Q. 1 Ak Ltd. forfeited 300 shares of ₹ 10 each, fully called up, held by Ram for non-payment of allotment money of ₹ 3 per share and final call money of ₹ 4 per share. Out of these shares 250 were re-issued to Shyam for a total payment of ₹ 2,000. Give Journal entries for forfeiture and re-issue.
Ans : Capital Reserve ₹ 250
Q. 2 A limited Company forfeited 100 equity shares of the face value of ₹ 10 each, ₹ 6 per share called up, for non payment of first call of ₹ 2 per share. The forfeited shares were subsequently re-issued as fully paid @ ₹ 7 each. Give necessary entries in company's Journal.
Ans : Capital Reserve ₹ 100
Q. 3 1,000 shares of ₹ 10 each issued at par were forfeited for the non payment of the final call of ₹ 2 per share. These shares were re-issued @ ₹ 8 per share fully paid up. Journalise the forfeiture and re-issue of shares.
Ans : Capital Reserve ₹ 6,000
Q. 4 Taxneco Limited had issued capital of 2,00,000 Equity shares of ₹ 20 each, on which ₹ 17.50 per share has been called-up. calls-in-arrears in respect of 200 shares held by P amounted to ₹ 1,000 on September 30, 2012. By a resolution of the Board of Director dated the October 10, 2012, these 200 shares were forfeited and reissued at ₹ 12.50 per share paid in consideration of ₹ 2,000 and immediate payment of ₹ 5 per share in cash to make them ₹ 17.50 per share paid-up. Record Journal entries in the books of Taxneco Limited to record the above.
Ans : Capital Reserve ₹ 2,000
Q. 5 PS Ltd. forfeited 500 Equity Shares of ₹ 100 each for the non-payment of first call of ₹ 30 per share. The final call of ₹ 10 per share was not yet made. The forfeited shares were reissued for ₹ 65,000 fully paidup.
Pass the necessary Journal entries.
Ans : Capital Reserve ₹ 30,000
Q. 6 SSS Ltd. forfeited 1,000 Equity shares of ₹ 100 each for the non-payment call ₹ 20 per share and second and final call of ₹ 25 per share. State :-
(i) Can these shares be reissued ?
(ii) If yes, state the minimum amount at which these shares can be reissued ?
(iii) If these shares were reissued at ₹ 50 per share fully paid-up, what will be the amount of Capital Reserve ?
Ans : (i) Yes, (ii) ₹ 45, (iii) ₹ 5,000
Q. 7 M Limited forfeited 2,000 equity shares of ₹ 10 each, issued at a premium of ₹ 5 per share, held by Ram for non-payment of the final call of ₹ 3 per share. Of these, 100 shares were re-issued to Vishu at a discount of ₹ 4 per share.
Ans : Capital Reserve ₹ 300
Q. 8 X Ltd. forfeited 1,000 shares of ₹ 10 each (₹ 8 called up) for the non-payment of the allotment money of ₹ 5 per share including ₹ 2 as premium. Of these 800 shares were re-issued to S at ₹ 7 per share as ₹ 8 called up. Journalise the above transactions in the books of X Ltd.
Ans : Capital Reserve ₹ 3,200
Q. 9 A company forfeited 100 equity shares of ₹ 100 each issued at a premium of 50% (to be paid at the time of allotment) on which first call money of ₹ 30 per share was not received; final call of ₹ 20 is yet to be made. These shares were subsequently re-issued at ₹ 70 per share as ₹ 80 paid up. Give necessary Journal entries regarding forfeiture and re-issue of shares.
Ans : Capital Reserve ₹ 4,000
Q. 10 50 shares of ₹ 10 each issued at a premium of ₹ 5 each payable with allotment were forfeited for the non-payment of allotment money of ₹ 9 per share including premium. The first and final call on these shares at ₹ 3 per share were not made. The forfeited shares were re-issued @ ₹ 12 per share fully paid up.
Journalise.
Ans : Capital Reserve ₹ 150
Q. 11 The Directors of a company forfeited 200 shares of ₹ 10 each issued at a premium of ₹ 3 per share, for the non-payment of the first call money of ₹ 3 per share. The final call of ₹ 2 per share has not been made. Half of the forfeited shares were reissued for ₹ 1,000 fully paid. Record the journal entries for the forfeiture and reissued of shares.
Ans : Capital Reserve ₹ 500
Q. 12 X Ltd. forfeited 150 shares of ₹ 20 each issued at a premium of ₹ 5 per share for the non payment of the second and final call of ₹ 7 per share. 100 of these shares were reissued @ ₹ 21 per share fully paid.
Journalise the above transactions regarding the forfeiture and reissue.
Ans : Capital Reserve ₹ 1,300
Q. 13 M Ltd. forfeited 2,000 shares of ₹ 10 each (Fully called-up) for the non-payment of the allotment money of ₹ 6 per share including ₹ 2 as premium. Of these, 1,500 shares were reissued to A at ₹ 9 per share fully paid. Journalise the above transactions regarding the forfeiture and reissue in the books of M Ltd.
Ans : Capital Reserve ₹ 7,500
Q. 14 Mahan Limited forfeited the following Equity Shares of ₹ 10 each issued at a premium of ₹ 2 per share :-
(i) 700 shares issued to X for the non-payment of second and final call of ₹ 3 per share.
(ii) 500 shares issued to Z for the non-payment of first call of ₹ 2 per share and second and final call of ₹ 3 per share.
The forfeited shares were reissued to Y for ₹ 11 per share fully paid. Pass the necessary Journal entries to record the forfeiture and reissue of shares.
Ans : Capital Reserve ₹ 7,400
Q. 15 TAG Ltd. forfeited 400 shares of ₹ 10 each issued at a premium of ₹ 1 per share for the non-payment of allotment money of ₹ 4 per share (Including premium). The first and final call of ₹ 3 per share has not been made as yet. 50% of the forfeited shares were reissued at ₹ 8 per share fully paid-up. Pass the necessary entries for the forfeiture and reissue of shares.
Ans : Capital Reserve ₹ 400
