Concept - Forfeiture & Reissue Of Shares Which Were Originally Issued At Premium|Practice Questions|OMR

Issue Of Shares In A Premium

(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.

(Forfeiture of Shares which were issued at Premium and reissued at Discount). X Ltd. issued 10,000 Equity Shares of Rs 100 each at a premium of Rs. 20 per share payable as Rs. 30 on application, Rs. 50 on allotment including premium and Rs. 40 on first and final call. All the shares were subscribed, amount due on all shares was received except from Asha, holding 100 shares were subscribed, amount due on all shares was received except from Asha, holding 100 shares who did not pay allotment and call money and Neeru holding 200 shares did not pay the first and final call money. These 300 shares were forfeited. Out of the shares forfeited, 150 shares (including all shares of Asha) were reissued to Raja @ Rs. 80 per share as fully paid-up. Pass Journal entries in the books of the company to record the forfeiture and reissue only. Also, show Shareholders' Funds in the Balance Sheet before and after forfeiture and reissue.

(Reissue of Forfeited Shares which were issued at Premium). Complete Solutions Ltd. forfeited Shares of Rs. 100 each issued at 10% premium on which allotment money of Rs. 30 per equity share (including premium) and first call of Rs. 30 per share were not received, the second and final call of Rs. 20 per equity share was not yet called. Pass journal entries regarding forfeiture and reissue of shares in each of the following cases: Case 1. If 200 of these shares were reissued as Rs. 80 paid-up for Rs. 90 per share. Case 2. If 200 of these shares were reissued as Rs. 80 paid-up for Rs. 80 per share. Case 3. If 200 of these shares were reissued as Rs. 80 paid-up for Rs. 70 per share. Case 4. If 200 of these shares were reissued as Rs. 80 paid-up for Rs. 50 per share. Case 5. If 200 of these shares were reissued at Rs. 70 per share as fully paid-up.