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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Alpha Ltd. issued 20,000 Equity Shares of ₹10 each at par, payable: On Application ₹2; On Allotment ₹3; On First Call ₹3; On Second and Final Call ₹2. Mr. Gupta was allotted 100 shares. Pass the Journal entry for the forfeiture of shares in each of the following alternative cases: Case I: Gupta failed to pay the allotment money, and his shares were immediately forfeited. Case II: Gupta failed to pay the allotment money and, subsequently, the first call, and his shares were then forfeited. Case III: Gupta failed to pay the first call and, subsequently, the second and final call, and his shares were then forfeited.
JOURNAL (Books of Alpha Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Case I: Forfeited after failing to pay Allotment (₹5 called-up: Application + Allotment) | ||||
| Share Capital A/c (100 × ₹5) Dr. | 500 | |||
| To Share Forfeited A/c | 200 | |||
| To Share Allotment A/c | 300 | |||
| (100 shares, ₹5 called-up, forfeited for non-payment of allotment) | ||||
| Case II: Forfeited after failing to pay Allotment and First Call (₹8 called-up) | ||||
| Share Capital A/c (100 × ₹8) Dr. | 800 | |||
| To Share Forfeited A/c | 200 | |||
| To Share Allotment A/c | 300 | |||
| To Share First Call A/c | 300 | |||
| (100 shares, ₹8 called-up, forfeited for non-payment of allotment and first call) | ||||
| Case III: Forfeited after failing to pay First and Final Call (allotment already paid; ₹10 fully called-up) | ||||
| Share Capital A/c (100 × ₹10) Dr. | 1,000 | |||
| To Share Forfeited A/c | 500 | |||
| To Share First Call A/c | 300 | |||
| To Share Second and Final Call A/c | 200 | |||
| (100 shares, fully called-up, forfeited for non-payment of the first and final calls; Application and Allotment money of ₹500 already paid is retained) | ||||
Accounting & Commerce Educator
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.
This guide covers "T.S. Grewal Class 12 Vol 2 Chapter 1 Q.52 - Share Capital", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Share Capital.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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