Give balance sheet and explain the amounts.
Q. Illustration 54 ( Forfeiture of Shares Originally issued at Premium and reissued at Discount ). X Ltd. issued 10,000 Equity Shares of Rs.100 each at a premium of Rs.20 per share payable as Rs.30 per share on application, Rs.50 per share on allotment including premium and Rs.40 per share on first and final call.
All the shares were subscribed, money due on all shares was received except from Asha, holding 100 shares who failed to pay allotment and call money and Neeru holding 200 shares failed to pay the first and final call money. These 300 shares were forfeited. Out of the shares forfeited, 150 shares (including all shares of Asha) were reissued to Raja @ Rs. 80 per share as fully paid-up.
Pass Journal entries in the books of the company to record the forfeiture and reissue only. Also, show Shareholders' Funds in the Balance Sheet before and after forfeiture and reissue.
Q. Illustration 54 ( Forfeiture of Shares Originally issued at Premium and reissued at Discount ). X Ltd. issued 10,000 Equity Shares of Rs.100 each at a premium of Rs.20 per share payable as Rs.30 per share on application, Rs.50 per share on allotment including premium and Rs.40 per share on first and final call.
All the shares were subscribed, money due on all shares was received except from Asha, holding 100 shares who failed to pay allotment and call money and Neeru holding 200 shares failed to pay the first and final call money. These 300 shares were forfeited. Out of the shares forfeited, 150 shares (including all shares of Asha) were reissued to Raja @ Rs. 80 per share as fully paid-up.
Pass Journal entries in the books of the company to record the forfeiture and reissue only. Also, show Shareholders' Funds in the Balance Sheet before and after forfeiture and reissue.
