forfeiture of share on pro-rata basis - Accountancy - Accounting for Share Capital

Question

forfeiture of share on pro-rata basis

Sirjan Arneja · Accepted Answer

Dear Student,

Date
Particulars
LF
Dr
Cr

Bank A/c Dr
To Share Application and Allotment A/c
(Being 100000 shares applied for)

400000

Share Application and Allotment A/c Dr
To Share Capital A/c
To Share 1st call A/c
(Being shares allotted on pro-rata basis)

400000

300000
100000

Share 1st call A/c Dr
To Share Capital A/c
(Being 1st call made)

225000

Bank A/c Dr
Calls in arrears A/c Dr
To Share 1st call A/c
(Being call money received from all shareholders except Vibha)

123750
1250

125000

Share Capital A/c Dr
To Share Forfeiture A/c
To Calls in arrears A/c
(Being shares of Vibha Forfeited)

5250

4000
1250

Share 2nd and final call A/c Dr
To Share Capital A/c
(Being 2nd call made)

222750

Bank A/c Dr
Calls in arrears A/c Dr
To Share 2nd and final call A/c
(Being money received from all shareholders except Monika)

220500
2250

â€‹â€‹â€‹â€‹222750

Share Capital A/c Dr
To Share Forfeiture A/c
To Calls in arrears A/c
(Being shares of Monika Forfeited)

7500

5250
2250

Bank A/c Dr
Share Forfeiture A/c Dr
To share Capital A/c
(Being forfeited shares reissued to Mohit)

9000
6000

15000

Share Forfeiture A/c Dr
To Capital Reserve A/c
(Being excess of share forfeited a/c transferred to capital
reserve)

3250

Working notes:
1) VibhaNo  of shares alloted=750No
 of shares applied=10000075000×750=1000Amount due on application=750×4=3000amount received on application=1000×4=4000excess=1000amount due on 1st call=750×3= 2250(-) excess= (1000)arrears=12502)MonicaNo
 of shares applied=1000no
 of shares alloted=75000100000×1000=750
Regards

Date	Particulars	LF	Dr.	Cr.
	Bank A/c Dr. To Share Application and Allotment A/c (Being 100000 shares applied for)		400000	400000
	Share Application and Allotment A/c Dr. To Share Capital A/c To Share 1st call A/c (Being shares allotted on pro-rata basis)		400000	300000 100000
	Share 1st call A/c Dr. To Share Capital A/c (Being 1st call made)		225000	225000
	Bank A/c Dr. Calls in arrears A/c Dr. To Share 1st call A/c (Being call money received from all shareholders except Vibha)		123750 1250	125000
	Share Capital A/c Dr. To Share Forfeiture A/c To Calls in arrears A/c (Being shares of Vibha Forfeited)		5250	4000 1250
	Share 2nd and final call A/c Dr. To Share Capital A/c (Being 2nd call made)		222750	222750
	Bank A/c Dr. Calls in arrears A/c Dr. To Share 2nd and final call A/c (Being money received from all shareholders except Monika)		220500 2250	222750
	Share Capital A/c Dr. To Share Forfeiture A/c To Calls in arrears A/c (Being shares of Monika Forfeited)		7500	5250 2250
	Bank A/c Dr. Share Forfeiture A/c Dr. To share Capital A/c (Being forfeited shares reissued to Mohit)		9000 6000	15000
	Share Forfeiture A/c Dr. To Capital Reserve A/c (Being excess of share forfeited a/c transferred to capital reserve)		3250	3250