Doubts

VT Ltd forfeited 200 shares of Rs. 10 each, issued at a premium of Rs. 5 per share, held by Mohan for non-payment of the final call of Rs. 3 per share. 100 out of these shares were reissued to Narendra at a discount of Rs. 4 per share. Journalise. VT Ltd forfeited 200 shares of Rs. 10 each, issued at a premium of Rs. 5 per share, held by Mohan for non-payment of the final call of Rs. 3 per share. 100 out of these shares were reissued to Narendra at a discount of Rs. 4 per share. Journalise.

Solution

Continue ReadingVT Ltd forfeited 200 shares of Rs. 10 each, issued at a premium of Rs. 5 per share, held by Mohan for non-payment of the final call of Rs. 3 per share. 100 out of these shares were reissued to Narendra at a discount of Rs. 4 per share. Journalise. VT Ltd forfeited 200 shares of Rs. 10 each, issued at a premium of Rs. 5 per share, held by Mohan for non-payment of the final call of Rs. 3 per share. 100 out of these shares were reissued to Narendra at a discount of Rs. 4 per share. Journalise.

Pass journal entries in the following cases:M Ltd forfeited 200 Equity Shares of Rs.10 each, issued at a premium of Rs. 5 per share, held by Ram for non-payment of the final call of Rs. 3 per share. Of these, 100 shares were reissued to Vishu at a discount of   Rs. 4 per share.

Solution

Continue ReadingPass journal entries in the following cases:M Ltd forfeited 200 Equity Shares of Rs.10 each, issued at a premium of Rs. 5 per share, held by Ram for non-payment of the final call of Rs. 3 per share. Of these, 100 shares were reissued to Vishu at a discount of   Rs. 4 per share.

A share of Rs. 100 issued at a premium of Rs. 10 on which Rs. 80 (including premium) was called and Rs. 60 (including premium) was paid, has been forfeited. This share was afterwards reissued as fully paid-up for Rs. 70. Give Journal entries to record the above.

Solution

Continue ReadingA share of Rs. 100 issued at a premium of Rs. 10 on which Rs. 80 (including premium) was called and Rs. 60 (including premium) was paid, has been forfeited. This share was afterwards reissued as fully paid-up for Rs. 70. Give Journal entries to record the above.

Midee Ltd. invited applications for issuing 27,000 shares of Rs. 100 each payable as follows Rs. 50—per share on application; Rs. 10—per share on allotment and Balance—on First and Final call. Applications were received for 40,000 shares. Full allotment was made to the applicants of 7,000 shares. The remaining applicants were allotted 20,000 shares on pro-rata basis. Excess money received on applications was adjusted towards allotment and call. Asha, holding 600 shares was belonged to the category of applicants to whom full allotment was made, paid the call money at the time of allotment. Ankur, who belonged to the category of applicants to whom shares were allotted on pro rata basis did not pay anything after application on his 200 shares. Ankur’s shares were forfeited after the First and Final call. These shares were later reissued at Rs. 105 per share as fully paid-up. Pass necessary journal entries in the books of Midee Ltd. for the above transactions, by opening Calls-in-Arrears and Calls-in-Advance Accounts wherever necessary.

Solution

Continue ReadingMidee Ltd. invited applications for issuing 27,000 shares of Rs. 100 each payable as follows Rs. 50—per share on application; Rs. 10—per share on allotment and Balance—on First and Final call. Applications were received for 40,000 shares. Full allotment was made to the applicants of 7,000 shares. The remaining applicants were allotted 20,000 shares on pro-rata basis. Excess money received on applications was adjusted towards allotment and call. Asha, holding 600 shares was belonged to the category of applicants to whom full allotment was made, paid the call money at the time of allotment. Ankur, who belonged to the category of applicants to whom shares were allotted on pro rata basis did not pay anything after application on his 200 shares. Ankur’s shares were forfeited after the First and Final call. These shares were later reissued at Rs. 105 per share as fully paid-up. Pass necessary journal entries in the books of Midee Ltd. for the above transactions, by opening Calls-in-Arrears and Calls-in-Advance Accounts wherever necessary.

Slow & Steady Ltd. invited applications for 10,000 Equity Shares of Rs. 10 each for public subscription. The amount of these shares was payable as: On application Rs. 1 per share, on allotment Rs. 2 per share, on first call Rs. 3 per share and on second and final call Rs. 4 per share. All sums payable on application, allotment and calls were duly received with the following exceptions: (i) A, who held 200 shares, failed to pay the money on allotments and calls.(ii) B, to whom 150 shares were allotted, failed to pay the money on first call and final call.(iii) C, who held 50 shares, did not pay the amount of second and final call.The shares of A, B and C were forfeited and were subsequently reissued for cash as fully paid-up at a discount of 5%.Pass necessary Journal entries to record these transactions in the books of X Ltd.

Solution

Continue ReadingSlow & Steady Ltd. invited applications for 10,000 Equity Shares of Rs. 10 each for public subscription. The amount of these shares was payable as: On application Rs. 1 per share, on allotment Rs. 2 per share, on first call Rs. 3 per share and on second and final call Rs. 4 per share. All sums payable on application, allotment and calls were duly received with the following exceptions: (i) A, who held 200 shares, failed to pay the money on allotments and calls.(ii) B, to whom 150 shares were allotted, failed to pay the money on first call and final call.(iii) C, who held 50 shares, did not pay the amount of second and final call.The shares of A, B and C were forfeited and were subsequently reissued for cash as fully paid-up at a discount of 5%.Pass necessary Journal entries to record these transactions in the books of X Ltd.

Software Ltd. company with registered capital of Rs. 5,00,000 in shares of Rs. 10 each issued 20,000 of such shares payable Rs. 2 on application, Rs. 4 on allotment, Rs. 2 on first call Rs. 2 on final call. All the money payable on allotment was duly received but on the first call being made, one shareholder paid the entire balance on his holding of 300 shares and five shareholders with a total holding of 1,000 shares failed to pay their dues on the first call. These shares were forfeited for non-payment of first call money. Final call was made and all the money due was received. Later on, forfeited shares were reissued @ Rs. 6 per share as fully paid-up. Record the above in the company’s Journal and prepare the Balance Sheet.

Solution

Continue ReadingSoftware Ltd. company with registered capital of Rs. 5,00,000 in shares of Rs. 10 each issued 20,000 of such shares payable Rs. 2 on application, Rs. 4 on allotment, Rs. 2 on first call Rs. 2 on final call. All the money payable on allotment was duly received but on the first call being made, one shareholder paid the entire balance on his holding of 300 shares and five shareholders with a total holding of 1,000 shares failed to pay their dues on the first call. These shares were forfeited for non-payment of first call money. Final call was made and all the money due was received. Later on, forfeited shares were reissued @ Rs. 6 per share as fully paid-up. Record the above in the company’s Journal and prepare the Balance Sheet.

A holds 100 shares of Rs. 10 each on which he has paid Rs. 1 per share on application.B holds 200 shares of Rs. 10 each on which he has paid Rs. 1 and Rs. 2 per share on application and allotment respectively. C holds 300 shares of Rs. 10 each and has paid Rs. 1 on application, Rs. 2 on allotment and Rs. 3 on first call. They all fail to pay their arrears and the second call of Rs. 2 per share. Shares are forfeited and subsequently reissued @ Rs. 11 per share as fully paid-up. journalise the above

Solution

Continue ReadingA holds 100 shares of Rs. 10 each on which he has paid Rs. 1 per share on application.B holds 200 shares of Rs. 10 each on which he has paid Rs. 1 and Rs. 2 per share on application and allotment respectively. C holds 300 shares of Rs. 10 each and has paid Rs. 1 on application, Rs. 2 on allotment and Rs. 3 on first call. They all fail to pay their arrears and the second call of Rs. 2 per share. Shares are forfeited and subsequently reissued @ Rs. 11 per share as fully paid-up. journalise the above

Record the journal entries for forfeiture and reissue of shares in the following cases:(i) Basak Ltd. forfeited 20 shares of Rs. 10 each, Rs. 7 called-up on which the shareholder had paid application and allotment money of Rs. 5 per share. Out of these, 15 shares were reissued to Naresh as Rs. 7 per share paid-up for Rs. 8 per share.(ii) Y Ltd. forfeited 90 shares of Rs. 10 each, Rs. 8 called-up issued at a premium of Rs. 2 per share to ‘R‘ for non-payment of allotment money of Rs. 5 per share (including premium). Out of these, 80 shares were reissued to Sanjay as Rs. 8 called-up for Rs. 10 per share.

Solution

Continue ReadingRecord the journal entries for forfeiture and reissue of shares in the following cases:(i) Basak Ltd. forfeited 20 shares of Rs. 10 each, Rs. 7 called-up on which the shareholder had paid application and allotment money of Rs. 5 per share. Out of these, 15 shares were reissued to Naresh as Rs. 7 per share paid-up for Rs. 8 per share.(ii) Y Ltd. forfeited 90 shares of Rs. 10 each, Rs. 8 called-up issued at a premium of Rs. 2 per share to ‘R‘ for non-payment of allotment money of Rs. 5 per share (including premium). Out of these, 80 shares were reissued to Sanjay as Rs. 8 called-up for Rs. 10 per share.

Show the forfeiture and reissue entries under each of the following cases:(i) X Ltd. forfeited 300 shares of Rs. 10 each, Rs. 8 called-up held by Mr.  A for non-payment of second call money of Rs. 3 per share. These shares were reissued to Mr. Z for Rs. 10 per share as fully paid-up.(ii) Y Ltd. forfeited 400 shares of Rs. 10 each, fully called-up, held by Mr. B for non-payment of final call money of Rs. 4 per share. These shares were reissued to Mr. T at Rs. 12 per share as fully paid-up.(iii) LightLtd. forfeited 250 shares of Rs. 10 each, fully called-up held by Mr. C for non-payment of allotment money of Rs. 3 per share and first and final call money of Rs. 4 per share. These shares were reissued @ Rs. 8 per share as fully paid-up to Mr. P.

Solution

Continue ReadingShow the forfeiture and reissue entries under each of the following cases:(i) X Ltd. forfeited 300 shares of Rs. 10 each, Rs. 8 called-up held by Mr.  A for non-payment of second call money of Rs. 3 per share. These shares were reissued to Mr. Z for Rs. 10 per share as fully paid-up.(ii) Y Ltd. forfeited 400 shares of Rs. 10 each, fully called-up, held by Mr. B for non-payment of final call money of Rs. 4 per share. These shares were reissued to Mr. T at Rs. 12 per share as fully paid-up.(iii) LightLtd. forfeited 250 shares of Rs. 10 each, fully called-up held by Mr. C for non-payment of allotment money of Rs. 3 per share and first and final call money of Rs. 4 per share. These shares were reissued @ Rs. 8 per share as fully paid-up to Mr. P.