Question

Ankit Ltd. issued 20,000 equity shares of 10 each at a premium of ₹ 2 per share, payable as:

On Application	:	₹ 3
On Allotment	:	₹ 5 (including premium)
On First Call	:	₹ 2
On Second and Final Call	:	₹ 2

Vijay was allotted 500 shares. Pass the necessary Journal entries relating to the forfeiture of shares in following cases.

Case I	Vijay did not pay allotment money and his shares were immediately forfeited.
Case II	Vijay did not pay allotment and first call, his shares were forfeited after first call.
Case III	Vijay failed to pay first call and his shares were forfeited immediately.
Case IV	Vijay failed to pay both the calls and his shares were forfeited.

Answer 1

Case I:

In the books of Ankit Ltd.
Journal

Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
	Share Capital A/c (500 × 6)	Dr.		3,000
	Securities Premium Reserve A/c (500 × 2)	Dr.		1,000
	To Share Forfeiture A/c (500 × 3)				1,500
	To Share Allotment A/c (500 × 5)				2,500
	(Being 500 shares forfeited for non-payment of allotment money)

Case II:

In the books of Ankit Ltd.
Journal

 

Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
	Share Capital A/c (500 × 8)	Dr.		4,000
	Securities Premium Reserve A/c (500 × 2)	Dr.		1,000
	To Share Forfeiture A/c (500 × 3)				1,500
	To Share Allotment A/c (500 × 5)				2,500
	To Share First Call A/c (500 × 2)				1,000
	(Being 500 shares forfeited for non-payment of allotment and first call)

Case III:

In the books of Ankit Ltd.
Journal

Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
	Share Capital A/c (500 × 8)	Dr.		4,000
	To Share Forfeiture A/c (500 × 6)				3,000
	To Share First Call A/c (500 × 2)				1,000
	(Being 500 shares forfeited for non-payment of first call)

Case IV:

In the books of Ankit Ltd.
Journal

Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
	Share Capital A/c (500 × 10)	Dr.		5,000
	To Share Forfeiture A/c (500 × 6)				3,000
	To Share First Call A/c (500 × 2)				1,000
	To Share Second and Final Call (500 × 2)				1,000
	(Being 500 shares forfeited for non-payment of first and second call)