57 Record the Journal entries for forfeiture and reissue of shares fl the following cases (I) X Ltd - Accountancy -

Question

57 Record the Journal entries for forfeiture and reissue of shares
fl the following cases
(I) X Ltd forfeited 20 shares of 10 each, 7 called-up on which the
shareholder had paid appilcation
and allotment money of 5 per share Out of these, 15 shares
were reissued to Nareshas Rs 7 per share paid-up for Rs 8 per
share

Explain the Bold sentence in que no 57 (ii) ??

(ii) Y Ltd forfeited 90 shares of 10 each, 8 called-up issued at a
premium of 2 per share to 'R' for
non-payment of allotment money of 5 per share (including premium)
Out of these, 80 share were reissued to Sanjay as 8 called-up for
10 per share â€‹

Neha Chopra · Accepted Answer

Dear
Student,

Date
Particulars
LF
Amount (in
Rs)
Amount (in
Rs)

(i)
Share Capital A/c
(20*7)
Dr
140

To Share Forfeiture A/c
(20*5)

100

To Calls-in-arrears A/c
(20*2)

40

(20 shares forfeited for
non-payment of call money)

Bank A/c
(15*8)
Dr
120

To Securities Premium A/c
(15*1)

15

To Share Capital A/c
(15*7)

105

(15 shares re-issued at
Rs 8 per share)

Note: The sentence
re-issued to Naresh as Rs 7 per share paid -up for Rs 8 per share
means that on original shares Rs 7 has been called-up and the
forfeited shares are re-issued at Rs 8 per share thus Re 1 is part
of securities premium A/c)

Share forfeiture A/c
(15*5)
Dr
75

To Capital Reserve
A/c

75

(Shares forfeiture amount
transferred to Capital Reserve A/c)

(ii)
Share Capital A/c
(90*8)
Dr
720

Securities premium A/c
(90*2)

180

To Share Forfeiture A/c
(90*5)

450

To Share Allotment A/c
(90*5)

450

(90 shares were forfeited
for non-payment of allotement money including securities premium
A/c)

Bank A/c
(80*10)
Dr
800

To Share Capital A/c
(80*8)

640

To Securities Premium A/c
(80*2)

160

(80 shares re-issued for
Rs 10 per share Rs 8 called up)

Share forfeiture A/c
(80*5)
Dr
400

To Capital Reserve
A/c

400

(Forfeiture amount on
re-issued shares transferred to Capital reserve)

Regards,

Date	Particulars	LF	Amount (in Rs)	Amount (in Rs)
(i)	Share Capital A/c (20*7)	Dr	140
	To Share Forfeiture A/c (20*5)			100
	To Calls-in-arrears A/c (20*2)			40
	(20 shares forfeited for non-payment of call money)

	Bank A/c (15*8)	Dr	120
	To Securities Premium A/c (15*1)			15
	To Share Capital A/c (15*7)			105
	(15 shares re-issued at Rs 8 per share)
	Note: The sentence re-issued to Naresh as Rs 7 per share paid -up for Rs 8 per share means that on original shares Rs 7 has been called-up and the forfeited shares are re-issued at Rs 8 per share thus Re 1 is part of securities premium A/c)

	Share forfeiture A/c (15*5)	Dr	75
	To Capital Reserve A/c			75
	(Shares forfeiture amount transferred to Capital Reserve A/c)

(ii)	Share Capital A/c (90*8)	Dr	720
	Securities premium A/c (90*2)		180
	To Share Forfeiture A/c (90*5)			450
	To Share Allotment A/c (90*5)			450
	(90 shares were forfeited for non-payment of allotement money including securities premium A/c)

	Bank A/c (80*10)	Dr	800
	To Share Capital A/c (80*8)			640
	To Securities Premium A/c (80*2)			160
	(80 shares re-issued for Rs 10 per share Rs 8 called up)

	Share forfeiture A/c (80*5)	Dr	400
	To Capital Reserve A/c			400
	(Forfeiture amount on re-issued shares transferred to Capital reserve)