Pass journal entries for the forfeiture and re-issue in the following cases : (i) A Ltd. forfeited 100 shares of Rs. 10 each fully called-up foe non-payment of first call of Rs. 3 per share and final call of Rs. 3 per share. All of these shares were re-issued as fully paid for Rs. 10 per share. (ii) B Ltd. forfeited 400 shares of Rs. 10 each fully called-up for non-payment of final call of Rs. 3 per share. 300 of these shares were re-issued as fully paid for Rs. 8 per share. (iii) C Ltd. forfeited 700 shares of Rs. 10 each fully called-up on which the holder has paid application money @ Rs. 3 and allotment money @ Rs. 2 per share. Out of these, 300 shares were re-issued as fully paid @ Rs. 7 per share. (iv) D Ltd. forfeited 1,000 shares of Rs. 10 each fully called-up on which the holder has paid only the application money @ Rs. 3 per share. Out of these, 600 shares were re-issued at Rs. 10.50 per share, fully paid up.

Pass journal entries for the forfeiture and re-issue in the following

1.	Pass journal entries for the forfeiture and re-issue in the following cases : (i) A Ltd. forfeited 100 shares of Rs. 10 each fully called-up foe non-payment of first call of Rs. 3 per share and final call of Rs. 3 per share. All of these shares were re-issued as fully paid for Rs. 10 per share. (ii) B Ltd. forfeited 400 shares of Rs. 10 each fully called-up for non-payment of final call of Rs. 3 per share. 300 of these shares were re-issued as fully paid for Rs. 8 per share. (iii) C Ltd. forfeited 700 shares of Rs. 10 each fully called-up on which the holder has paid application money @ Rs. 3 and allotment money @ Rs. 2 per share. Out of these, 300 shares were re-issued as fully paid @ Rs. 7 per share. (iv) D Ltd. forfeited 1,000 shares of Rs. 10 each fully called-up on which the holder has paid only the application money @ Rs. 3 per share. Out of these, 600 shares were re-issued at Rs. 10.50 per share, fully paid up.
Answer» Amount transferred to Capital Reserve : Case (i) Rs. 400, Case (ii) Rs. 1,500 Case (iii) Rs. 600, Case (iv) Rs. 1,800.

Discussion

No Comment Found

Related InterviewSolutions

A company issued 4,000 equity shares of Rs. 10 each at par payable as under : On application Rs. 3, on allotment Rs. 2, on first call Rs. 4 and on final call Rs. 1 per share. Applications were recived for 10,000 shares. Allotment was made pro-rata. How much amount will be recived in cash on allotment ?A. Rs. 8,000B. Rs. 12,000C. NilD. None
Alfa Ltd. issued 5,000 shares of Rs. 100 each at par. The amount payqable was as under : Rs. 25 on application, Rs. 25 on allotment, Rs. 20 on first call, and Rs. 30 on final call. The company did not make final call. X, a holder of 100 shares, failed to pay allotment and first call money. Directors forfeited his shares and immediately re-issued the forfeited shares at Rs. 6,500. Pass Journal entries in the books of the company and show the Share Capital in the Balance Sheet.
X Ltd. was registerd with an authorised capital of 2,00,000 shares of Rs. 10 each. It purchased assets of Y Ltd. for Rs. 3,00,000 and issued fully paid shares for purchase consideration. It also invited applications for 1,20,000 shares payable as under : Rs. 2.50 on application Rs. 2.50 on allotment Rs. 2 on first call and Rs. 3 on final call. Sarkar, who had been allotted 400 shares failed to pay the final call. His shares were forfited and re-issued at Rs. 8.50 per share as fully paid up. Pass entries in the Cash Book and Journal. Show the Share Capital in the Balance Sheet of the Company.
A Company invited applications for 5,000 shares of Rs. 100 each. The amount is payable as follows : `{:("On Application",,:,,"Rs. 20 per share"),("On Allotment",,:,,"Rs. 30 per share"),("On First Call",,:,,"Rs. 20 per share"),("On Second and Final Call",,:,,"Rs. 30 per share"):}` Applications werer recieved for 8,000 shares. Applications for 1,000 shares were rejected and pro-rata allotment was made to the remaining applicants. All calls were made and duly except : (i) Ganesh, the holder of 200 shares paid the two calls with allotment. (ii) Shiva, the holder of 300 shares failed to pay the first and second call money. Pass necessary journal entries to record the above transactions.
Govind Ltd., issued a prospectus inviting application, Rs. 5 on allotment (including premium), Rs. 2 on First call, and Rs. 2 on Final call. Applications were received for 27,000 shares. Directors allotted the shares as follows : `{:("To applicants of 16,000 shares",.................,"full allotment"),("To applicants of 6,000 shares",.................,"4,000 shares"),("To applicants of 5,000 shares",.................,"Nil"):}` Give entries in the Cash Book and Journal, assuming that all sums due on allotment and calls have been received.
Amrit Ltd., issued 50,000 shares of Rs. 10 each at a premium of Rs. 2 per share payable as Rs. 3 on application, Rs. 4 on allotment (including premium), Rs. 2 on first call and the remaining on second call. Applications were received for 75,000 shares and a pro-rata allotment was made to all the applicants. All moneys due were received except allotment and first call from Soun who applied for 1,200 shares. All his shares were forfeited. The forfeited shares were reissued for Rs. 9,600. Final call was not made. Pass the necessary journal entries.
X Ltd., invited applications for 50,000 Equity Shares of Rs. 10 each, payable Rs. 3.50 on application, Rs. 5 on allotment (including premium Rs. 2.50), and Rs. 4 on first and final call. The company received applications for 65,000 shares. It was decided : (a) to refuse allotment to the applicants for 5,000 shares, (b) to allot in full to the applicants for 20,000 shares, (c ) to allot balance of the available shares pro-rata among the other applicants, and (d) to utilise the excess application money in part payament of allotment money. All the money due was received except from one applicant to whom shares had been allotted on pro-rata basis. He failed to pay allotment and call money and his 300 shares were forfeited. These shares were re-issued at Rs. 9 as fully paid. Give journal entries to record the above transactions in the books of the company.
Jay Ltd. issued a prospectus inviting applications for 1,00,000 shares of Rs. 10 each. These shares were issued at par on the following terms : On application Rs. 2.50, on allotment Rs. 2.50, on first call Rs. 3 and on final call the balance. Applications were received for 1,35,000 shares. Allotments were made on the following basis : (i) To applicants for 25,000 shares - in full, (ii) To applicants for 60,000 shares - 45,000 shares To applicants for 50,000 shares - 30,000 shares All excess amount paid on applicantion is to be adjusted against amount due on allotment. The shares were fully called and paid-up except the amount of allotment, first and final call not paid by those who applied for 4,000 shares of the group applying for 50,000 shares. All the shares on which calls were not paid were forfeited by the Board of Directors. 1,800 forfeited shares were re-issued as fully paid on receipt of Rs. 9 per share. Prepare Cash Book and Journal entries to record the above.
A company issued 10,000 shares of Rs. 10 each at as premium of Rs. 1 per per share, payment to be made as follows : `{:(,"Rs."),("On Application",3),("On Allotment","4 (including premium)"),("On First call",2),("On Second and final call",2):}` Applications were received for 20,000 shares. Applications for 5,000 shares were rejected and allotment was made proportionately to the remaining applicants. The directors made both the calls and all the money were received , except the allotment, first call and final call on 400 shares, which were subsequently forfeited. Later, 300 of the forfeited sharesd were re-issued as fully paid @ Rs. 15 per share. Give journal entries to record the above.
New Industries Limited issued a prospects, inviting applications for 1,00,000 shares of Rs. 10 each at a premium of Rs. 5 per share, payable as follows : On Application Rs. 4.50 , On Allotment Rs. 7.50 (including Premium), On Ist Call Rs. 2.00 and On Final Call Rs. 1.00. Applications were recieved for 1,25,000 shares and allotment was made pro-rata to the applicants of 1,20,000 shares, the remaining applications being refused. Money received in excess on the application was adjusted towards the amount due on allotment. D, to whom 2,000 shares were allotted , fasiled to pay allotment money and on his failure to pay the first call, his shares were forfeited. M, the holder of 3,000 shares, failed to pay the to calls, and so his shares were also forfeited. All these shares were sold to R, credited as fully paid for Rs. 8 per share. Pass Cash Book and journal entries (with narrations) to record the above issue of shares by the company.

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment