CBSE 2025, Set 1

Question

(b) Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following cases:
(i) Macil Ltd. forfeited 3,000 shares of ₹ 100 each issued at 20% premium for the non-payment of allotment money of ₹ 30 per share and first call of ₹ 40 per share (including premium ₹ 10). The second and final call of ₹ 30 per share (including premium ₹ 10) was not yet called. Out of these, 2,000 shares were reissued at ₹ 80 per share paid up for ₹ 90 per share.
(ii) Avian Ltd. forfeited 10,000 shares of ₹ 10 each on which the first call of ₹ 4 per share was not received and the second and final call of ₹ 1 per share was not yet called. Out of these, 4,000 shares were reissued to Ajay as fully paid up for ₹ 9 per share.

Edvaya · Accepted Answer

The correct answer is Subjective. **(i) Books of Macil Ltd. - Journal** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | | Share Capital A/c (3000 × 80 called up) ...Dr. Securities Premium A/c (3000 × 10 unpaid prem) ...Dr.     To Share Forfeiture A/c (Bal. fig, 3000 × 20)     To Calls in Arrears A/c (3000 × 70) (3000 shares forfeited for non-payment of allotment and first call) | | 2,40,000 30,000 | 60,000 2,10,000 | | | Bank A/c (2000 × 90) ...Dr.     To Share Capital A/c (2000 × 80)     To Securities Premium A/c (2000 × 10) (Reissue of 2,000 shares @ 90 per share ₹ 80 paid up) | | 1,80,000 | 1,60,000 20,000 | | | Share Forfeiture A/c (2000 × 20) ...Dr.     To Capital Reserve A/c (Balance in share forfeiture account transferred to capital reserve) | | 40,000 | 40,000 | **(ii) Books of Avian Ltd. - Journal** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | | Share Capital A/c (10000 × 9 called up) ...Dr.     To Share Forfeiture A/c (10000 × 5)     To Calls in Arrears A/c (10000 × 4) (10,000 shares forfeited for non-payment of first call) | | 90,000 | 50,000 40,000 | | | Bank A/c (4000 × 9) ...Dr. Share Forfeiture A/c (4000 × 1 discount) ...Dr.     To Share Capital A/c (4000 × 10) (Reissue of 4,000 shares @ 9 per share fully paid up) | | 36,000 4,000 | 40,000 | | | Share Forfeiture A/c ...Dr.     To Capital Reserve A/c (Amount transferred: [5 - 1] × 4000 = 16,000) | | 16,000 | 16,000 |

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Accountancy > Accounting For Companies > Accounting For Share Capital

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