Doubts

VXN Ltd. invited applications for issuing 50,000 equity shares of Rs. 10 each at a premium of Rs. 8 per share. The amount was payable as follows:

On ApplicationRs. 4 per share (Including Rs. 2 premium)On AllotmentRs. 6 per share (Including Rs. 3 premium)On First CallRs. 5 per share (Including Rs. 1 premium)On Second and Final CallBalance Amount The issue was…

Continue ReadingVXN Ltd. invited applications for issuing 50,000 equity shares of Rs. 10 each at a premium of Rs. 8 per share. The amount was payable as follows:

Panasonic Ltd. was formed on 1st April, 2010 with an authorised capital of Rs. 2,00,000, divided into 2,000 Equity Shares of Rs. 100 each. 1,000 shares were issued as fully paid to the vendors of building for payment of the purchase consideration. The remaining 1,000 shares were offered or public subscription at a premium of Rs. 5 per share payable as:

On application Rs. 10 per share On allotment Rs. 25 per share (including premium) On first callRs. 40 per share On final call Rs. 30 per share Applications were received for 900 shares which were duly allotted and the allotment…

Continue ReadingPanasonic Ltd. was formed on 1st April, 2010 with an authorised capital of Rs. 2,00,000, divided into 2,000 Equity Shares of Rs. 100 each. 1,000 shares were issued as fully paid to the vendors of building for payment of the purchase consideration. The remaining 1,000 shares were offered or public subscription at a premium of Rs. 5 per share payable as:

Telecom Ltd.’ issued 20,000 Equity Shares of Rs. 10 each at a premium of Rs. 5 per share, payable as: Rs. 7 (including premium) on application, Rs. 5 on allotment and the balance after three months of allotment. A shareholder to whom 200 shares were allotted failed to pay the allotment and call money and his shares were forfeited. 160 of the forfeited shares were reissued for Rs. 1,600. Give necessary entries in company’s Journal and the Balance Sheet.

Solution

Continue ReadingTelecom Ltd.’ issued 20,000 Equity Shares of Rs. 10 each at a premium of Rs. 5 per share, payable as: Rs. 7 (including premium) on application, Rs. 5 on allotment and the balance after three months of allotment. A shareholder to whom 200 shares were allotted failed to pay the allotment and call money and his shares were forfeited. 160 of the forfeited shares were reissued for Rs. 1,600. Give necessary entries in company’s Journal and the Balance Sheet.

Gaurav applied for 5,000 shares of Rs. 10 each at a premium of 2.50 per share. But he was allotted only 2,500 shares on pro rata basis. After having paid Rs. 3 per share on application, he did not pay allotment money of Rs. 4.50 per share (including premium) and on his subsequent failure to pay the first call of Rs. 2 per share, his shares were forfeited. These shares were reissued at the rate of Rs. 8 per share credited as fully paid. Pass journal entries to record the forfeiture and reissue of shares.

Solution

Continue ReadingGaurav applied for 5,000 shares of Rs. 10 each at a premium of 2.50 per share. But he was allotted only 2,500 shares on pro rata basis. After having paid Rs. 3 per share on application, he did not pay allotment money of Rs. 4.50 per share (including premium) and on his subsequent failure to pay the first call of Rs. 2 per share, his shares were forfeited. These shares were reissued at the rate of Rs. 8 per share credited as fully paid. Pass journal entries to record the forfeiture and reissue of shares.

Vishesh Ltd. forfeited 1,000 Equity Shares of Rs. 10 each issued at a premium of Rs. 2 per share for non-payment of allotment money of Rs. 5 per share including premium. The final call of Rs. 2 per share was not yet called on these shares Of the forfeited shares 800 shares were reissued at Rs. 12 per share as fully paid-up. The remaining shares were reissued at Rs. 11 per share fully paid-up.

Solution

Continue ReadingVishesh Ltd. forfeited 1,000 Equity Shares of Rs. 10 each issued at a premium of Rs. 2 per share for non-payment of allotment money of Rs. 5 per share including premium. The final call of Rs. 2 per share was not yet called on these shares Of the forfeited shares 800 shares were reissued at Rs. 12 per share as fully paid-up. The remaining shares were reissued at Rs. 11 per share fully paid-up.

JCV Ltd., forfeited 200 shares of Rs. 10 each issued at a premium of Rs. 2 per share for the non-payment of allotment money of Rs. 3 per share (including premium). The first and final call of Rs. 4 per share has not been made as yet. 50% of the forfeited shares were reissued at Rs. 8 per share as fully paid-up. Pass necessary Journal entries for the forfeiture and reissue of shares.

Solution

Continue ReadingJCV Ltd., forfeited 200 shares of Rs. 10 each issued at a premium of Rs. 2 per share for the non-payment of allotment money of Rs. 3 per share (including premium). The first and final call of Rs. 4 per share has not been made as yet. 50% of the forfeited shares were reissued at Rs. 8 per share as fully paid-up. Pass necessary Journal entries for the forfeiture and reissue of shares.

150 shares of Rs. 10 each issued at a premium of Rs. 4 per share payable with allotment were forfeited for non-payment of allotment money of Rs. 8 per share including premium. The first and final call of Rs. 4 per Pass Journal entries in the books of X Ltd. for the above. 

Solution

Continue Reading150 shares of Rs. 10 each issued at a premium of Rs. 4 per share payable with allotment were forfeited for non-payment of allotment money of Rs. 8 per share including premium. The first and final call of Rs. 4 per Pass Journal entries in the books of X Ltd. for the above. 

X Ltd. forfeited 100 shares of Rs. 10 each (Rs. 8 called-up) issued at a premium of Rs. 2 per share to Mr. R, on which he had paid applications money of Rs. 5 per share, for non-payment of allotment money of Rs. 5 per share (including premium). Out of these, 70 shares were reissued to Mr. Sanjay as Rs. 8 called-up for Rs. 7 per share. Give necessary journal entries relating to forfeiture and reissue of shares.

Solution

Continue ReadingX Ltd. forfeited 100 shares of Rs. 10 each (Rs. 8 called-up) issued at a premium of Rs. 2 per share to Mr. R, on which he had paid applications money of Rs. 5 per share, for non-payment of allotment money of Rs. 5 per share (including premium). Out of these, 70 shares were reissued to Mr. Sanjay as Rs. 8 called-up for Rs. 7 per share. Give necessary journal entries relating to forfeiture and reissue of shares.

The Directors of a company forfeited 300 shares of Rs. 10 each issued at a premium of Rs. 3 per share, for the non-payment of the first call money of Rs. 2 per share. The final call of Rs. 2 per share has not been made. Half the forfeited shares were reissued at Rs. 1,500 as fully paid-up. Record the journal entries for the forfeiture and reissue of shares.

Solution

Continue ReadingThe Directors of a company forfeited 300 shares of Rs. 10 each issued at a premium of Rs. 3 per share, for the non-payment of the first call money of Rs. 2 per share. The final call of Rs. 2 per share has not been made. Half the forfeited shares were reissued at Rs. 1,500 as fully paid-up. Record the journal entries for the forfeiture and reissue of shares.