for non-payment of second call Rs 3 per share) |
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||
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Bank A/c |
Dr. |
|
3,000 |
|
|
|
|
To Share Capital A/c |
|
|
3,000 |
||
|
|
(300 shares of Rs 10 each re-issued) |
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Share Forfeiture A/c |
Dr. |
|
1,500 |
|
|
|
|
To Capital Reserve A/c |
|
|
1,500 |
||
|
|
(Balance in Share Forfeiture Account after re-issue transferred to Capital Reserve) |
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||
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Working Notes-
|
Share Forfeiture Credit (at the time of forfeiture of shares) |
1,500 |
|
Less: Share Forfeiture Debit (at the time of re-issue shares) |
NIL |
|
Balance in Share Forfeiture after re-issue of shares |
1,500 |
Capital Reserve = Balance in Share Forfeiture of re-issued shares
= Rs 1,500
|
(ii) |
Books of Y Limited Journal |
||||
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
|
|
Share Capital A/c |
Dr. |
|
4,000 |
|
|
|
To Share Forfeiture A/c |
|
|
2,400 |
|
|
|
To Calls-in-Arrears A/c |
|
|
1,600 |
|
|
|
(400 shares of Rs 10 forfeited for the non-payment of final call Rs 4 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
4,800 |
|
|
|
To Share Capital A/c |
|
|
4,000 |
|
|
|
To Securities Premium A/c |
|
|
800 |
|
|
|
(400 shares of 10 each re-issued at Rs 12 per share as fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
2,400 |
|
|
|
To Capital Reserve A/c |
|
|
2,400 |
|
|
|
(Balance of Share Forfeiture after re-issue transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
Working Notes-
|
Share Forfeiture Credit (at the time of forfeiture of shares) |
2,400 |
|
Less: Share Forfeiture Debit (at the time of re-issue shares) |
NIL |
|
Balance in Share Forfeiture after re-issue of shares |
2,400 |
Capital Reserve = Balance in Share Forfeiture of re-issued shares
= Rs 2,400
|
(iii) |
Books of Z Limited 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. |
|
2,500 |
|
|
|
|
To Share Forfeiture A/c (250×3) |
|
|
750 |
||
|
|
To Calls-in-Arrears A/c |
|
|
1,750 |
||
|
|
(250 shares of Rs 10 each forfeited for the non-payment Rs 7 per share) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Bank A/c |
Dr. |
|
2,000 |
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
500 |
|
|
|
|
To Share Capital A/c |
|
|
2,500 |
||
|
|
(250 shares of Rs 10 each re-issued for Rs 8 per share as fully paid-up ) |
|
|
|
||
|
|
|
|
|
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||
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Share Forfeiture A/c |
Dr. |
|
250 |
|
|
|
|
To Capital Reserve A/c |
|
|
250 |
||
|
|
(Balance in Share Forfeiture Account after re-issue transferred to Capital Reserve) |
|
|
|
||
|
|
|
|
|
|
||
Working Notes-
|
Share Forfeiture Credit (at the time of forfeiture of shares) |
750 |
|
Less: Share Forfeiture Debit (at the time of re-issue shares) |
500 |
|
Balance in Share Forfeiture after re-issue of shares |
250 |
Capital Reserve = Balance in Share Forfeiture of re-issued shares = Rs 250
