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Forfeiture and Re-issue of Share | Old is Gold |part-2


Old is gold Solution of Account Grade 12 

Forfeiture and Re-issue of share (2069 Supp Set A-2060 Supp.) | Part - 2

Click here for Forfeiture and Re-issue of share (2069 Supp Set A-2060 Supp.) | Part - 1

2069 Set A Q.No. 10

Working note

Applied share

Allotted share

Excess money

Adj. to allotment

Adj. to call

Refund

60000

30000

 

 

Full

15000

 

 

15000*30

450000

 

 

 

450000

 

 

 

 

 

 

                                                               Journal Entries

Date

Particular

Debit

Credit

 

Share allotment a/c Dr

Discount on issue of share a/c Dr

      To share capital

 (Being share allotment money made due at 10% discount)

2250000

750000

 

 

3000000

 

Bank a/c Dr

    To share allotment a/c

(Being share allotment money received)

1800000

 

1800000

 

 

Share first and final call a/c Dr

   To share capital

(Being Share first and final money made due )

2250000

 

2250000

 

 

Bank a/c Dr 

Calls in arrears a/c Dr (1000*30)

      To share first and final call a/c

(Being share first and final call money received except one share holder holding 100 shares fail to pay first and final call)

2220000

30000

 

 

 

2250000

 

 

 

Share capital a/c Dr

          To discount on issue of share a/c

         To call in arrears a/c

         To share forfeiture

(Being forfeiture of 1000 shares for nonpayment of first and final call money )

100000

 

10000

30000

60000

 

2068 Set B Q. No. 9

Journal entries

Particular

Debit

Credit

Share capital a/c Dr

         To call in arrears a/c

         To share forfeiture

(Being forfeiture of 200 shares for nonpayment of final call money)

2000

 

600

1400

Bank a/c Dr (100*6)

Share forfeiture a/c (100*4)

          To share capital

 (Being reissue of 100 shares of Rs 6 each at per share)

600

400

 

 

1000

Share forfeiture a/c Dr {(1400/200)*100-400}

         To capital reserve a/c

(Being gain on forfeiture amount transferred to capital reserve)

300

 

300

 

2068 Supp Q. No. 9

Journal entries

Particular

Debit

Credit

Share capital a/c Dr

         To call in arrears a/c

         To share forfeiture

(Being forfeiture of 200 shares for nonpayment of first and final call money)

20000

 

8000

12000

Bank a/c Dr  (200*80)

Share forfeiture a/c (200*20)

          To share capital

(Being reissue of 200 shares of Rs 80 each at per share)

16000

4000

 

 

20000

Share forfeiture a/c Dr

         To capital reserve a/c

(Being gain on forfeiture amount transferred to capital reserve)

8000

 

8000

 

2067 Supp Q.No. 10

Working note

Applied share

Allotted share

Excess money

Adj. to allotment

Adj. to call

Refund

2400

 

600

2000

400*20

8000

 

 

8000

 

 

 

 

600*20

12000

                                                               Journal Entries

Date

Particular

Debit

Credit

 

Share allotment a/c Dr

      To share capital

      To premium on issue of share a/c

 (Being share allotment money made due at 10% premium)

100000

 

80000

20000

 

 

Bank a/c Dr

Calls in arrears a/c Dr {50-(8000/2000)}*20

    To share allotment a/c

(Being share allotment money received except one shareholder holding 20 shares fail to pay allotment)

191080

920

 

 

192000

 

Share first and final call a/c Dr

   To share capital

(Being Share first and final money made due )

80000

 

80000

 

 

Bank a/c Dr 

Calls in arrears a/c Dr  (20*40)

      To share first and final call a/c

(Being share first and final call money received except one share holder holding 20 shares fail to pay first and final call)

79200

800

 

 

80000

 

 

 

 

Share capital a/c Dr (20*100)

Premium on issue of share a/c Dr (20*10)

         To call in arrears a/c

         To share forfeiture

(Being forfeiture of 20 shares for nonpayment of first and final call money )

2000

200

 

1720

480

 

 

 

2067 Supp Q. No. 10

Journal entries

Particular

Debit

Credit

Share capital a/c Dr

          To discount on issue of share a/c

         To call in arrears a/c

         To share forfeiture

(Being forfeiture of 200 shares for nonpayment of first and final call money)

2000

 

200

600

1200

 

Bank a/c Dr (200*6)

Discount on issue of share a/c Dr

Share forfeiture a/c (200*3)

          To share capital

 (Being reissue of 200 shares of Rs 6 each at per share)

1200

200

600

 

 

 

2000

 

Share forfeiture a/c Dr

         To capital reserve a/c

(Being gain on forfeiture amount transferred to capital reserve)

600

 

600

 

2066 (C) Q.No. 10

                                                               Journal Entries

Date

Particular

Debit

Credit

 

Share allotment a/c Dr

Discount on issue of share a/c Dr

      To share capital

 (Being share allotment money made due at 10% discount)

100000

50000

 

 

150000

 

Bank a/c Dr

Calls in arrears a/c Dr

    To share allotment a/c

(Being share allotment money received except one shareholder holding 200 shares fail to pay allotment money)

96000

4000

 

 

100000

 

Share first and final call a/c Dr

   To share capital

(Being Share first and final money made due )

200000

 

200000

 

 

Bank a/c Dr 

Calls in arrears a/c Dr

      To share first and final call a/c

(Being share first and final call money received except one share holder holding 200 shares fail to pay first and final call)

196000

8000

 

 

200000

 

 

 

Share capital a/c Dr

         To call in arrears a/c

         To share forfeiture

(Being forfeiture of 200 shares for nonpayment of first and final call money )

20000

 

12000

8000

 

Bank a/c Dr (200*60)

Discount on issue of share a/c Dr

Forfeiture a/c Dr

      To share capital

(Being 200 shares are re-issued at 60 each share)

12000

2000

6000

 

 

 

20000

 

2066 Q.No. 10

Working note

Applied share

Allotted share

Excess money

Adj. to allotment

Adj. to call

Refund

5000

6000

 

1000

Full

3000

 

 

3000*30

90000

 

 

 

90000

 

 

 

 

1000*30

30000

                                                               Journal Entries

Date

Particular

Debit

Credit

 

Share allotment a/c Dr

      To share capital

 (Being share allotment money made due)

320000

 

320000

 

 

Bank a/c Dr

    To share allotment a/c

(Being share allotment money received)

230000

 

230000

 

 

Share first and final call a/c Dr

   To share capital

(Being Share first and final money made due )

240000

 

240000

 

Bank a/c Dr 

Calls in arrears a/c Dr  (400*30)

      To share first and final call a/c

(Being share first and final call money received except one share holder holding 400 shares fail to pay first and final call)

228000

12000

 

 

240000

 

 

Share capital a/c Dr

         To call in arrears a/c

         To share forfeiture

(Being forfeiture of 400 shares for nonpayment of first and final call money )

40000

 

12000

28000

 

2066 Supp Q. No. 10

Journal entries

Particular

Debit

Credit

Share capital a/c Dr

         To call in arrears a/c

         To share forfeiture

(Being forfeiture of share 300 for nonpayment of first and final call money)

15000

 

4500

10500

Bank a/c Dr (200*40)

Share forfeiture a/c (200*10)

          To share capital

 (Being reissue of 200 shares of Rs 40 each at per share)

8000

2000

 

 

10000

Share forfeiture a/c Dr {(10500/300)*200-2000}

         To capital reserve a/c

(Being gain on forfeiture amount transferred to capital reserve)

5000

 

5000

 

2065 Q. No. 9

Journal entries

Particular

Debit

Credit

Share capital a/c Dr

         To call in arrears a/c

         To share forfeiture

(Being forfeiture of 500 shares for nonpayment of first and final call money)

50000

 

15000

35000

Bank a/c Dr (400*50)

Share forfeiture a/c (400*50)

          To share capital

 (Being reissue of 400 shares of Rs each at per share)

20000

20000

 

 

 

 

40000

 

 

Share forfeiture a/c Dr {(35000/500)*400-20000}

         To capital reserve a/c

(Being gain on forfeiture amount transferred to capital reserve)

8000

 

8000

 

2064 Q.No. 10

Working note

Applied share

Allotted share

Excess money

Adj. to allotment

Adj. to call

Refund

3000

4000

 

1000

Full

2000

 

2000*40

80000

 

 

 

80000

 

 

 

 

 

1000*40

40000

                                                               Journal Entries

Date

Particular

Debit

Credit

 

Share allotment a/c Dr

      To share capital

 (Being share allotment money made due)

150000

 

150000

 

 

Bank a/c Dr

    To share allotment a/c

(Being share allotment money received)

70000

 

70000

 

 

Share first and final call a/c Dr

   To share capital

(Being Share first and final money made due )

150000

 

150000

 

 

Bank a/c Dr 

Calls in arrears a/c Dr (100*30)

      To share first and final call a/c

(Being share first and final call money received except one share holder holding 100 shares fail to pay first and final call)

147000

3000

 

 

150000

 

 

 

Share capital a/c Dr

         To call in arrears a/c

         To share forfeiture

(Being forfeiture of 100 shares for nonpayment of first and final call money )

10000

 

3000

7000

 

 

2064 Set A Q.No. 1 (OLD)

Working note

Applied share

Allotted share

Excess money

Adj. to allotment

Adj. to call

Refund

5000

 

10000

Full

 

5000

 

 

5000*20

100000

 

 

 

100000

 

 

 

 

                                                               Journal Entries

Date

Particular

Debit

Credit

 

Share allotment a/c Dr

      To share capital

      To premium on issue of share a/c

 (Being share allotment money made due at 20% premium)

500000

 

300000

200000

 

 

 

Bank a/c Dr 

Calls in arrears a/c Dr{50- (100000/5000)}*200

    To share allotment a/c

(Being share allotment money received except one shareholder holding 200 shares fail to pay allotment)

394000

6000

 

 

400000

 

 

Share first and final call a/c Dr

   To share capital

(Being Share first and final money made due )

500000

 

500000

 

 

Bank a/c Dr 

Calls in arrears a/c Dr (200*50)

      To share first and final call a/c

(Being share first and final call money received except one share holder holding 200 shares fail to pay first and final call)

490000

10000

 

 

 

500000

 

 

 

Share capital a/c Dr

         To call in arrears a/c

         To share forfeiture

(Being forfeiture of 200 shares for nonpayment of allotment and first and final call money )

20000

 

16000

4000

 

 

 

2064 Q.No 2 (old)

Journal entries

Particular

Debit

Credit

Share capital a/c Dr

         To call in arrears a/c

         To share forfeiture

(Being forfeiture of 200 shares for nonpayment of first and final call money)

20000

 

14000

6000

 

Bank a/c Dr (200*80)

Share forfeiture a/c (200*20)

          To share capital

 (Being reissue of 200 shares of Rs 80 each at per share)

16000

4000

 

 

20000

Share forfeiture a/c Dr

         To capital reserve a/c

(Being gain on forfeiture amount transferred to capital reserve)

2000

 

2000

 

2064 Supp Q.No. 10

Working note

Applied share

Allotted share

Excess money

Adj. to allotment

Adj. to call

Refund

1000

 

2000

 

 

1000

 

 

1000*30

30000

 

 

 

30000

 

1000*30

30000

 

                                                               Journal Entries

Date

Particular

Debit

Credit

 

Share allotment a/c Dr

Discount on issue of share a/c Dr

      To share capital

 (Being share allotment money made due)

40000

20000

 

 

60000

 

 

Bank a/c Dr

Calls in arrears (100*30)

    To share allotment a/c

(Being share allotment money received except one shareholder holding 100 shares fail to pay allotment money)

7000

3000

 

 

10000

 

Share first and final call a/c Dr

   To share capital

(Being Share first and final money made due )

60000

 

60000

 

 

Bank a/c Dr 

Calls in arrears a/c Dr (100*30)

      To share first and final call a/c

(Being share first and final call money received except one share holder holding 100 shares fail to pay first and final call)

57000

3000

 

 

 

60000

 

 

 

Share capital a/c Dr

         To discount on issue of share a/c

         To call in arrears a/c

         To share forfeiture

(Being forfeiture of 100 shares for nonpayment of first and final call money )

10000

 

 

1000

6000

3000

 

 

 

 

Note Question said all the call money received except a holder holding 100 shares failed to pay on allotment and final call but it does not clear that which group of shareholders failed to pay allotment. 

Group II (i.e. pro-rata group) The sum of the allotment is 1000*30 = 30000 but they paid all the allotment money on application money hence, the group I shareholders failed to pay allotment money.

2063 Q.No 2

Journal entries

Particular

Debit

Credit

Share capital a/c Dr

         To call in arrears a/c

         To share forfeiture

(Being forfeiture of 1000 shares for nonpayment of first and final call money)

100000

 

25000

75000

 

Bank a/c Dr (400*60)

Share forfeiture a/c (400*40)

          To share capital

 (Being reissue of 400 shares of Rs 60 each at per share)

24000

16000

 

 

40000

Share forfeiture a/c Dr {(75000/1000)*400}-16000

         To capital reserve a/c

(Being gain on forfeiture amount transferred to capital reserve)

14000

 

14000

 

 

2062 Q. No. 2

Journal entries

Particular

Debit

Credit

Share capital a/c Dr

         To call in arrears a/c

         To share forfeiture

(Being forfeiture of 500 shares for nonpayment of first and final call money)

25000

 

10000

15000

 

 

Bank a/c Dr (400*40)

Share forfeiture a/c

          To share capital

 (Being reissue of 400 shares of Rs 40 each at per share)

16000

24000

 

 

40000

Capital reserve a/c Dr{(1500/500)*400-24000}

         To forfeiture a/c

(Being loss on forfeiture amount transferred to capital reserve)

8000

 

8000

 

2061  Q.No. 2

Journal entries

Particular

Debit

Credit

Share capital a/c Dr

       To discount on issue of share a/c

         To call in arrears a/c

         To share forfeiture

(Being forfeiture of 400 shares for nonpayment of first and final call money)

40000

 

4000

12000

24000

 

Bank a/c Dr (300*50)

Discount on issue of share a/c

Share forfeiture a/c (300*40)

          To share capital

 (Being reissue of 300 shares of Rs 50  each at per share)

15000

4000

12000

 

 

 

 

30000

Share forfeiture a/c Dr {(24000/400)*300}-12000

         To capital reserve a/c

(Being gain on forfeiture amount transferred to capital reserve)

6000

 

6000

 

2060 Q.No. 1

Working note

Applied share

Allotted share

Excess money

Adj. to allotment

Adj. to call

Refund

3000

 

12000

 

 

10000

 

 

2000*3

6000

 

 

 

6000

 

3000*3

9000

 

 

                                                               Journal Entries

Date

Particular

Debit

Credit

 

Share allotment a/c Dr

      To share capital

      To premium on issue of share a/c

 (Being share allotment money made due at 20% premium)

50000

 

30000

20000

 

 

 

Bank a/c Dr

Calls in arrears a/c Dr {5-(6000/10000)*200}

    To share allotment a/c

(Being share allotment money received except one shareholder holding 200 shares fail to pay allotment)

43120

880

 

 

44000

 

Share first and final call a/c Dr

   To share capital

(Being Share first and final money made due )

40000

 

40000

 

 

Bank a/c Dr 

Calls in arrears a/c Dr (200*4)

      To share first and final call a/c

(Being share first and final call money received except one share holder holding 200 shares fail to pay first and final call)

39200

800

 

 

40000

 

 

 

Share capital a/c Dr

Premium on issue of share a/c Dr

         To call in arrears a/c

         To share forfeiture

(Being forfeiture of 200 shares for nonpayment of allotment and first and final call money )

2000

400

 

 

1680

720

 

2060  Q.No 3

Journal entries

Particular

Debit

Credit

Share capital a/c Dr

         To call in arrears a/c

         To share forfeiture

(Being forfeiture of 100 shares for nonpayment of allotment and first and final call money)

10000

 

7000

3000

Bank a/c Dr (60*80)

Share forfeiture a/c (60*20)

          To share capital

 (Being re-issue of  shares of Rs each at per share)

4800

1200

 

 

 

6000

Share forfeiture a/c Dr {(3000/100)*60}-1200

         To capital reserve a/c

(Being gain on forfeiture amount transferred to capital reserve)

600

 

600

 

2060 Supp Q.no 2

Working note

Applied share

Allotted share

Excess money

Adj. to allotment

Adj. to call

Refund

3000

 

12000

 

 

10000

 

 

2000*30

60000

 

 

 

60000

 

3000*30

90000

 

 

                                                               Journal Entries

Date

Particular

Debit

Credit

 

Share allotment a/c Dr

      To share capital

 (Being share allotment money made due)

400000

 

400000

 

 

Bank a/c Dr

Calls in arrears a/c Dr {40-(60000/10000)}*120

    To share allotment a/c

(Being share allotment money received except one shareholder holding 120 shares fail to pay allotment money)

395920

4080

 

 

400000

 

 

Share first and final call a/c Dr

   To share capital

(Being Share first and final money made due )

300000

 

300000

 

Bank a/c Dr 

Calls in arrears a/c Dr (120*30)

      To share first and final call a/c

(Being share first and final call money received except one share holder holding 120 shares fail to pay first and final call)

296400

3600

 

 

 

300000

 

 

 

Share capital a/c Dr

         To call in arrears a/c

         To share forfeiture

(Being forfeiture of 120 shares for nonpayment of first and final call money )

12000

 

7680

4320

 

 

2060 Supp Q.No. 2

Journal entries

Particular

Debit

Credit

Share capital a/c Dr

          To discount on issue of share

         To call in arrears a/c

         To share forfeiture

(Being forfeiture of 400 shares for nonpayment of first and final call money)

40000

 

4000

16000

20000

Bank a/c Dr (400*70)

Discount on issue of share a/c Dr

Share forfeiture a/c (400*20)

          To share capital

 (Being reissue of 400 shares of Rs 70 each at per share)

28000

4000

8000

 

 

 

40000

Share forfeiture a/c Dr

         To capital reserve a/c

(Being gain on forfeiture amount transferred to capital reserve)

12000

 

12000


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