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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Ankit Ltd. issued 20,000 equity shares of ₹10 each at a premium of ₹2 per share, payable: On Application ₹3; On Allotment ₹5 (including premium); On First Call ₹2; On Second and Final Call ₹2. Vijay was allotted 500 shares. Pass the necessary Journal entries relating to the forfeiture of shares in each of the following cases: Case I: Vijay did not pay the allotment money, and his shares were immediately forfeited. Case II: Vijay did not pay allotment and first call; his shares were forfeited after the first call. Case III: Vijay failed to pay the first call, and his shares were forfeited immediately. Case IV: Vijay failed to pay both calls, and his shares were forfeited.
JOURNAL (Books of Ankit Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Case I: Failed to pay Allotment (₹8 called-up: Application + Allotment) | ||||
| Share Capital A/c (500 × ₹6) Dr. | 3,000 | |||
| Securities Premium Reserve A/c (500 × ₹2) Dr. | 1,000 | |||
| To Share Forfeited A/c (500 × ₹3) | 1,500 | |||
| To Share Allotment A/c (500 × ₹5) | 2,500 | |||
| (500 shares forfeited for non-payment of allotment money; premium not received, so reversed) | ||||
| Case II: Failed to pay Allotment and First Call | ||||
| Share Capital A/c (500 × ₹8) Dr. | 4,000 | |||
| Securities Premium Reserve A/c (500 × ₹2) Dr. | 1,000 | |||
| To Share Forfeited A/c (500 × ₹3) | 1,500 | |||
| To Share Allotment A/c (500 × ₹5) | 2,500 | |||
| To Share First Call A/c (500 × ₹2) | 1,000 | |||
| (500 shares forfeited for non-payment of allotment and first call) | ||||
| Case III: Failed to pay First Call only (allotment, including premium, already paid) | ||||
| Share Capital A/c (500 × ₹8) Dr. | 4,000 | |||
| To Share Forfeited A/c (500 × ₹6) | 3,000 | |||
| To Share First Call A/c (500 × ₹2) | 1,000 | |||
| (500 shares forfeited for non-payment of the first call) | ||||
| Case IV: Failed to pay both First and Second Calls | ||||
| Share Capital A/c (500 × ₹10) Dr. | 5,000 | |||
| To Share Forfeited A/c (500 × ₹6) | 3,000 | |||
| To Share First Call A/c (500 × ₹2) | 1,000 | |||
| To Share Second and Final Call A/c (500 × ₹2) | 1,000 | |||
| (500 shares forfeited for non-payment of the first and second calls; allotment premium already received is unaffected) | ||||
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.56 - 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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