Q X Ltd issued 10,000 Equity Shares of Rs 100 each at a premium of Rs - Accountancy - Accounting for Share Capital

Question

Q 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 reisuue only Also, show Shareholders' Funds in the
Balance Sheet before and after forfeiture and reissue

Neha Chopra · Accepted Answer

Dear Student,

No, the solution provided is absolutely correct because once we
have received the securities premium amount on issue of shares we
cannot debit this account for those shares, we can only debit this
account for the amount not received;

Like in the question total shares issued were 20,000 shares and
amount of securities premium account not received was only on 100
shares of Asha, so SPR would be debited only by
100 shares*20 = 2000 and not on all the shares
issued;

Also, the calls-in-arrear would include the amount not received on
Share Capital as well as SPR i e
(100×(50+40))+200×40 = 9,000+8,000 = 17,000

Hope so it clears your doubt, do let us know in case of any further
query!!

Regards,