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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Show the forfeiture and reissue entries under each of the following cases:
(i) KBC Ltd. forfeited 300 shares of ₹10 each, ₹8 called-up, held by Mr. A, for non-payment of the second call money of ₹3 per share. These shares were reissued to Mr. Z for ₹10 per share, fully paid-up.
(ii) KK Ltd. forfeited 400 shares of ₹10 each, fully called-up, held by Mr. B, for non-payment of the final call money of ₹4 per share. These shares were reissued to Mr. T at ₹12 per share, fully paid-up.
(iii) Light Ltd. forfeited 250 shares of ₹10 each, fully called-up, held by Mr. C, for non-payment of allotment money of ₹3 per share and first and final call money of ₹4 per share. These shares were reissued at ₹8 per share, fully paid-up, to Mr. P.
(i) Books of KBC Ltd.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Share Capital A/c (300 × ₹8) Dr. | 2,400 | |||
| To Share Forfeiture A/c (300 × ₹5) | 1,500 | |||
| To Calls-in-Arrears A/c (300 × ₹3) | 900 | |||
| (300 shares, ₹8 called-up, forfeited for non-payment of the ₹3 second call) | ||||
| Bank A/c (300 × ₹10) Dr. | 3,000 | |||
| To Share Capital A/c | 3,000 | |||
| (300 shares reissued to Z at ₹10 per share, fully paid-up) | ||||
| Share Forfeiture A/c Dr. | 1,500 | |||
| To Capital Reserve A/c | 1,500 | |||
| (Balance in Share Forfeiture Account transferred to Capital Reserve) |
(ii) Books of KK Ltd.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Share Capital A/c (400 × ₹10) Dr. | 4,000 | |||
| To Share Forfeiture A/c (400 × ₹6) | 2,400 | |||
| To Calls-in-Arrears A/c (400 × ₹4) | 1,600 | |||
| (400 shares, fully called-up, forfeited for non-payment of the ₹4 final call) | ||||
| Bank A/c (400 × ₹12) Dr. | 4,800 | |||
| To Share Capital A/c (400 × ₹10) | 4,000 | |||
| To Securities Premium Reserve A/c (400 × ₹2) | 800 | |||
| (400 shares reissued to T at ₹12 per share, fully paid-up) | ||||
| Share Forfeiture A/c Dr. | 2,400 | |||
| To Capital Reserve A/c | 2,400 | |||
| (Balance in Share Forfeiture Account transferred to Capital Reserve) |
(iii) Books of Light Ltd.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Share Capital A/c (250 × ₹10) Dr. | 2,500 | |||
| To Share Forfeiture A/c (250 × ₹3) | 750 | |||
| To Calls-in-Arrears A/c (250 × ₹7) | 1,750 | |||
| (250 shares, fully called-up, forfeited for non-payment of ₹7 per share) | ||||
| Bank A/c (250 × ₹8) Dr. | 2,000 | |||
| Share Forfeiture A/c (250 × ₹2) Dr. | 500 | |||
| To Share Capital A/c | 2,500 | |||
| (250 shares reissued to P at ₹8 per share, fully paid-up) | ||||
| Share Forfeiture A/c Dr. | 250 | |||
| To Capital Reserve A/c | 250 | |||
| (Balance in Share Forfeiture Account transferred to Capital Reserve) |
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.73 - 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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