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Question
VT Ltd forfeited 200 shares of ₹ 10 each , issued at a premium of ₹ 5 per share , held by Mohan for non-payment of the final call of ₹ 3 per share . 100 out of these shares were reissued to Narendra at a discount of ₹ 4 per share . Journalise.
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Solution
Books of VT Limited
Journal
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
|
Share Capital A/c (200 × Rs 10) |
Dr. |
|
2,000 |
|
|
|
|
To Share Forfeiture A/c (200 × Rs 7) |
|
|
1,400 |
||
|
|
To Calls-in-Arrears A/c |
|
|
600 |
||
|
|
(200 shares of Rs 10 each forfeited for non-payment of Rs 3 each) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Bank A/c |
Dr. |
|
600 |
|
|
|
|
Share Forfeiture A/c (100 × Rs 4) |
Dr. |
|
400 |
|
|
|
|
To Share Capital A/c |
|
|
1,000 |
||
|
|
(100 shares of Rs 10 each re-issued at Rs 6 per share fully paid-up) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Share Forfeiture A/c |
Dr. |
|
300 |
|
|
|
|
To Capital Reserve A/c |
|
|
300 |
||
|
|
(Balance in share forfeiture of 100 shares transferred to capital reserve) |
|
|
|
||
Working Notes:
|
Share Forfeiture of re-issued shares |
||
|
Share Forfeiture Cr. |
Rs 7 |
per share |
|
Share Forfeiture Dr. |
Rs 4 |
per share |
|
Balance in Share Forfeiture after re-issue |
Rs 3 |
per share |
|
Capital Reserve |
= Balance in Share Forfeiture after re-issue (per share) × No. of shares re-issued |
|
|
= Re 3 × 100 |
|
|
= Rs 300 |
