Q Pass journal entries for the forfeiture and re-issue in the following cases : (i) A Ltd - Accountancy - Accounting for Share Capital

Question

Q Pass journal entries for the forfeiture and re-issue in the
following cases :
(i) A Ltd forfeited 100 shares of Rs 10 each fully called-up for
non-payment of first call of Rs 3 per share and final call of Rs 3
per share All of these shares were re-issued as fully paid for Rs
10 per share
(ii) B Ltd forfeited 400 shares of Rs 10 each fully called-up for
non-payment of final call of Rs 3 per share 300 of these shares
were re-issued as fully paid for Rs 8 per share
iii) C Ltd forfeited 700 shares of Rs 10 each fully called-up on
which the holder has paid application money @Rs 3 and allotment
money@ Rs 2 per share Out of these, 600 shares were re-issued as
fully paid@ Rs 7 per share
iv) D Ltd forfeited 1,000 shares of Rs 10 each fully called-up on
which the holder has paid only the application money @ Rs 3 per
share Out of these, 600 shares were re-issued at 10 50 per share,
fully paid up

Q 39 Pass journal entries for the forfeiture and re-issue in the
following cases :
(a) X Ltd forfeited 700 shares of Ashok of Rs 10 each Rs 8
called-up, on which he had paid Rs 5 per share Out of these, 500
shares were re-issued for Rs 9 per share as fully paid
(b) Y Ltd forfeited 400 shares of Rs 10 each, Rs 6 called-up, for
non-payment of first call of Rs 2 per share Out of these, 300
shares were immediately re-issued at Rs 5 per share
(c) Z Ltd forfeited 300 shares of Rs 100 each on which first call
of Rs 20 per share was not received, the second and final call of
Rs 30 per share has not yet been called Out of these, 200 shares
were re-issued as Rs 70 paid-up for Rs 55 per share

Neha Chopra · Accepted Answer

Dear Student,

Solution to Q 38 is provided below Q 39 is of the same nature, we
request you to kindly attempt it once from your end and ask it in
different thread in case of any further query

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

(i)
In A
Ltd

Share Capital A/c
(100*10)
Dr
1,000

To Share First Call A/c
(100*3)

300

To Share Final Call A/c
(100*3)

300

To Share Forfeiture A/c
(100*4)

400

(Forfeiture of shares for
non-payment of call money)

Bank A/c
(100*10)
Dr
1,000

To Share Capital
A/c

1,000

(Forfeited shares
re-issued)

Share Forfeiture
A/c
Dr
400

To Capital Reserve
A/c

400

(Profit on re-issue
transferred to Capital Reserve)

(ii)
In B
Ltd

Share Capital A/c
(400*10)
Dr
4,000

To Share Final Call A/c
(400*3)

1,200

To Share Forfeiture A/c
(400*7)

2,800

(Forfeiture of shares for
non-payment of final call money)

Bank A/c
(300*8)
Dr
2,400

Share Forfeiture A/c
(300*2)
Dr
600

To Share Capital
A/c

3,000

(300 Forfeited shares
re-issued)

Share Forfeiture A/c
(2,100-600)
Dr
1,500

To Capital Reserve
A/c

1,500

(Profit on re-issue
transferred to Capital Reserve)

(iii)
In C
Ltd

Share Capital A/c
(700*10)
Dr
7,000

To Share Call A/c
(700*5)

3,500

To Share Forfeiture A/c
(700*5)

3,500

(Forfeiture of shares for
non-payment of call money)

Bank A/c
(300*7)
Dr
2,100

Share Forfeiture A/c
(300*3)
Dr
900

To Share Capital
A/c

3,000

(300 Forfeited shares
re-issued)

Share Forfeiture A/c
(1500-600)
Dr
600

To Capital Reserve
A/c

600

(Profit on re-issue
transferred to Capital Reserve)

(iv)
In D
Ltd

Share Capital A/c
(1000*10)
Dr
10,000

To Share allotment &
Call A/c (1000*7)

7,000

To Share Forfeiture A/c
(1000*3)

3,000

(Forfeiture of shares for
non-payment of allotment & call money)

Bank A/c (600*10
5)
Dr
6,300

To Share Capital
A/c

6,000

To Securities premium
A/c

300

(600 Forfeited shares
re-issued)

Share Forfeiture A/c
(600*3)
Dr
1,800

To Capital Reserve
A/c

1,800

(Profit on re-issue
transferred to Capital Reserve)

Regards,

Date	Particulars	LF	Amount (in Rs)	Amount (in Rs)
(i)	In A Ltd
	Share Capital A/c (100*10)	Dr	1,000
	To Share First Call A/c (100*3)			300
	To Share Final Call A/c (100*3)			300
	To Share Forfeiture A/c (100*4)			400
	(Forfeiture of shares for non-payment of call money)

	Bank A/c (100*10)	Dr	1,000
	To Share Capital A/c			1,000
	(Forfeited shares re-issued)

	Share Forfeiture A/c	Dr	400
	To Capital Reserve A/c			400
	(Profit on re-issue transferred to Capital Reserve)

(ii)	In B Ltd
	Share Capital A/c (400*10)	Dr	4,000
	To Share Final Call A/c (400*3)			1,200
	To Share Forfeiture A/c (400*7)			2,800
	(Forfeiture of shares for non-payment of final call money)

	Bank A/c (300*8)	Dr	2,400
	Share Forfeiture A/c (300*2)	Dr	600
	To Share Capital A/c			3,000
	(300 Forfeited shares re-issued)

	Share Forfeiture A/c (2,100-600)	Dr	1,500
	To Capital Reserve A/c			1,500
	(Profit on re-issue transferred to Capital Reserve)

(iii)	In C Ltd
	Share Capital A/c (700*10)	Dr	7,000
	To Share Call A/c (700*5)			3,500
	To Share Forfeiture A/c (700*5)			3,500
	(Forfeiture of shares for non-payment of call money)

	Bank A/c (300*7)	Dr	2,100
	Share Forfeiture A/c (300*3)	Dr	900
	To Share Capital A/c			3,000
	(300 Forfeited shares re-issued)

	Share Forfeiture A/c (1500-600)	Dr	600
	To Capital Reserve A/c			600
	(Profit on re-issue transferred to Capital Reserve)

(iv)	In D Ltd
	Share Capital A/c (1000*10)	Dr	10,000
	To Share allotment & Call A/c (1000*7)			7,000
	To Share Forfeiture A/c (1000*3)			3,000
	(Forfeiture of shares for non-payment of allotment & call money)

	Bank A/c (600*10.5)	Dr	6,300
	To Share Capital A/c			6,000
	To Securities premium A/c			300
	(600 Forfeited shares re-issued)

	Share Forfeiture A/c (600*3)	Dr	1,800
	To Capital Reserve A/c			1,800
	(Profit on re-issue transferred to Capital Reserve)