Question

United Industries Ltd. issued shares of ₹ 10 each at 10% premium payable ₹ 3 on the application, ₹ 4 on the allotment (including premium), ₹ 2 on the first call, and ₹ 2 on the final call.

Journalise the transections relating to forfeiture of shares for the following situations:

1. Manoj who holds 250 shares failed to pay the second and final call and his shares were forfeited.
2. Manoj who holds 250 shares field to pay the allotment money and first call and second and final call and his shares were forfeited.
3. Manoj who holds 250 shares failed to pay the allotment money and first call money and his shares were forfeited after the first call.

Answer 1

Date	Particulars	L.F.	Debit Rs.	Credit Rs.
(a)	Manoj → 250 shares → fails → Final call Share Capital A/c (250 × Rs.10)   Dr.    To Share II & final call A/c (250 × Rs. 2)    To Forfeited shares A/c (250 × Rs. 8) [Forfeiture of shares made]		2,500	500 2,000
(b)	Manoj → fails → allotment & call Share Capital A/c (250 × Rs.10)   Dr. Securities Premium A/c (250 × Rs.1)   Dr.    To share allotment A/c (250 × Rs. 4)    To Share I call A/c (250 × Rs. 2)    To Share II & final call A/c (250 × Rs. 2)    To Forfeited shares A/c (250 × Rs. 3) [Foreiture of shares made]		2,500 250	1,000 500 500 750
(c)	Manoj → fails → allotment & I call called up capital Rs.8/ share Share Capital A/c (250 × Rs. 8)   Dr. Securities Premium (250 × Rs.1)   Dr.    To share Allotment A/c (250 × Rs. 4)    To share I call A/c (250 × Rs. 3)    To Forfeited share A/c (250 × Rs. 3) [Forfeiture of shares made]		2,000 250	1,000 500 750