Concept Of The Forfeiture & Reissue Of Shares Which Were Originally Issued At Per|Practice Questions|OMR

BODMAS Rule|Question Practice|Question Practice|OMR

Cemto Ltd. Forfeited 6,000 shares of Rs. 10 each issued at a premium of Rs. 2 per share for the non-payment of final call of Rs. 3 per share. 300 of the forfeited shares were reissued for Rs. 8 per share as fully paid up. Pass necessary journal entries for the forfeiture and re-issue of shares. Also prepare share forfeited account.

(Forfeiture of Shares which were Issued at Premium-Premium not received). Sargam Ltd. invited applications for issuing 80,000 equity shares of Rs. 100 each at a premium. The amount was payable as follows : On Application- Rs. 20 per share, On Allotment-Rs. 60 (including premium ) per share, On First and Final Call-Rs. 40 per share. Applications for 1,20,000 shares were received. Allotment was made on pro rata basis to all the applicants. Excess money received on applications was adjusted on sums due on allotment. Sitaram, who had applied for 6,000 shares, failed to pay the allotment money and Harnam did not pay first and final call on 800 shares allotted to him. The shares of Sitaram and Harnam were forfeited. 4,200 of these shares were reissued for Rs. 100 per share as fully paid-up. The reissued shares included all the forfeited shares of Harnam. Pass necessary Journal entries for the above transactions in the books of Sargam Ltd.

a. X Ltd. forfeited 10 shares of ₹ 10 each, ₹ 7 called up on which the shareholder had paid application and allotment money of ₹ 5 per share. Out of these, 8 shares were re-issued to Y for ₹8 per share at ₹ 8 per paid up per share. Record the journal entries for forfeiture and reissue of shares by opening call in arrear, call in advance account. b. L ltd forfeited Mr M’s shares who has applied for 600 shares and was allotted 400 shares failed to pay allotment money of ₹ 4 per share including premium of ₹ 2 on which he had paid application money of ₹ 2 only. Pass necessary journal entries for forfeiture of shares by opening call in arrear, call in advance account. c. Crown Ltd forfeited 50 shares of ₹ 10 each, for non- payment of final call money of ₹ 3 per share. Out of these 20 shares were reissued to Taj at₹ 8 per share. Record the journal entries for forfeiture and reissue of shares assuming that the company maintains call in arrear, call in advance account.

Pass necessary Journal entries in the books of the company for the following transactions: Vishesh Ltd. Forfeited 1,000 Equity Shares of Rs. 10 each issued at a premium of Rs. 2 per share for non-payment of allotment money of Rs. 5 per share including premium. The final call of Rs. 2 per share was not yet called on these shares. Of the forfeited shares 800 shares were reissued at Rs. 12 per share as fully paid-up. The remaining shares were reissued at Rs. 11 per share fully paid-up.