CBSE 2025, Set 2

Question

(b) Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following cases:
(i) Beta Ltd. forfeited 2,000 shares of ₹ 10 each issued at 10% premium for the non-payment of allotment money of ₹ 4 per share (including premium ₹ 1) and first and final call of ₹ 3 per share. Out of these, 1,500 shares were reissued at ₹ 8 per share fully paid up.
(ii) Gamma Ltd. forfeited 5,000 shares of ₹ 10 each on which the first call of ₹ 2 per share was not received and the second and final call of ₹ 2 per share was not yet called. Out of these, 3,000 shares were reissued to Amit as fully paid up for ₹ 9 per share.

Edvaya · Accepted Answer

The correct answer is Subjective. **(i) Books of Beta Ltd. - Journal** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | | Share Capital A/c (2000 × 10 called up) ...Dr. Securities Premium A/c (2000 × 1 unpaid prem) ...Dr.     To Share Forfeiture A/c (Bal. fig, 2000 × 4 paid)     To Calls in Arrears A/c (2000 × 7 unpaid) (2000 shares forfeited for non-payment of allotment and call) | | 20,000 2,000 | 8,000 14,000 | | | Bank A/c (1500 × 8) ...Dr. Share Forfeiture A/c (1500 × 2 discount) ...Dr.     To Share Capital A/c (1500 × 10) (Reissue of 1,500 shares @ 8 per share) | | 12,000 3,000 | 15,000 | | | Share Forfeiture A/c ...Dr.     To Capital Reserve A/c (Balance transferred: [8000/2000 × 1500] - 3000 = 6000 - 3000) | | 3,000 | 3,000 | **(ii) Books of Gamma Ltd. - Journal** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | | Share Capital A/c (5000 × 8 called up) ...Dr.     To Share Forfeiture A/c (5000 × 6 paid)     To Calls in Arrears A/c (5000 × 2 unpaid) (5,000 shares forfeited for non-payment of first call) | | 40,000 | 30,000 10,000 | | | Bank A/c (3000 × 9) ...Dr. Share Forfeiture A/c (3000 × 1 discount) ...Dr.     To Share Capital A/c (3000 × 10) (Reissue of 3,000 shares @ 9 per share fully paid up) | | 27,000 3,000 | 30,000 | | | Share Forfeiture A/c ...Dr.     To Capital Reserve A/c (Amount transferred: [30000/5000 × 3000] - 3000 = 18000 - 3000) | | 15,000 | 15,000 |

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Accountancy > Accounting For Companies > Accounting For Share Capital

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