Z Ltd. issued 20,000 Equity Shares of ₹ 10 each at par payable: On application ₹ 2 per share; on allotment ₹ 3 per share; on first call ₹ 3 per share; on second and final call ₹ 2 per share .
Mr Gupta was allotted 100 shares . Pass necessary journal entry relating to the forfeiture of shares in each of the following alternative cases:
Case I If Mr Gupta failed to pay the allotment money and his shares were forfeited.
Case II If Mr Gupta failed to pay allotment money and on his subsequent failure to pay the first call , his shares were forfeited.
Case III If Mr Gupta failed to pay the first call and on his subsequent failure to pay the second and final call, his shares were forfeited.

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Solution

Application

Rs

2

Allotment

Rs

3

First Call

Rs

3

Final Call

Rs

2

10

Journal

Date

Particulars

L.F.

Debit Amount

Rs

Credit

Amount

Rs

Case I

Share Capital A/c (100×5)

Dr.

500

To Share Forfeiture A/c

200

To Share Allotment A/c

300

(100 shares of Rs 10 each, Rs 5 called-up, forfeited for the non-payment of allotment)

Case II

Share Capital A/c (100 × 8)

Dr.

800

To Share Forfeiture A/c

200

To Share Allotment A/c

300

To Share First Call A/c 300

(100 shares of Rs 10 each, Rs 8 called-up forfeited for non-payment allotment and first-call)

Case III

Share Capital A/c

Dr.

1,000

To Share Forfeiture A/c

500

To Share First Call A/c

300

To Share Final Call A/c 200

(100 shares of Rs 10 each forfeited for the non-payment Rs 5 each)

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Similar questions

Case I	If Mr. Gupta failed to pay the allotment money and his shares were immediately forfeited.
Case II	If Mr. Gupta failed to pay allotment money and on his subsequent failure to pay the first call, his shares were forfeited.
Case III	If Mr. Gupta failed to pay the first call and on his subsequent failure to pay the second and final call, his shares were forfeited.

Vijay was allotted 500 shares. Pass the necessary Journal entries relating to the forfeiture of shares in following cases.

Case I	Vijay did not pay allotment money and his shares were immediately forfeited.
Case II	Vijay did not pay allotment and first call, his shares were forfeited after first call.
Case III	Vijay failed to pay first call and his shares were forfeited immediately.
Case IV	Vijay failed to pay both the calls and his shares were forfeited.

With application	$—$	₹2,
On allotment (including premium)	$—$	₹5,
On first call	$—$	₹3,
On second call	$—$	₹3.

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Journal
Date	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs

Case I	Share Capital A/c (100×5)	Dr.			500
	To Share Forfeiture A/c					200
	To Share Allotment A/c					300
	(100 shares of Rs 10 each, Rs 5 called-up, forfeited for the non-payment of allotment)

Case II	Share Capital A/c (100 × 8)		Dr.		800
	To Share Forfeiture A/c					200
	To Share Allotment A/c					300
	To Share First Call A/c					300
	(100 shares of Rs 10 each, Rs 8 called-up forfeited for non-payment allotment and first-call)

Case III	Share Capital A/c	Dr.			1,000
	To Share Forfeiture A/c					500
	To Share First Call A/c					300
	To Share Final Call A/c					200
	(100 shares of Rs 10 each forfeited for the non-payment Rs 5 each)