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

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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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Neupane Nirmal

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

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