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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Healthy Foods Ltd. had an authorised capital of ₹50,00,000, i.e. 5,00,000 equity shares of ₹10 each, and issued 3,75,000 equity shares for subscription at a premium of 20%, payable ₹4 on application, ₹5 on allotment, and the balance as first and final call. The shares were fully subscribed and due amounts were received, except allotment money on 25,000 shares. These shares were forfeited. Later, these shares were reissued at ₹7 paid-up, and ₹50,000 was transferred to Capital Reserve. The first and final call was then demanded from the shareholders and was received, except on 10,000 shares, which was transferred to Calls-in-Arrears Account. Pass the Journal entries for forfeiture, reissue of forfeited shares, and the first and final call.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Share Capital A/c (25,000 × ₹7) Dr. | 1,75,000 | |||
| Securities Premium Reserve A/c (25,000 × ₹2) Dr. | 50,000 | |||
| To Forfeited Shares A/c (25,000 × ₹4) | 1,00,000 | |||
| To Calls-in-Arrears A/c (25,000 × ₹5) | 1,25,000 | |||
| (25,000 shares forfeited for non-payment of allotment) | ||||
| Bank A/c (25,000 × ₹5) Dr. | 1,25,000 | |||
| Forfeited Shares A/c (25,000 × ₹2) Dr. | 50,000 | |||
| To Share Capital A/c (25,000 × ₹7) | 1,75,000 | |||
| (25,000 forfeited shares reissued at ₹5 per share, ₹7 paid-up) | ||||
| Forfeited Shares A/c Dr. | 50,000 | |||
| To Capital Reserve A/c | 50,000 | |||
| (Full forfeited amount on the 25,000 reissued shares transferred to Capital Reserve) | ||||
| Share First and Final Call A/c (3,75,000 × ₹3) Dr. | 11,25,000 | |||
| To Share Capital A/c | 11,25,000 | |||
| (First and final call due on 3,75,000 shares at ₹3 each) | ||||
| Bank A/c (3,65,000 × ₹3) Dr. | 10,95,000 | |||
| Calls-in-Arrears A/c (10,000 × ₹3) Dr. | 30,000 | |||
| To Share First and Final Call A/c | 11,25,000 | |||
| (First and final call received except on 10,000 shares, transferred to Calls-in-Arrears) |
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.94 - 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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