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Question No 48 Chapter 1 - Unimax Class 12 Part 2 - 2021
(Reissued of forfeited shares which were originally issued at premium). Rama Ltd. forfeited 500 equity shares of ₹ 100 each issued at 10% premium (to be paid at the time of allotment) on which first call of ₹ 30 per equity share was not received, the second and final call of ₹ 20 per equity share was not yet called.
Give journal entries regarding forfeited and reissued of shares in each of the following alternative cases:
Case 1. If 200of these shares were reissued as ₹ 80 paid up ₹ 90 pre shares.
Case 2. If 200 of these shares were reissued as ₹ 80 called up for ₹ 80 per shares.
Case 3. If 200 of these shares were reissued as ₹ 80 paid up for ₹ 70 per shares.
Case 4. If 200 of these shares were reissued as ₹ 80 paid up for ₹ 30 per shares.
Case 5. If 200 of these shares were reissued as fully paid up for ₹ 50 per shares.
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| Entry on forfeited of 500 shares in all cases: | |||||
| Share capital A/c | Dr. | 40,000 | |||
| To Shares final call A/c (500*30) | 15,000 | ||||
| To forfeited shares A/c (500*50) | 25,000 | ||||
| (Being 500 shares forfeited for non-payment of first call money W. Note 1) | |||||
| Entries on reissued of 200 shares | |||||
| Case 1 | Bank A/c | Dr. | 18,000 | ||
| Forfeited shares A/c | Dr. | Nil | |||
| To Share capital A/c (200*80) | 16,000 | ||||
| To Securities premium reserve A/c(200*10) | 2,000 | ||||
| (Being 200 shares reissued as ₹ 80 paid up for ₹ 90 PR share) | |||||
| Forfeited shares A/c (25,000*200/500) | Dr. | 10,000 | |||
| To Capital reserve A/c | 10,000 | ||||
| (Being the transfer of gain on reissued of 200 shares) | |||||
| Case 2 | Bank A/c (200*80) | Dr. | 16,000 | ||
| Forfeited shares A/c | Dr. | Nil | |||
| To Share capital A/c (200*80) | 16,000 | ||||
| (Being 200 shares reissued as ₹ 80 paid up for ₹ 80 PR share) | |||||
| Forfeited shares A/c | Dr. | 10,000 | |||
| To Capital reserve A/c | 10,000 | ||||
| (Being the transfer of gain on reissued of 200 shares) | |||||
| Case 3 | Bank A/c (200*70) | 14,000 | |||
| Forfeited shares A/c (200*10) | 2,000 | ||||
| To Share capital A/c (200*80) | |||||
| (Being 200 shares reissued as ₹ 80 paid up for ₹ 70 per share) | |||||
| Forfeited shares A/c | Dr. | 8,000 | |||
| To Capital reserve A/c | 8,000 | ||||
| (Being the transfer of gain on reissued) | |||||
| Case 4 | Bank A/c (200*70) | Dr. | 6,000 | ||
| Forfeited shares A/c (200*50) | Dr. | 10,000 | |||
| To Share capital A/c (200*80) | 16,000 | ||||
| (Being 200 shares reissued as ₹ 80 paid up for ₹ 30 per share) | |||||
| Forfeited shares A/c | Dr. | Nil | |||
| To Capital reserve A/c | Nil | ||||
| Case 5 | Bank A/c (200*50) | Dr. | 10,000 | ||
| Forfeited shares A/c (200*50) | Dr. | 10,000 | |||
| To Share capital A/c (200*100) | 20,000 | ||||
| (Being 200 shares reissued as fully paid up for ₹ 50 per share) | |||||
| Forfeited shares A/c | Dr. | Nil | |||
| To Capital reserve A/c | Nil | ||||
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Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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