TS Grewal solutions for Accountancy Double Entry Book Keeping Volume 1 and 2 [English] Class 12 chapter 8 - Accounting for Share Capital [Latest edition]

Which of the following statements is correct?

Subscribed capital is ______.

Which of the following statements is true for 'Reserve Capital'?

Which of the following is not a purpose for which the securities premium amount can be used?

A company can issue shares for consideration other than cash to

P. Promoters.

Q. Underwriters of issue.

R. Vendors of Machinery and other assets.

S. Employees.

Choose the correct option from the following:

As per the provisions of Companies Act, 2013 Securities Premium cannot be utilized for ______.

Akshita Ltd. issued fully paid shares of ₹ 5,00,000 in purchase consideration of net assets of ₹ 4,70,000. The balance of ₹ 30,000 will be ______ to ______ account.

Diksha Ltd. invited applications for issuing 1,00,000 equity shares of ₹ 10 each at a premium of 10%. The whole amount was payable on application. Applications were received for 3,00,000 equity shares. The company decided to allot the shares on pro rata basis to all the applicants. The amount refunded by the company was

That portion of the called-up capital which has been actually received from the shareholders is called ______.

Kewal Ltd. purchased sundry assets from Ganpati Ltd. for ₹ 28,60,000. The amount was paid by issuing fully paid shares of ₹ 100 each issued at a premium of 10%. The number of shares issued to Ganpati Ltd. were ______.

Sarita Ltd. forfeited 100 shares of ₹ 10 each, ₹ 8 called up issued at a premium of ₹ 2 per share to Ramesh for nonpayment of allotment money of ₹ 5 per share (including premium). The first and final call of ₹ 2 per share was not made. Out of these 70 shares were reissued to Ashok as ₹ 8 called up for ₹ 10 per share. The gain on reissue will be ______.

Which of the following statements is true?

Petromax Ltd. had invited applications for 80,000, 8% Preference Shares of ₹ 100 each. Applications were received for 1,20,000 shares and allotment was made on pro rata basis to all the applicants. Virat was allotted 1,600 shares, the number of shares he applied were

If fully paid shares of ₹ 8,00,000 are issued for purchase of business with net assets of ₹ 6,00,000, then the balance of ₹ 2,00,000 will be ______.

If fully paid shares of ₹ 10,00,000 are issued for purchase of business having net assets of ₹ 12,00,000, the balance of ₹ 2,00,000 will be ______.

When shares are forfeited, Share Capital Account is debited with ______.

Apple Orchards Ltd. issued 2,00,000 Equity Shares of ₹ 10 each at par payable ₹ 4 on application, ₹ 3 on allotment and balance as first and final call. It received ₹ 6,80,000 as Application Money.

The amount that it should receive on Allotment will be

The issue of minimum subscription does not arise in case of ______.

Which of the following statements is correct with respect to reissue of forfeited share?

A company forfeited 400 shares of ₹ 10 each, ₹ 8 per share called-up for non-payment of first call of ₹ 2 per share. On forfeiture of these shares, 'Share Capital' Account will be debited with ______.

Alfa Ltd. offered for public subscription 50,000 equity shares of ₹ 10 each at ₹ 110 per share. The entire amount was payable on application. Applications were received for 48,000 shares and allotment was made to all the applicants. The amount received on application will be

First call amount received in advance from the shareholders before it is actually called up by the directors is ______.

VL Ltd. offered for public subscription 90,000 equity shares of ₹ 10 each at a premium of 10%. The entire amount was payable on application. Applications were received for 1,00,000 shares, and allotment was made to all the applicants on a pro-rata basis. The amount received on application was:

If all the forfeited shares are reissued, the balance, if any, left in the Forfeited Shares Account is transferred to ______.

Super Seal Ltd. issued 1,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. Harleen, who was allotted 2,000 shares did not pay first and final call of ₹ 5 per share. On forfeiture of Harleen's shares, Securities Premium Account will be debited by

Apple Tree Ltd. issued 50,000 Equity Shares of ₹ 10 each at par for subscription payable ₹ 3 on Application, ₹ 4 on Allotment and ₹ 3 as First and Final call. Excess application money was to be adjusted against allotment and call.

It received applications for 1,45,000 Equity Shares. Applicants for 20,000 Equity Shares were refused allotment and remaining applicants were allotted shares on pro rata basis. The amount that the company credits to Calls-in-Advance Account will be

Ronak Ltd. has issued 10,000 Equity Shares of ₹ 10 each and it has called the total nominal (face) value. It has received the total amount, except the final call of ₹ 3 on 500 Equity Shares. These 500 Equity Shares will be shown as ______.

On an equity share of ₹ 20, the company called-up ₹ 16 and had received ₹ 14, Equity Share Capital Account will be credited by ______.

Green Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro rata basis. The amount payable on application is ₹ 2 per share. Mohan applied for 420 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from Mohan are

Aysha Ltd. forfeited 1,10,000 shares of ₹ 10 each issued at 20% premium for the non-payment of first call of ₹ 2 per share and final call of ₹ 3 per share, Share Forfeited Account will be credited with ______.

Raghav Ltd. forfeited 100 shares of ₹ 10 each issued at a premium of 20% for non-payment of first call of ₹ 3 per share and final call of ₹ 1 per share. The minimum price per share at which these shares can be reissued will be ______.

An equity share of ₹10 fully called up on which ₹ 6 has been paid was forfeited for the non-payment of the balance amount. At which of the following minimum price can it be reissued?

4,000 shares of ₹ 10 each were forfeited for non-payment of the second and final call money of ₹ 2 per share. The minimum amount that the company must collect at the time of reissue of these shares will be:

Forfeiture of shares leads to reduction of ______ Capital.

If 10,000 shares of ₹ 10 each were forfeited for non-payment of final call money of ₹ 3 per share and only 7,000 of these shares were reissued @ ₹ 11 per share as fully paid-up, then what is the minimum amount that company must collect at the time of reissue of the remaining 3,000 shares?

Lexa Ltd. issued 50,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows:

On application and allotment - ₹ 7 per share (including premium)

On first and final call - Balance

The issue was fully subscribed. All the money was duly received except the first and final call on 1,000 equity shares. These shares were forfeited. On forfeiture of these shares, Calls in Arrears Account will be

Pali Limited offered 2,00,000 shares of ₹ 10 each at a premium of ₹ 2 per share. Applications were received for 1,95,000 shares, which were duly allotted. The amount was payable as ₹ 3 on Application (including ₹ 1 premium), ₹ 6 on Allotment (including ₹ 1 premium) and balance on call. Manoj, holding 6,000 shares failed to pay allotment money and his shares were immediately forfeited. Out of the forfeited shares, 4,000 shares were re-issued @ ₹ 11 per share as fully paid up. The amount of Capital Reserve will be:

Super Star Ltd. issued 10,000 equity shares of ₹ 100 each at a premium of 20%. Mamta, who has been allotted 2,000 shares did not pay first and final call of ₹ 5 per share. On forfeiture of Mamta's shares, amount debited to Securities Premium Account will be

Minimum subscription for allotment of shares as per Securities and Exchange Board of India (SEBI) guidelines cannot be less than 90% of which of the following capital?

Anthony Ltd.issued 40,000 equity shares of ₹ 20 each payable as ₹ 5 on application; ₹ 7 on allotment and ₹ 8 on final call. Company received the due amount but one shareholder holding 250 shares did not pay the allotment money and another shareholder holding 150 shares failed to pay the amount due on final call. Total amount of Calls-in-Arrears is

Divya Ltd. forfeited 7,000 equity shares of ₹ 100 each issued at a premium of 10%, for non-payment of first and final call of ₹ 40 per share. The maximum amount of discount at which these shares can be reissued will be

Pawan Ltd. forfeited 1,000 equity shares of ₹ 10 per share for non-payment of first call of ₹ 2 per share. The final call of ₹ 2 per share was yet to be made. The maximum amount of discount at which these shares can be reissued will bе

Ronaldo Ltd. forfeited 300 equity shares of ₹10 each, fully called up, on which ₹5 per share (including premium of ₹1 per share) was received. It later reissued these shares at a discount.
The maximum discount per share, which the company could have given on their reissue would be:

A company forfeits 1,000 shares of ₹ 10 each. It had received ₹ 6,000 on these shares.What is the maximum discount that can be allowed on reissue of 400 shares?

Xyle Ltd. forfeited 700 shares of ₹ 10 each issued at a premium of 10% for non-payment of allotment money of ₹ 5 per share (including premium) and first and final call of ₹ 3 per share. On forfeiture of these shares, 'Share Forfeiture Account' will be credited with

Zinki Limited forfeited a share of ₹ 100 issued at a premium of 20% for non-payment of first call of ₹ 30 per share and final call of ₹ 10 per share. The minimum price at which this share can be reissued is ______.

M Ltd. forfeited 5,000 equity shares of ₹ 10 each issued at a premium of 10% for non-payment of final call of ₹ 2 per share. The minimum amount at which these shares can be reissued as fully paid up will be ______.

Pioneers Ltd. forfeited 160 shares of ₹ 10 each on which the holder had paid only the application money of ₹ 2 per share. Out of these, 40 shares were reissued to Gaurav as fully paid for ₹ 9 per share. The gain on reissue is ______.

Prafful Limited forfeited 15,000 shares of ₹ 20 each on which ₹ 8 (including ₹ 2 premium) was paid. Out of these 13,000 shares were re-issued @ ₹ 19 per share as fully paid up. Determine the amount of Share Forfeited balance.

On the forfeiture of 100 shares of ₹50 each, ₹2,500 were credited to share forfeited account. These shares were re-issued at ₹25 per share fully paid up. The amount credited to ‘Capital Reserve Account’ will be:

Mohit had applied for 900 shares and was allotted in the ratio 3 : 2. He had paid application money of ₹3 per share and couldn’t pay allotment money of ₹5 per share. First and Final call of ₹2 per share was not yet made by the company. His shares were forfeited. The following entry will be passed:

Here X, Y and Z are:

MIG Ltd. forfeited 40 shares of ₹ 10 each issued at a premium of 40% to Raj who had applied for 48 shares. After having paid ₹ 6 (including ₹ 2 premium), he did not pay allotment money of ₹ 2 (including ₹ 1 premium) and on his subsequent failure to pay the first call of ₹ 3 (including ₹ 1 premium) his shares were forfeited. The amount to be credited to Forfeited Shares Account is

A company forfeited 6,000 shares of ₹ 10 each, on which only application money of ₹ 3 has been paid. 4,000 of these shares were re-issued at ₹ 12 per share as fully paid up. Amount of Capital Reserve will be ______.

A share of ₹ 10 each, issued at ₹ 4 premium out of which ₹ 7 (including ₹ 1 premium) was called up and paid up. The uncalled Capital will be _______.

Offer of securities or invitation to subscribe securities to a select group of persons by a company (other than by way of public offer) is known as ______.

Shares issued as sweat equity can be

1. Issued at par.
2. Issued at discount.
3. Issued at a premium.

Which of the following is correct?

Attire Ltd. issued a prospectus inviting applications for 12,000 shares of ₹10 each payable ₹3 on application, ₹5 on allotment and balance on a call. Public had applied for a certain number of shares and application money was received. Which of the following application money, if received restricts the company to proceed with the allotment of shares, as per SEBI guidelines?

If 10,000 shares of ₹10 each were forfeited for non-payment of final call money of ₹3 per share and only 7,000 shares were re-issued @ ₹11 per share as fully paid up, then what is the amount of maximum possible discount that company can allow at the time of re-issue of the remaining 3,000 shares?

Vishant Ltd. invited applications for issuing 6,000 equity shares of ₹ 10 each at 10% premium. The issue was fully subscribed. The amount per share was payable as follows: 

On application - ₹ 3, on allotment - ₹ 3 (including premium), on first call - ₹ 3 and on final call - ₹ 2. Ashish the holder of 200 shares paid the entire money along with allotment. The total amount received on allotment was:

Kirloskar Ltd. issued 1,00,000 Equity Shares of ₹ 20 each at premium of ₹ 4 per share. Amount was payable ₹ 8 on application (including ₹ 2 per share as premium), ₹ 8 (including balance premium) on allotment and balance on First and Final Call. It received ₹ 8,00,000 as allotment money and ₹ 7,04,000 as First and Final Call. Shares Subscribed but not fully paid-up are

Paras Ltd. purchased assets of 7,50,000 from H Ltd. by issue of shares of ₹ 100 each at a premium of 25%. The number of shares to be issued by Pawan Ltd. as purchase consideration will be ______.

Assertion (A): A company, whether public or private, can have any number of shareholders.

Reason (R): A public limited company can have any number of shareholders but a private company can have maximum 100 shareholders excluding its past and present employees.

In the context of above two statements, which of the below options is correct?

Assertion (A): Calls-in-Advance is shown as an asset in the Balance Sheet.

Reason (R): Sometimes, shareholders pay a part or the total amount of the calls not yet made which is known as 'Calls-in-Arrears'.

In the context of above two statements, which of the below options is correct?

Assertion (A): Lotus Flowers Ltd. did not receive First & Final Call of ₹ 3 per share on 1,000 shares. These 1,000 Shares will be shown as 'Subscribed but not fully paid-up' under 'Subscribed Capital'.

Reason (R): The company has not received ₹ 3 per share on 1,000 Equity Shares. Hence, these shares are not fully paid-up.

In the context of above two statements, which of the below options is correct?

Assertion (A): Called-up Capital means share capital called-up by the company on the Subscribed Shares.

Reason (R): When a company issues shares amount of which is receivable in instalments, it calls upon the shareholders to pay the amount as called. Thus, it is the Called-up Capital.

In the context of above two statements, which of the below options is correct?

Assertion (A): Calls not yet made by the company but received in advance is shown as Paid-up Capital.

Reason (R): Calls not made but received are shown as Other Current Liabilities under Current liabilities.

In the context of above two statements, which of the below options is correct?

Assertion (A): Calls amount not received is always transferred to Calls-in-Arrears Account and shown under Shares Subscribed but not Fully Paid-up as deduction in the Note to Accounts on Share Capital.

Reason (R): Amount not received against Calls are Calls-in-Arrears but it is not always transferred to Calls-in-Arrears Account.

In the context of above two statements, which of the below options is correct?

Assertion (A): When the shares are forfeited, Share Capital Account is debited with the amount called-up and credited to (i) respective unpaid calls account, i.e., Calls-in-Arrears and (ii) Share Forfeiture Account with the amount already received on shares.

Reason (R): When the shares are forfeited, all entries relating to the shares forfeited, except those relating to securities premium, already recorded in accounting records must be reversed.

In the context of above two statements, which of the below options is correct?

Assertion (A): Reserve Capital and Capital Reserve are synonymous terms, i.e., they mean the same.

Reason (R): Reserve Capital is the capital which the company resolves to call on its winding up. Capital Reserve is a reserve to which capital profits are transferred.

In the context of above two statements, which of the below options is correct?

Assertion (A): Shares cannot be allotted unless minimum subscription is received.

Reason (R): SEBI has prescribed that a company issuing shares to public cannot allot shares unless it receives subscription of 90% of the shares issued.

In the context of above two statements, which of the below options is correct?

Assertion (A): Premium received on issue of shares is credited to Securities Premium Account.

Reason (R): Securities Premium Account is shown under the main head 'Reserves and Surplus'.

In the context of above two statements, which of the below options is correct?

Assertion (A): Securities Premium cannot be utilised for writing off loss on sale of a fixed asset.

Reason (R): Securities Premium may be applied only for the purposes mentioned in Section 52(2) of the Companies Act, 2013.

In the context of the above statements, which of the following is correct?

Assertion (A): Securities Premium can be used for issue of Partly Paid Bonus Shares.

Reason (R): The Companies Act, 2013 prescribes that Securities Premium Account can be used for issue of Fully paid-up or partly paid-up Bonus Shares.

In the context of above two statements, which of the below options is correct?

Assertion (A): Forfeited shares may be reissued by the company at a discount but the amount of discount cannot be more than the amount forfeited on the reissued shares.

Reason (R): It being sale of shares and not an issue of shares, the company can reissue them at any price.

In the context of above two statements, which of the below options is correct?

Assertion (A): Forfeited shares cannot be reissued by the company at a discount.

Reason (R): It being sale of shares and not an issue of shares, the company can reissue them at any price.

In the context of above two statements, which of the below options is correct?

Assertion (A): Forfeited shares cannot be issued at a price that is higher than its nominal (face) value.

Reason (R): Forfeited shares is not an issue of shares but sale of shares.

In the context of above two statements, which of the below options is correct?

Tulip Ltd. allotted 45,000 Equity shares of ₹ 10 each to the public. The first and final call of ₹ 2 per share was not received on 1,000 shares, which were forfeited by the company. Later, 600 of the forfeited shares were reissued at ₹ 7 fully paid-up. What is the Subscribed Capital of the company?

White Ltd. offered 20,000 shares of ₹ 10 each to public. Applications were received for 30,000 shares. The company made pro rata allotment in the ratio of 5 : 6 and the remaining applications were rejected and money refunded to the applicants.

Sunrise Ltd. purchased machinery of ₹ 11,50,000 from Indian Traders, payment was made as follows: ₹ 1,00,000 by cheque and balance by issue of equity shares of nominal (face) value of ₹ 100 each fully paid at an issue price of ₹ 105 each. Amount of securities premium will be

Blue Berry Ltd. had issued 50,000 Equity Shares of 20 each and had called-up ₹ 16 but received ₹ 10 per share, Equity Share Capital Account will be credited by ______.

Lemon Tree Ltd. issued 40,000 Equity Shares of ₹ 10 each at par payable ₹ 3 on Application; ₹ 4 on Allotment and Balance on First and Final Call. Applications were received for 1,10,000 shares. Applications for 20,000 shares were refused allotment and pro rata allotment was made to the remaining applicants. Amount received and refunded on allotment is

Reserve capital is not a part of ______

Sun Ltd. issued 50,000 Equity Shares of ₹ 10 each. Amount payable on application is ₹ 3 per share, on allotment ₹ 4 per share and balance as first and final call. Applications were received for 1,20,000 equity shares. Shares were allotted to all the applicants on pro rata basis. Raman had applied for 3,600 Equity Shares. The number of shares allotted to Raman and excess application money adjusted towards allotment money was:

Wintex Ltd. issued 6,00,000 shares for subscription against which it received applications for 10,00,000 shares. It made allotment on pro rata basis in the ratio of 2 : 3, i.e., two shares for every three shares applied. Application money refunded will be on

Fun Ltd. forfeited certain shares on which ₹ 7 were paid and final call of ₹ 3 was not paid. Out of these 6,000 shares were reissued at ₹ 8 per share as fully paid-up. Balance in Share Forfeited Account after reissue was ₹ 28,000. Number of shares forfeited were ___(i)___ shares and amount transferred to Capital Reserve was ₹ ___(ii)___.

On the basis of following account, choose the correct option:

On the basis of following extract of account, choose the correct option:

On the basis of following extract of account, choose the correct option:

Assertion: A company can reissue a forfeited share at an amount which is less than the amount not received on it.

Reason: A company can write off the net loss made on the reissue of a forfeited share from its capital reserve.

Which one of the following is correct?

Moonwalk Ltd. purchased business of Converse Ltd. for a consideration of ₹ 25,00,000. The consideration was paid by cheque of ₹ 4,00,000 and issue of shares of ₹ 100 each at a premium. On issue of shares, Share Capital Account was credited by ₹ 17,50,000.

State the premium at which shares were issued to Converse Ltd.

Woodcraft Ltd. purchased machinery for ₹ 90,000 from Moons Ltd. As per the agreement,the payment is to be made by issuing shares of ₹ 100 each. While recording this transaction, Share Capital Account was credited by ₹ 72,000.

State whether the shares were issued at Par or Premium and also calculate the number of shares issued to Moons Ltd.

Classic Ltd. invited applications for 1,00,000 shares of ₹ 10 each at premium of ₹ 5 each payable ₹ 10 on application and balance as allotment money. Ankur holding 1,000 shares did not pay the allotment money and his shares were forfeited.

Pass the necessary Journal entries.

Ikea Ltd. issued 5,00,000 shares of ₹ 10 each at a premium of 20% payable,

On Application ₹ 4 per share;

On Allotment ₹ 6 per share;

Balance as First and Final Call.

It received ₹ 16,00,000 as Application money.

You are required to pass the Journal entries for the above.

Answer the following questions:

1. The authorised capital of the company is
   1. ₹ 10,00,000.
   2. ₹ 9,90,000.
   3. ₹ 1,00,000.
   4. ₹ 99,45,000.
2. The issued capital of ABC Ltd. is
   1. ₹ 1,00,000.
   2. ₹ 99,000.
   3. ₹ 94,500.
   4. ₹ 10,00,000.
3. The amount of Calls-in-Arrears will be
   1. ₹ 27,000.
   2. ₹ 90,000.
   3. ₹ 2,97,000.
   4. Nil.
4. The 'Subscribed and fully paid-up capital' of ABC Ltd. will be
   1. ₹ 10,00,000.
   2. ₹ 9,00,000.
   3. ₹ 99,00,000.
   4. ₹ 98,73,000.
5. 'Subscribed but not fully paid-up capital' of ABC Ltd. will be
   1. ₹ 98,73,000.
   2. ₹ 8,73,000.
   3. ₹ 90,000.
   4. ₹ 63,000.
6. The amount of 'Share Capital' presented in the Balance Sheet of ABC Ltd. will be
   1. ₹ 9,63,000.
   2. ₹ 98,73,000.
   3. ₹ 9,90,000.
   4. ₹ 1,00,00,000.

Answer the following questions on the basis of the above information:

1. State the amount of excess application money refunded to the applicants.
   1. ₹ 50,000
   2. ₹ 1,00,000
   3. ₹ 1,20,000
   4. ₹ 1,50,000
2. State the excess application money adjusted in Shares Allotment Account.
   1. ₹ 1.50.000
   2. ₹ 2,00,000
   3. ₹ 2,50,000
   4. ₹ 3,00,000
3. State the amount received towards Shares Allotment Account.
   1. ₹ 2,00,000
   2. ₹ 2,50,000
   3. ₹ 3,00,000
   4. Nil.
4. State the amount forfeited at the time of forfeiture of Mohan's shares.
   1. ₹ 4,000
   2. ₹ 4,500
   3. ₹ 5,000
   4. ₹ 6,000
5. State the amount credited to 'Calls-in-Arrears'at the time of forfeiture of shares.
   1. ₹ 4,000
   2. ₹ 4,200
   3. ₹ 4,500
   4. ₹ 5,000
6. State the amount transferred to Capital Reserve.
   1. ₹ 2,000
   2. ₹ 2,500
   3. ₹ 3,000
   4. ₹ 3,500

Answer the following questions on the basis of the above information:

1. State the amount of Issued Capital.
   1. ₹ 2,00,000
   2. ₹ 30,000
   3. ₹ 2,70,000
   4. ₹ 2,50,000
2. On shares being forfeited, Securities Premium Account will be debited by
   1. Nil.
   2. ₹ 1,000.
   3. ₹ 2,000.
   4. ₹ 4,000.
3. State the amount of Subscribed and Fully Paid-up Capital.
   1. ₹ 1,60,000
   2. ₹ 1,00,000
   3. ₹ 70,000
   4. ₹ 2,00,000
4. State the amount of Subscribed but not Fully Paid-up Capital.
   1. ₹ 1,20,000
   2. ₹ 1,48,000
   3. ₹ 1,60,000
   4. ₹ 2,00,000
5. State the balance of 'Forfeited Shares Account'after reissue of shares.
   1. ₹ 6,000
   2. ₹ 7,500
   3. ₹ 8,000
   4. ₹ 5,000
6. State the amount of share capital which will bee shown in the Balance Sheet of the company.
   1. ₹ 2,20,000
   2. ₹ 2,25,000
   3. ₹ 2,29,500
   4. ₹ 2,25,500

During the year the company took over the business of Quipa Ltd. with Assets of Rs. 12,00,000/- and Liabilities of Rs. 7,30,000. Purchase consideration was paid in cash and by issue of equity shares at par. The entire transaction resulted in Capital reserve of Rs. 40,000.

1. What is the total face value of Shares issued by the Company during the year 2023-24.
   1. Rs. 10,00,000
   2. Rs. 6,00,000
   3. Rs. 9,50,000
   4. Rs. 11,20,000
2. Shares issued for cash during the year were issued at ______. (assuming they were issued together)?
   1. Rs. 10
   2. Rs. 8
   3. Rs. 12
   4. Rs. 11.20
3. On April 1, 2024, the company forfeited all the defaulting shares. What amount will appear in the Share Forfeiture account at the time of forfeiture?
   1. Rs. 40,000
   2. Rs. 50,000
   3. Rs. 10,000
   4. Rs. 60,000
4. What will be the number of Issued shares, as on April 1,2024, after the forfeiture of these shares?
   1. 5,45,000 shares
   2. 5,50,000 shares
   3. 4,45,000 shares
   4. 5,05,000 shares
5. If 2,000 of the forfeited shares were issued at Rs. 14 per share, what will be the amount of securities premium and Capital reserve respectively as on April 1, 2024?
   1. Rs, 3,20,000, Rs. 40,000
   2. Rs. 3,28,000, Rs. 56,000
   3. Rs. 3,28,000, Rs. 80,000
   4. Rs. 3,20,000, Rs. 80,000
6. What will be the amount in the "Subscribed and Fully paid" after the reissue of these 2000 shares?
   1. Rs. 54,50,000
   2. Rs. 55,00,000
   3. Rs. 54,70,000
   4. Rs. 54,80,000

Answer the following questions on the basis of the above information:

1. How much excess application money is adjusted to share allotment?
   1. ₹ 1,30,000
   2. ₹ 1,40,00
   3. ₹ 1,50,000
   4. ₹ 1,60,000
2. How much excess application money is refunded?
   1. ₹ 1,00,000
   2. ₹ 1,20,000
   3. ₹ 1,40,000
   4. ₹ 1,60,000
3. How much amount is received on allotment?
   1. ₹ 2,40,000
   2. ₹ 2,42,000
   3. ₹ 2,43,500
   4. ₹ 2,50,000
4. How much amount will be credited to 'Forfeited Shares Account' at the time of forfeiture of Rajat's Shares?
   1. ₹ 5,000
   2. ₹ 5,500
   3. ₹ 5,700
   4. ₹ 6,000
5. How much amount will be transferred to Capital Reserve?
   1. ₹ 8,500
   2. ₹ 9,000
   3. ₹ 9,500
   4. ₹ 9,750
6. What will be the balance in Forfeited Shares Account after reissue of shares?
   1. ₹ 2,500
   2. ₹ 2,650
   3. ₹ 2,750
   4. ₹ 2,850

International Trade Ltd. has authorised share capital of ₹ 1,00,00,000 divided into 1,00,000 Equity Shares of ₹ 100 each. It has existing issued and paid-up capital of ₹ 25,00,000. It further issued to public 25,000 Equity Shares at a premium of 20% for subscription payable as under:

The issue was fully subscribed and allotment was made to all the applicants. The company did not make the call during the year.

Show Share Capital in the Balance Sheet of the company.

Ganges Ltd. was registered with an authorised capital of ₹ 7,00,000 divided into equity shares of ₹ 10 each. It offered to public for subscription 50,000 equity shares. The amount was payable as follows:

On application : ₹ 4 per share

On allotment : ₹ 4 per share

On first and final call : Balance

The issue was fully subscribed. All the amounts were duly received except the first and final call money on 4,000 equity shares.

Show the Share Capital in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013. Also prepare 'Notes to Accounts' for the same.

Sunstar Ltd. has an authorised capital of ₹ 20,00,000 divided into equity shares of ₹ 10 each. The company invited applications for issuing of 60,000 shares. Applications were received for 58,000 shares.

All calls were made and were duly received except the final call of ₹ 3 per share on 2,000 shares. These shares were forfeited.

Present the 'Share Capital' in the Balance Sheet of the Company as per Schedule III, Part I of the Companies Act, 2013. Also prepare 'Notes to Accounts' for the same.

Jiva Ltd. is registered with capital of ₹ 50,00,000 divided into 50,000 equity shares of ₹ 100 each. The Company issued 25,000 equity shares for subscription. Subscription was received for 23,750 shares and all the due amount was duly received, except the first and final call of ₹ 20 per share on 600 shares. Show the 'Share Capital' in the Balance Sheet of the company.

Note: Problems related to Disclosure of Share Capital in company's Balance Sheet are also given under the head issue of shares at par and at premium.

Bharat Hotels Ltd. had authorised capital of ₹ 50,00,000 divided into 50,000 Equity Shares of ₹ 100 each. It issued 10,000 Equity Shares to public for subscription on the following terms:

Balance on First and Final call.

Shares were fully subscribed and amounts called were duly received. First and Final call was not yet made. Prepare Balance Sheet of the company showing Share Capital.

Altaur Ltd. was registered with an authorised Capital of ₹ 4,00,00,000 divided in 25,00,000 Equity Shares of ₹ 10 each and 1,50,000, 9% Preference Shares of ₹ 100 each. The company issued 8,00,000 Equity Shares for public subscription at 20% premium, payable ₹ 3 on the application; ₹ 7 on the allotment (including premium) and balance on a call. The public had applied for 10,00,000 shares. Excess Applications were sent letters of regret.

All the dues on allotment received except on 15,000 shares held by Sanju. Another shareholder Rocky paid his call dues along with allotment on his holding of 25,000 shares. You are required to prepare the Balance Sheet of the company as per Schedule III of Companies Act, 2013, showing Share Capital balance and also prepare Notes to Accounts.

Excel Ltd. was registered with capital of ₹ 5,00,000 divided into 50,000 Equity Shares of ₹ 10 each. It issued 20,000 Equity Shares to public for subscription. The shares were subscribed and calls were made and received except first and final call of ₹ 2 on 500 shares held by Varun.

Prepare Balance Sheet of the company showing Share Capital.

Pink Roses Ltd. was registered with capital of ₹ 25,00,000 divided into 25,000 Equity Shares of ₹ 100 each. It issued 15,000 Equity Shares to public for subscription. The shares were subscribed and calls were made and received except allotment money of ₹ 40 on 100 shares held by Parul and first and final call of ₹ 20 on 500 shares, including shares held by Parul.

Prepare Balance Sheet of the company showing Share Capital.

East India Hotels Ltd. was registered with authorised capital of ₹ 25,00,000 divided into 2,50,000 Equity Shares of ₹ 10 each. It issued 1,50,000 Equity Shares to public for subscription. The shares were subscribed and calls were made and received. First and final call of ₹ 3 was not made. Paresh holder of 5,000 shares paid the call money along with the allotment money.

Prepare Balance Sheet of the company showing Share Capital.

Shuchi Ltd. was registered with a capital of ₹ 5,00,000 in shares of ₹ 10 each and issued 20,000 such shares at a premium of ₹ 2 per share, payable as ₹ 2 per share on application, ₹ 5 per share on allotment (including premium) and ₹ 2 per share on first call made three months later. All the money payable on application and allotment was duly received but when the first call was made, one shareholder paid the entire balance on his holding of 300 shares and another shareholder holding 1,000 shares failed to pay the first call money.

Pass Journal entries to record the above transactions and show how they will be shown in the company's Balance Sheet.

Nidhi Ltd. issued 2,50,000 Equity Shares of ₹ 10 each to public at par for subscription, amount being payable as application money. Pass necessary Journal entries in the books of the company.

Authorised capital of ₹ 16,00,000 of Soumya Ltd. is divided into 1,60,000 Equity Shares of ₹ 10 each. Out of these shares, 80,000 Equity Shares were issued at par to public for subscription. The issue price is payable on application. All the shares were subscribed.

Pass necessary Journal entries in the books of the company.

Vivan Ltd. invited applications for 10,000 shares of ₹ 100 each payable as follows:

₹ 30 on application, ₹ 30 on allotment and balance on first and final call.

All the shares were applied and allotted and the money was duly received.

You are required to Journalise these transactions and show share capital in the Balance Sheet.

National Textiles Ltd. was registered with the authorised capital of ₹ 3,00,000 divided into 3,000 shares of ₹ 100 each, which were offered to the public. Amount payable as ₹ 30 per share on application, ₹ 40 per share on allotment and ₹ 30 per share on first and final call. These shares were fully subscribed and all money was duly received.

Prepare Cash Book, Journal and Balance Sheet showing Share Capital.

Modern Dairies Ltd. was registered with an authorised capital of ₹ 10,00,000 divided into 7,500 Equity Shares of ₹ 100 each and 2,500 Preference Shares of ₹ 100 each. 1,000 Equity Shares and 500; 9% Preference Shares were offered to public on the following terms - Equity Shares payable ₹ 10 on application, ₹ 40 on allotment and the balance in two calls of ₹ 25 each. Preference Shares are payable ₹ 25 on application, ₹ 25 on allotment and ₹ 50 on first and final call. All the shares were applied for and allotted. Amount due was duly received.

You are required to prepare Cash Book, pass necessary Journal entries and show share capital in the Balance Sheet.

Premio Ltd. issued 50,000 Equity Shares of ₹ 100 each at a premium of ₹ 50 per share, payable as follows:

₹ 100 per share on Application; and Balance on Allotment.

The issue was subscribed and shares were issued to the applicants. Pass the necessary Journal entries.

Bharat Ltd. was incorporated with a capital of ₹ 2,00,000 divided into shares of ₹ 10 each. 2,000 shares were offered for subscription and out of these, 1,800 shares were applied for and allotted. ₹ 3 per share (including ₹ 1 premium) was payable on application, ₹ 4 per share (including ₹ 1 premium) on allotment, ₹ 2 per share on first call and ₹ 3 per share on final call. All the money was received. Give necessary Journal entries and show share capital in the Balance Sheet.

Authorized capital of Suhani Ltd. is ₹ 45,00,000 divided into 30,000 shares of ₹ 150 each. Out of these company issued 15,000 shares of ₹ 150 each at a premium of ₹ 10 per share. The amount was payable as follows:

₹ 50 per share on application, ₹ 40 per share on allotment (including premium), ₹ 30 per share on first call and balance on final call. Public applied for 14,000 shares.  All the money was duly received.

Prepare an extract of Balance Sheet of Suhani Ltd . as per Schedule III, Part I of the Companies Act, 2013, disclosing the above information. Also prepare 'Notes to Accounts ' for the same.

Bright Ltd. issued 80,000 Equity Shares of ₹ 10 each against which it received applications for 1,20,000 Shares. Application Money was ₹ 4, Allotment Money and First and Final Call was of ₹ 3 each.

Pass the Journal entry for allotment of shares in each of the following cases:

Case 1: Excess Applications were refused allotment.

Case 2: Pro rata allotment is made.

Case 3: Applications for 20,000 Shares were refused allotment and pro rata allotment was made to remaining.

Case 4: Applications for 10,000 Shares were refused allotment, applications for 10,000 shares were allotted the shares applied and pro rata allotment was made to the remaining.

Faber Ltd. invited applications for 70,000 equity shares of ₹ 100 each. The application money received @ ₹ 30 per share was ₹ 27,00,000. Name the kind of subscription. List the three alternatives for allotting these shares.

Sangam Marbles Ltd. invited applications for 20,000 Equity Shares of ₹ 100 each issued at par payable on application. The issue was oversubscribed by 5,000 shares and allotment was made on pro rata basis. Pass necessary Journal entries.

[Hint: Shares applied are 25,000 (20,000 + 5,000.]

Seiko Watches Ltd. invited applications for 50,000 shares of ₹ 10 each payable ₹ 3 on application, ₹ 4 on allotment and balance on first and final call. Applications were received for 60,000 shares. Applications were accepted for 50,000 shares and remaining applications were rejected. All calls were made and received except First and Final call on 500 shares.

Pass the Journal entries in the books of Seiko Watches Ltd.

Tiny Toys Ltd. issued ₹ 10,00,000 shares of ₹ 100 each at a premium of ₹ 20 for subscription payable as:

₹ 10 per share on application,

₹ 40 per share and 10 premium on allotment, and

₹ 50 per share and ₹ 10 premium on final payment

Issue was oversubscribed receiving applications for 13,000 shares. Applicants for 11,000 shares were allotted 10,000 shares and applicants for 2,000 shares were sent letters of regret. All the money due on allotment and final call was duly received. Pass necessary entries in the company's books to record the above transactions. Also, show share capital in the company's Balance Sheet on completion of the above transactions.

Sony Media Ltd.issued 50,000 shares  of ₹ 10 each payable  ₹ 3 on application , ₹ 4 on allotment and balance on first and final call . Applications were received for 1,00,000 shares and allotment was made as follows :
(i) Applicants for 60,000 shares were allotted 30,000 shares,
(ii) Applicants for 40,000 shares were allotted 20,000 shares,
Anupam to whom 1,000 shares were allotted from category
(i) failed to pay the allotment money.
Pass journal entries up to allotment .

Sugandh Ltd. issued 60,000 shares of ₹ 10 each at a premium of ₹ 2 per share payable as ₹ 3 on application, ₹ 5 (including premium) on allotment and the balance on first and final call. Applications were received for 92,000 shares. The Directors resolved to allot as

Mohan, who had applied for 800 shares in Category

(i) and Sohan, who was allotted 600 shares in Category

(ii) failed to pay the allotment money. Calculate amount received on allotment.

Printkit Limited invited applications for issue of 80,000 equity shares of ₹ 10 each. The amount was payable as follows:

On Application - ₹ 3 per share

On Allotment - ₹ 2 per share

On First and Final call - Balance

Applications for 1,50,000 shares were received. Applications for 10,000 shares were rejected and pro rata allotment was made to the remaining applicants on the following basis:

Category A - Applicants for 80,000 shares were allotted 40,000 shares.

Category B - Applicants for 60,000 shares were allotted 40,000 shares.

Excess money received on application was adjusted towards amount due on allotment and first and final call. All the amounts due on allotment and first and final call were duly received.

Pass necessary Journal entries in the books of Printkit Limited.

Eastern Company Limited, having an authorised capital of ₹ 10,00,000 divided into shares of ₹ 10 each, issued 50,000 shares at a premium of ₹ 3 per share payable as follows:

Applications were received for 60,000 shares and the directors allotted the shares as follows:

1. Applicants for 40,000 shares received in full.
2. Applicants for 15,000 shares received an allotment of 8,000 shares.
3. Applicants for 5,000 shares received 2,000 shares on allotment, excess money being returned.

All amounts due on allotment were received. The first call was made and the money was received except on 100 shares. Give journal and cash book entries to record these transactions of the company. Also prepare the Balance Sheet of the company.

A-one Product Ltd. is registered with authorised capital of ₹ 10,00,000 divided into 50,000 equity shares of ₹ 20 each. It issued 25,000 Equity Shares for subscription at premium of ₹ 2 per share, issue price being payable along with application. It received ₹ 5,17,000 towards application money. You are required to prepare the Balance Sheet showing Share Capital.

Home Products Ltd. is registered with authorised capital of ₹ 10,00,000 divided into 1,00,000 equity shares of ₹ 10 each. It issued 70,000 Equity Shares for subscription at premium of ₹ 2 per share, payable ₹ 3 on application, ₹ 5 on allotment and balance on first and final call. It received subscription for 62,500 shares.

You are required to pass the necessary Journal entries.

[Hint: Minimum subscription is not received.]

Quality Stationers Ltd. registered with authorised capital of ₹ 20,00,000 divided into 1,00,000 equity shares of ₹ 20 each. 50,000 Equity Shares were issued for subscription at par, issue price being payable along with application. It received application money of ₹ 4,40,000.

You are required to pass the necessary Journal entries and show share capital in the Balance Sheet of the company.

Pure Products Ltd. is registered with authorised capital of ₹ 10,00,000 divided into 1,00,000 equity shares of ₹ 10 each. It issued 70,000 Equity Shares for subscription at premium of ₹ 2 per share, payable ₹ 3 on application, ₹ 5 on allotment and balance on first and final call. It received application money amounting to ₹ 1,89,000.

You are required to:

1. Determine whether the company should allot shares; and
2. If yes, pass the necessary Journal entries assuming that the company has received due amount on allotment and call.

Blue Chip Ltd. was registered on 1st January, 2025 with a capital of ₹ 10,00,000 divided into 1,00,000 shares of ₹ 10 each. The company issued 42,000 shares of which 40,000 shares were subscribed by public and ₹ 1 per share was received with application. On 1st February, 2025, these shares were allotted and ₹ 2 per share was duly received on 28th February, 2025 as allotment money. First call of ₹ 3 per share was made on 1st March, 2025 and the call money on all shares with the exception of 100 shares was received. The final call of ₹ 4 per share was made on 1st June, 2025 and the amount due, with the exception of 400 shares, was received by 30th June, 2025.

Pass necessary Journal and Cash Book entries and prepare the Balance Sheet as at 30th June, 2025.

The authorised capital of Sarang Ltd.is ₹ 1,20,00,000 divided into 12,00,000 shares of ₹ 10 each. Out of these, company issued 8,00,000 shares of ₹ 10 each at a premium of 20%. The amount per share was payable as follows:

Public applied for 7,80,000 shares. All the money was duly received.

Prepare an extract of Balance Sheet of Sarang Ltd. as per Schedule III, Part I of the Companies Act, 2013, disclosing the above information. Also prepare 'Notes to Accounts' for the same.

Climax Ltd. made the second and final call on its 50,000 Equity Shares @ ₹ 2 per share on 1st January, 2026. The entire amount was received on 15th January, 2026 except on 100 shares allotted to Venkat. Pass necessary Journal entries for the call money due and received by opening Calls-in-Arrears Account.

Avon Ltd. issued for subscription 10,000 shares of ₹ 25 each, payable ₹ 5 per share on application, ₹ 10 per share on allotment (including ₹ 5 per share as premium), ₹ 5 per share as first call on the shares and the balance in two equal amounts at intervals of three months. All the shares were applied and allotted. Due amount was received except the second call and final call on 200 and 400 shares respectively.

Pass the entries in the company's Journal, Cash Book and the Ledger. Also show the company's Balance Sheet on completion of the above transactions.

Usha Ltd. was formed with a capital of ₹ 10,00,000 divided into shares of ₹ 100 each. It offered 90% shares to public for subscription. The amount per share was payable as 40% on application, 20% on allotment and the balance on first and final call. The applicants paid ₹ 3,60,000 on application and ₹ 1,69,000 on allotment. The call has not yet been made. Calculate:

1. Authorised Capital,
2. Issued Capital,
3. Subscribed Capital,
4. Called-up Capital,
5. Paid-up Capital, and
6. Calls-in-Arrears

2,000 Equity Shares of ₹ 10 each were issued to Moon Limited from whom assets of ₹ 25,000 were acquired. Pass Journal entry.

'Amrit Dhara Ltd.' issued 800 Equity Shares of ₹ 100 each at a premium of 25% as fully paid-up in consideration of the purchase of plant and machinery of ₹ 1,00,000.
Pass entries in company's Journal.

Vani Ltd. purchased furniture costing ₹ 2,20,000 from C.D Ltd. The payment was to be made by issue of 9% Preference Shares of ₹ 100 each at a premium of ₹ 10 per share. Pass necessary Journal entries in the books of Vani Ltd.

Goodluck Ltd purchased  machinery costing ₹ 10,00,000 from Fair Deals Ltd. The company paid the price by issue of Equity Shares of ₹ 10 each at a premium of 25%.
Pass necessary Journal entries for the above transactions in the books of Goodluck Ltd.

Rajan Ltd . purchased assets from Geeta & Co . for ₹ 5,00,000. A sum of ₹ 1,00,000 was paid by means of a bank draft and for the balance due Rajan Ltd. issued equity Shares of ₹ 10 each at a premium of 25%. journalise the above transactions in the books of the company.

Sona Ltd.  purchased machinery costing ₹ 17,00,000 from Mona Ltd. Sona Ltd. paid 20% of the amount by cheque and for the balance amount issued Equity Shares of ₹ 100 each at a premium of 25% . Pass necessary Journal entries for the above transactions in the books of Sona Ltd .Show your working notes clearly.

Surya Ltd. took over assets of ₹ 40,00,000 and liabilities of ₹ 7,50,000 of Moon Ltd. Surya Ltd. paid the purchase consideration by issuing 17,600; 10% Preference Shares of ₹ 100 each at a premium of 25% and ₹ 12,00,000 by Bank Draft. Calculate purchase consideration and pass the necessary Journal entries in the book of Surya Ltd.

Random Ltd. took over running business of Mature Ltd. comprising of Assets of ₹ 45,00,000 and Liabilities of ₹ 6,40,000 for a purchase consideration of ₹ 36,00,000. The amount was settled by bank draft of ₹ 1,50,000 and balance by issuing 12% preference shares of ₹ 100 each at 15% premium. Pass entries in the books of Random Ltd.

Bhushan Lamps Ltd. issued 30,000 Fully Paid-up shares of ₹ 100 each for purchase of the following assets and liabilities from Sharma & Co.

You are required to pass necessary Journal entries.

Mangla Cortubi Ltd. took over a unit of Mangla Tubes Ltd. consisting of Machinery - ₹ 40,00,000, Tools and Dies - ₹ 10,00,000 and Liabilities of ₹ 25,00,000 for a consideration of ₹ 20,00,000. The consideration was paid by issuing Equity Shares of ₹ 10 each at a premium of ₹ 5.

You are required to pass the Journal entries in the books of Mangla Cortubi Ltd.

Sandesh Ltd. took over the assets of ₹ 7,00,000 and liabilities of   ₹ 2,00,000 from Sanchar Ltd. for a purchase consideration of  ₹ 4,59,500.  ₹ 8,500 were paid by accepting a draft in favour of Sanchar Ltd. payable after three months and the balance was paid by issue of equity shares of  ₹ 10 each at a premium of 10% in favour of Sanchar Ltd.
Pass necessary journal entries for the above transactions in the books of Sandesh Ltd.

Geetika Ltd. purchased running business from Sanchar Ltd. for ₹ 15,00,000 payable 10% by cheque and the balance by the issue of fully paid Equity Shares of ₹ 100 each at a premium of 20%. The assets and liabilities consisted of the following:

Pass the necessary Journal entries in the books of Geetika Ltd.

Light Lamps Ltd. issued 50,000 shares of ₹ 10 each as fully paid-up to the promoters for their services to set-up the company. It also issued 5,000 shares of ₹ 10 each credited as Fully Paid-up to the underwriters of shares for their services. Journalise these transactions.

Pass entries for forfeiture and re-issue in the following case.

Vikram Ltd. forfeited 5,000 shares of Rahul, who had applied for 6,000 shares for non-payment of allotment money of ₹ 5 per share and first and final call of ₹ 2 per share. Only application money of ₹ 3 was paid by him. Out of these 3,000 shares were re-issued @ ₹ 12 per share as fully paid.

Pass necessary journal entries for the forfeiture and reissue of forfeited shares in the following case:

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.

Show the forfeiture and reissue entries under the following case:

Teer Ltd. forfeited 3,000 shares of ₹ 10 each for non-payment of final call of ₹ 2 per share. These shares were reissued for ₹ 10 each as fully paid-up.

Show the forfeiture and reissue entries under the following case:

Alliance Ltd. forfeited 2,000 shares of ₹ 10 each for non-payment of final call of ₹ 2 per share. These forfeited shares were reissued for ₹ 10 each as ₹ 7 paid-up.

Sangita Limited invited applications for issuing 60,000 shares of ₹ 10 each at par. The amount was payable as follows: on application ₹ 2 per share; on allotment ₹ 3 per share; on first and final call ₹ 5 per share. Applications were received for 92,000 shares.

Allotment was made on the following basis: (a) to applicants for 40,000 shares: full; (b) to applicants for 50,000 shares: 40%; (c) to applicants for 2,000 shares: nil.

₹ 1,08,000 was realised on account of allotment (excluding the amount carried from application money) and ₹ 2,50,000 on account of call. The directors decided to forfeit shares of those applicants to whom full allotment was made and on which allotment money was overdue.

Pass Journal entries in the books of Sangita Limited to record the above transactions.

[Hints:

1. No. of shares forfeited = `"Allotment money not received"/"Allotment money per share"`

= `(1,80,000 - 60,000 ("Surplus Application Money") - 1,08,000)/3`

= 4,000 shares.

2. Journal Entry for forfeiture of shares:

Dr. Share Capital A/c - ₹ 40,000;
Cr. Shares Allotment A/c - ₹ 12,000; Shares First and Final Call A/c - ₹ 20,000 and Forfeited Shares A/c - ₹ 8,000.]

Alpha Ltd. issued 20,000 Equity Shares of ₹ 10 each at par payable: On application ₹ 2 per share; on allotment ₹ 3 per share; on first call ₹ 3 per share; on second and final call ₹ 2 per share.

Ganesh was allotted 100 shares. Pass necessary Journal entry relating to the forfeiture of shares in each of the following alternative cases:

Case 1. If Ganesh did not pay the allotment money and his shares were forfeited.

Case 2. If Ganesh did not pay allotment money and on his subsequent failure to pay the first call, his shares were forfeited.

Case 3. If Ganesh did not pay the first call and on his subsequent failure to pay the second and final call, his shares were forfeited.

Chand Ltd. invited applications for issuing 1,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. The amount per share was payable as follows: ₹ 4 (including premium) on application, ₹ 5 on allotment and balance on first and final call. Applications were received for 1,80,000 shares of which applications for 30,000 shares were rejected and remaining applicants were allotted shares on pro-rata basis. Mansi holding 5,000 shares failed to pay first and final call money and her shares were forfeited.

Pass necessary Journal entries for the above transactions in the books of the company. 

Sona Ltd. invited applications for issuing 60,000 equity shares of ₹ 50 each. The amount was payable as follows:

Applications for 90,000 shares were received. Applications for 10,000 shares were rejected and application money refunded. Shares were allotted on pro rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Rahul, to whom 600 shares were allotted, failed to pay the allotment money and his shares were forfeited immediately. Afterwards, the first and final call was made. Mona, to whom 1,000 shares were allotted, failed to pay the first and final call. Her shares were also forfeited.

Pass necessary Journal entries in the books of Sona Ltd. for the above transactions.

Ratan Ltd. forfeited 3,000 shares of ₹ 10 each (issued at ₹ 2 premium) for non-payment of first call of ₹ 2 per share. Final call of ₹ 3 per share was not yet made. Out of these, 2,000 shares were reissued at ₹ 10 per share as fully paid. Pass entries for forfeiture and reissue of shares.

Pass necessary journal entries for the forfeiture and reissue of forfeited shares in the following case:

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 a premium of ₹ 10) was not yet called. Out of these, 2,000 shares were reissued at ₹ 80 per share paid-up for ₹ 90 per share.

Ajanta Ltd. issued a prospectus inviting applications for issuing 5,00,000 equity shares of ₹ 10 each issued at a premium of 10%. The amount was payable as follows:

Applications were received for 6,00,000 shares and pro rata allotment was made to all applicants. Excess money received on application was adjusted towards sums due on allotment. All amounts were duly received except from Sumit, who was the holder of 1,000 shares, and failed to pay the allotment and first and final call. His shares were forfeited.

Pass Journal entries for the above transactions in the books of Ajanta Ltd. Open Calls-in-Arrears Account wherever necessary.

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

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

Vani Limited invited applications for issuing 1,00,000 equity shares of ₹ 10 each at a premium of 10%. The amounts were payable as under: On Application and Allotment - ₹ 4 per share (including premium ₹ 1)

On first call -₹ 4 per share

On second and final call - ₹ 3 per share

Applications for1,50,000 shares were received and pro-rata allotment was made to all the applicants. Excess application money was adjusted towards sums due on calls. Parth, a shareholder who had applied for 600 shares did not pay the first call. His shares were forfeited. The second and final call was not yet made. Half of the forfeited shares were reissued at ₹ 8 per share fully paid-up.

Journalise the above transactions in the books of Vani Limited by opening calls in arrears and calls in advance account wherever necessary.

Radhika Ltd. invited applications for issuing 40,000 equity shares of ₹ 100 each at a premium of ₹ 50 per share. The amount was payable as follows:

Applications for 39,000 shares were received. Allotment was made in full to all the applicants. Dinu, to whom 100 shares were allotted, failed to pay the first call money. His shares were immediately forfeited. The forfeited shares were reissued thereafter at ₹ 70 per share fully paid-up. The second and final call was not yet made.

Pass necessary Journal entries for the above transactions in the books of Radhika Ltd.

[Hint: Gain on Reissue = Amount forfeited - Discount on Reissue = ₹ 3,000 − ₹ 3,000 = NIL.]

Determine the maximum permissible discount and minimum reissue price that a company can allow at the time of reissue of forfeited shares in the following cases:

1. A share of ₹ 10 originally issued at par on which application and allotment money of ₹ 5 was received.
2. A share of ₹ 10 originally issued at a premium of ₹ 1 on which application and allotment money (including premium) of ₹ 5 was received.
3. A share of ₹ 10 originally issued at a premium of ₹ 1 on which application and allotment money (excluding premium) of ₹ 5 was received.

Star Ltd. issued 10,000 shares of ₹ 10 each, payable as ₹ 4 on application, ₹ 3 on allotment, ₹ 2 on first call and balance on second and final call.

500 shares were forfeited. Calculate the 'Maximum Permissible Discount' and 'Minimum Reissue Price' on reissue in each of the following cases, if the reissued shares are fully paid-up:

Case 1. If shares were forfeited for non-payment of Second and Final Call.

Case 2. If shares were forfeited for non-payment of First Call and Second and Final Call.

Case 3. If shares were forfeited for non-payment of Allotment, First Call and Second and Final Call.

Case 4. If shares were forfeited for non-payment of Allotment and First Call. Second and Final Call is not yet made.

Computer Mart Ltd. forfeited 1,000 Equity Shares of ₹ 50 each issued at 10% premium on which allotment money of ₹ 15 per equity share (including premium) and first call of ₹ 15 per share were not received, the second and final call of ₹ 10 per equity share was not yet called.

Calculate 'Discount Allowed or Premium Received' and 'Amount transferred to Capital Reserve' on reissue of shares as fully paid-up in each of the following cases:

Case 1. If these shares were reissued as ₹ 40 paid-up for ₹ 45 per share.

Case 2. If these shares were reissued as ₹ 40 paid-up for ₹ 40 per share.

Case 3. If these shares were reissued as ₹ 40 paid-up for ₹ 35 per share.

Case 4. If these shares were reissued as ₹ 40 paid-up for ₹ 25 per share.

Case 5. If these shares were reissued at ₹ 35 per share as fully paid-up.

Dell Ltd. forfeited 2,000 Equity Shares of ₹ 50 each issued at 10% premium on which allotment money of ₹ 15 per equity share (including premium) and first call of ₹ 15 per share were not received, the second and final call of ₹ 10 per equity share was not yet called.

Calculate 'Discount Allowed or Premium Received' and 'Amount transferred to Capital Reserve' on reissue of shares as fully paid-up in each of the following cases:

Case 1. If 200 of these shares were reissued as ₹ 40 paid-up for ₹ 45 per share.

Case 2. If 200 of these shares were reissued as ₹ 40 paid-up for ₹ 40 per share.

Case 3. If 200 of these shares were reissued as ₹ 40 paid-up for ₹ 35 per share.

Case 4. If 200 of these shares were reissued as ₹ 40 paid-up for ₹ 25 per share.

Case 5. If 200 of these shares were reissued at ₹ 35 per share as fully paid-up.

What amount of gain on reissue will be transferred to Capital Reserve under following situation?

3,000 shares of ₹ 10 each of Rakesh were forfeited by crediting ₹ 5,000 to Forfeited Shares Account. Out of these, 1,800 shares were reissued to Mohan for ₹ 9 per share as fully paid-up.

What amount of gain on reissue will be transferred to Capital Reserve under following situation?

Z Ltd. forfeited 20 shares of 100 each (₹ 60 called-up) issued at par to Shiv on which he paid ₹ 20 per share. Out of these, ₹ 15 shares were reissued to Rajesh as ₹ 60 paid-up for ₹ 45 per share.

A company forfeited 4,000 shares of ₹ 10 each fully called-up, on which application money of ₹ 3 each has been paid. Out of these, 2,000 shares were reissued as fully paid-up for ₹ 18,000.

Pass necessary Journal entries for above transactions.

Alfa Ltd. forfeited 900 Equity Shares of ₹ 100 each for the non-payment of allotment money of ₹ 30 per share and the first call of ₹ 20 per share. The second and final call of ₹ 25 per share has not been made. The forfeited shares were reissued for ₹ 90 per share, ₹ 75 paid-up.

Journalise the above.

Max Ltd. forfeited 500 shares of ₹ 100 each for non-payment of first call of ₹ 20 per share and final call of ₹ 25 per share. 250 of these shares were reissued at ₹ 50 per share fully paid-up.

Pass the necessary Journal entries in the books of Max Ltd. for forfeiture and reissue of shares. Also, prepare the Share Forfeiture Account.

On 1st May, 2026, Moneyplus Ltd. forfeited 200 shares of ₹ 20 each, ₹ 15 per share called-up, on which ₹ 10 per share has been paid by A, the amount of the first call of ₹ 5 per share being unpaid. Ten days later, the Directors reissued the forfeited shares to B credited as ₹ 15 per share paid-up, for a payment of ₹ 10 per share.

Give Journal entries in the company's books to record the forfeited shares and their reissue.

The Directors of Khyati Ltd. resolved on 1st May, 2025 that 2,000 Equity Shares of ₹ 10 each, ₹ 7.50 paid be forfeited for non-payment of final call of ₹ 2.50. On 10th June, 2025, 1,800 of these shares were reissued for ₹ 6 per share. Give necessary Journal entries.

Sunshine Ltd. issued 20,000 shares of ₹ 100 each payable ₹ 25 per share on application , ₹ 25 per share on allotment and the balance in two calls of  ₹ 25 each. The company did not make the final call of ₹ 25 per share. All the money was duly received with the exception of the amount due on the first call on 400 shares held by Mr. Modi. The Board of Directors forfeited these shares and subsequently reissued them @ ₹ 75 per share paid-up for a sum of ₹ 28,000.
Journalise the above transactions and prepare Share Capital Account.

Mahira Ltd. forfeited 800 shares of ₹ 10 each on which first call of ₹ 3 per share was not received. The second and final call of ₹ 2 per share was not yet called. Out of these, 400 shares were reissued as 8 paid-up for ₹ 7 per share.

Pass the necessary Journal entries.

The Hindustan Manufacturing Ltd. had a total subscribed capital of ₹ 10,00,000 in Equity Shares of ₹ 10 each of which ₹ 7.50 were called-up. A final call of ₹ 2.50 was made and all amount paid except two calls of ₹ 2.50 each in respect  of 100 shares held by D . These shares were forfeited and reissued at ₹ 8 per share . 
Pass necessary journal entries (including that of cash) to record the transactions of final call , forfeiture of shares and reissue of forfeited shares . Also, prepare the Balance Sheet of the  company. 

Star Ltd. forfeited 500 Equity Shares of ₹ 100 each for non-payment of first call of ₹ 30 per share . The final call of ₹ 10 per share was not yet made. Out of these, 60% shares were reissued for ₹ 39,000 fully paid. journalise the forfeiture and reissue of shares.

Give necessary journal entries:

The Directors of Devendra Ltd. resolved on 1^st January 2010 that Equity Shares of ₹ 10 each, ₹ 8 paid-up be forfeited for non-payment of final call of ₹ 2. On 1^st February, 60 of these shares were reissued @ ₹ 7 per share as fully paid-up.

Give necessary Journal entries:

Virender Limited forfeited 20 shares of ₹ 100 each (₹ 60 called-up) issued at par to Mukesh on which he had paid ₹ 20 per share. Out of these, 15 shares were reissued to Sanjeev as ₹ 60 paid-up for ₹ 45 per share.

Show the forfeiture and reissue entries under the following case:

KBC Ltd. forfeited 300 shares of ₹ 10 each, ₹ 8 called-up held by Amit for non-payment of second call money of ₹ 3 per share. These shares were reissued to Zoly for ₹ 10 per share as fully paid-up.

Show the forfeiture and reissue entries under the following case:

KK Ltd. forfeited 400 shares of ₹ 10 each, fully called-up, held by Bhawna for non-payment of final call money of ₹ 4 per share. These shares were reissued to Tarun at ₹ 12 per share as fully paid-up.

Show the forfeiture and reissue entries under the following case:

Light Ltd. forfeited 250 shares of ₹ 10 each, fully called-up, held by Chetan for non-payment of allotment money of ₹ 3 per share and first and final call money of ₹ 4 per share. These shares were reissued @ ₹ 8 per share as fully paid-up to Prem.

Rekha holds 100 shares of ₹ 10 each on which she has paid ₹ 1 per share on application.

Sunita holds 200 shares of ₹ 10 each on which she has paid ₹ 1 and ₹ 2 per share on application and allotment respectively.

Teena holds 300 shares of ₹ 10 each and has paid ₹ 1 on application, ₹ 2 on allotment and ₹ 3 on first call.

They all fail to pay their arrears and the second call of ₹ 4 per share. Shares are forfeited and subsequently reissued @ ₹ 11 per share as fully paid-up.

Journalise the above.

[Hint: As shares have been reissued at premium, discount allowed on reissue is Nil. Thus, total amount of ₹ 2,500 credited to Forfeited Shares Account will be transferred to Capital Reserve.]

Record the journal entries for forfeiture and reissue of shares in the following case:

Basak Ltd. forfeited 20 shares of ₹ 10 each, ₹ 7 called-up on which the shareholder had paid application and allotment money of ₹ 5 per share. Out of these, 15 shares were reissued to Naresh as ₹ 7 per share paid-up for ₹ 8 per share.

Record the journal entries for forfeiture and reissue of shares in the following case:

Y Ltd. forfeited 90 shares of ₹ 10 each, ₹ 8 called-up issued at a premium of ₹ 2 per share to 'R' for non-payment of allotment money of ₹ 5 per share (including premium). Out ofthese, 80 shares were reissued to Sanjay as ₹ 8 called-up for ₹ 10 per share.

Slow & Steady Ltd. invited  applications for 10,000 Equity Shares of ₹ 10 each for public subscription. The amount of these shares was payable as:

On application ₹ 1 per share, on allotment ₹ 2 per share, on first call ₹ 3 per share and on second and final call ₹ 4 per share.

Amounts payable on application, allotment and calls were duly received with the following exceptions:

1. A, who held 200 shares, failed to pay the money on allotments and calls.
2. B, to whom 150 shares were allotted, failed to pay the money on first call and final call.
3. C, who held 50 shares, did not pay the amount of second and final call.

The shares of A, B and C were forfeited and were subsequently reissued for cash as fully paid-up at a discount of 5%.

Pass necessary Journal entries to record these transactions in the books of the company.

'Venus Ltd.' was registered with an authorised capital of ₹ 40,00,000 divided into 4,00,000 equity shares of ₹ 10 each. 70,000 of these shares were issued as fully paid to 'M/s. Star Ltd.' for building purchased from them. 2,00,000 shares were issued to the public and the amounts were payable as follows:

The amounts received on these shares were as follows:

The directors forfeited 10,000 shares on which only ₹ 3 per share were received. These shares were reissued at ₹ 12 per share fully paid. Pass necessary Journal entries for the above transactions in the books of Venus Ltd.

[Hint: For forfeiture of shares:

Dr. Equity Share Capital A/c - ₹ 1,00,000;

Cr. Forfeited Shares A/c - ₹ 30,000, Equity Shares Allotment A/c - ₹ 20,000,

Equity Shares First Call A/c - ₹ 20,000 and Equity Shares Second and Final Call A/c - ₹ 30,000.]

Park Hospitality Ltd. incorporated with authorised capital of ₹ 15,00,000, 1,50,000 equity shares of ₹ 10 each, issued 1,00,000 equity shares for subscription payable ₹ 4 on application, ₹ 3 on allotment and balance as first and final call. The shares were subscribed, and due amounts were received except first and final call on 4,000 shares held by Pawan. Rakesh holding 2,000 shares paid call on his shares along with allotment money. Shares of Pawan were forfeited. Later, half the shares were reissued as fully paid-up and ₹ 4,000 were transferred to Capital Reserve. Pass the Journal entry for reissue of shares.

Grofers Ltd. having authorised capital of ₹ 25,00,000, issued 2,00,000 equity shares of ₹ 10 each for subscription payable ₹ 4 on application, ₹ 3 on allotment and balance on first and final call. The shares were subscribed, and due amounts were received except first and final call on 4,000 shares held by Rana. These shares were forfeited. Later, half the shares were reissued as fully paid-up and ₹ 14,000 were transferred to Capital Reserve. Pass the Journal entry for forfeiture and reissue of shares.

Software Ltd. company with registered capital of ₹ 5,00,000 in shares of ₹ 10 each issued 20,000 of such shares payable ₹ 2 on application, ₹ 4 on allotment, ₹ 2 on first call ₹ 2 on final call. All the money payable on allotment was duly received but on the first call being made, one shareholder paid the entire balance on his holding of 300 shares and five shareholders with a total holding of 1,000 shares failed to pay their dues on the first call. These shares were forfeited for non-payment of first call money. Final call was made and all the money due was received. Later on, forfeited shares were reissued @ ₹ 6 per share as fully paid-up.
Record the above in the company's Journal and prepare the Balance Sheet. 

150 shares of ₹ 10 each issued at a premium of ₹ 4 per share payable with allotment were forfeited for non-payment of allotment money of ₹ 8 per share including premium. The first and final call of ₹ 4 per share was not made. The forfeited shares were reissued at ₹ 15 per share fully paid-up.

Pass Journal entries in the books of X Ltd. for the above.

Sierra Ltd. forfeited 500 shares of ₹ 10 each, issued ata premium of ₹ 2 per share (payable with allotment) for non-payment of allotment money of ₹ 5 per share (including premium). The first and final call of ₹ 3 per share was not made. All the forfeited shares were reissued at ₹ 11 per share, fully paid-up.

Pass Journal entries for forfeiture and reissue of shares.

The Directors of a company forfeited 300 shares of ₹ 10 each issued at a premium of ₹ 3 per share , for the non-payment of the first call money of ₹ 2 per share . The final call of ₹ 2 per share has not been made. Half the forfeited shares were reissued at ₹ 1,500 as fully paid-up. Record the journal  entries for the forfeiture and reissue of shares.

JJK Ltd. forfeited 100 shares of ₹ 10 each (₹ 8 called-up) issued at a premium of ₹ 2 per share to Rahul on which he had paid application money of ₹ 5 per share, for non-payment of allotment money of ₹ 5 per share (including premium). Out of these, 70 shares were reissued to Sanjay for ₹ 7 per share as ₹ 8 called-up for ₹ 7 per share. Give necessary Journal entries relating to forfeiture and reissue of shares.

JCV Ltd., forfeited 200 shares of ₹ 10 each issued at a premium of ₹ 2 per share for the non-payment of allotment money of ₹ 3 per share (including premium). The first and final call of  ₹ 4 per share has not been made as yet . 50% of the forfeited shares were reissued at ₹ 8 per share  as fully paid-up . Pass necessary Journal entries for the forfeiture and reissue of shares. 

Pass necessary journal entries in the books of the company for the following transactions:

Vishesh Ltd. forfeited 1,000 Equity Shares of ₹ 10 each issued at a premium of ₹ 2 per share for non-payment of allotment money of ₹ 5 per share including premium. The final call of ₹ 2 per share was not yet called on these shares. Of the forfeited shares 800 shares were reissued at ₹ 12 per share as fully paid-up. The remaining shares were reissued at ₹ 11 per share fully paid-up.

Gaurav applied for 5,000 shares of ₹ 10 each at a premium of 2.50 per share. But he was allotted only 2,500 shares on pro rata basis . After having paid ₹ 3 per share on application, he did not pay allotment money of ₹ 4.50 per share (including premium) and on his subsequent failure to pay the first call of ₹ 2 per share, his shares were forfeited. These shares were reissued at the rate of ₹ 8 per share credited as fully paid .
Pass journal entries to record the forfeiture and reissue of shares. 

Amal had applied for 7,000 shares of ₹ 10 each at a premium of ₹ 5 per share. He was allotted 4,000 shares on pro rata basis. After having paid ₹ 3 per share on application, he did not pay allotment money of ₹ 7 per share (including premium) and on his subsequent failure to pay the first call of ₹ 3 per share, his shares were forfeited. Calls not received were transferred to Calls-in-Arrears Account. These shares were reissued at the rate of ₹ 8 per share credited as fully paid.

Pass Journal entries to record the forfeiture and reissue of shares.

Pass necessary Journal entries for forfeiture and reissue of shares in the following case:

Neon Ltd. forfeited 2,000 shares of ₹ 10 each issued at a premium of ₹ 2 per share for non-payment of allotment money of ₹ 5 per share (including premium). The first and final call of ₹ 2 per share was not yet made. Out of these, 1,500 shares were reissued at ₹ 7 per share, ₹ 8 paid-up.

Pass necessary Journal entries for forfeiture and reissue of shares in the following case:

Mamta Ltd. forfeited 3,000 shares of ₹ 10 each on which the first call of ₹ 3 per share was not received. The second and final call of ₹ 1 per share was not yet called. Out of these, 2,000 shares were reissued at ₹ 9 per share, ₹ 9 paid-up.

'Telecom Ltd.' issued 20,000 Equity Shares of ₹ 10 each at a premium of ₹ 5 per share, payable as: ₹ 7 (including premium) on application, ₹ 5 on allotment and the balance after three months of allotment. A shareholder to whom 200 shares were allotted failed to pay the allotment and call money and his shares were forfeited. 160 of the forfeited shares were reissued for ₹ 1,600.
Give necessary entries in company's Journal and the Balance Sheet.

Healthy Foods Ltd. had authorised capital of ₹ 50,00,000, 5,00,000 equity shares of ₹ 10 each issued 3,75,000 equity shares for subscription at a premium of 20% payable ₹ 4 on application, ₹ 5 on allotment and balance as first and final call. The shares were subscribed, and due amounts were received except allotment money on 25,000 shares. These shares were forfeited, Later these shares were reissued at ₹ 7 paid-up and ₹ 50,000 were transferred to Capital Reserve. First and final call was demanded from the shareholders and was received except on 10,000 which was transferred to Calls-in-Arrears Account.

Pass the Journal entries for forfeiture, reissue of forfeited shares and first and final call.

Panasonic Ltd. was formed on 1st April, 2024 with an authorised capital of ₹ 20,00,000, divided into 20,000 Equity Shares of ₹ 100 each. 10,000 shares were issued as fully paid to the vendors of building for payment of the purchase consideration. The remaining 10,000 shares were offered for public subscription at a premium of ₹ 5 per share payable as:

Applications were received for 9,000 shares which were duly allotted and the allotment money was received in full. At the time of the first call, a shareholder who held 1,000 shares failed to pay the first call money and his shares were forfeited. These shares were reissued @ ₹ 60 per share, ₹ 70 per share paid-up. Final call has not been made.

You are required to (i) give necessary Journal entries to record the above transactions and (ii) show how share capital would appear in the Balance Sheet of the company.

Sukanya Ltd. invited applications for issuing 1,00,000 equity shares of  ₹  10 each. The shares were issued at  a premium of  ₹  20 per share. The amount was payable as follows:

Applications for 96,000 shares were received. Rohit , a shareholder holding 7,000 shares, failed to pay both the calls and Namit , a holder of 5,000 shares , did not pay the final call.
Shares of Rohit and Namit were forfeited . Of the forfeited shares 8,000 shares including all  the shares of Rohit were reissued to Reena at  ₹  8 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of Sukanya Ltd.

Abhipra Ltd. invited applications for issuing 1,00,000 equity shares of ₹ 10 each. The shares were issued at a premium of ₹ 20 per share. The amount was payable as follows:

Applications for 90,000 shares were received. Paresh, a shareholder holding 5,000 shares, did not pay the allotment money and call. While Dharam, holder of 3,000 shares, did not pay the call. Shares of Paresh and Dharam were forfeited. Of the forfeited shares, 5,000 shares including 3,000 shares of Paresh and 2,000 shares of Dharam were reissued to Parul at ₹ 8 per share as fully paid-up.

Pass necessary Journal entries for the above transactions in the books of Abhipra Ltd.

'Sagar Ltd.' forfeited 1,000 shares of ₹ 10 each for non-payment of first and final call of ₹ 2 per share. These shares were reissued and gain on reissue transferred to Capital Reserve was ₹ 5,000. Determine the amount realised from reissue of shares.

'Swasth Ltd.' forfeited 2,000 shares of ₹ 10 each for non-payment of final call of ₹ 3 per share. 1,500 of these shares were reissued and gain on reissue transferred to Capital Reserve was ₹ 7,500. Determine the amount realised from reissue of shares.

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

Applications were received for 30,000 shares. Applications for 6,000 shares were rejected and pro rata allotment was made to the remaining applicants.

Abhay, who was allotted 500 shares failed to pay allotment money and on his subsequent failure to pay the first call his shares were forfeited. Of these, 300 shares were reissued as fully paid-up for ₹ 6 per share.

Journalise the transactions to record the forfeiture and reissue of shares.

[Hints: At the time of forfeiture of shares, Securities Premium A/c will be debited by ₹900.
Calls-in-Arrears = [₹ 900 + (500 × ₹ 2)] = ₹ 1,900.]

Alfa Ltd. invited applications for issuing 75,000 equity shares of  ₹  10 each. The amount was payable as follows:

Applications for 1,00,000 shares were received. Shares were allotted to all the applicants on pro rata basis and excess money received with applications was transferred towards sums due on first call. Vibha who was allotted 750 shares failed to pay the first call. Her shares were immediately forfeited. Afterwards the second call was made. The amount due on second call was also received except on 1,000 shares applied by Monika. Her shares were also forfeited. All the forfeited shares were reissued to Mohit for ₹9,000 as fully paid-up.

Pass necessary journal entries in the Books of Alfa Ltd. for the above transactions.

Himalaya Company Limited issued for public subscription of 1,20,000 equity shares of Rs 10 each at a premium of Rs 2 per share payable as under:

Applications were received for 1,60,000 shares. Allotment was made on a pro-rata basis. Excess money on the application was adjusted against the amount due on allotment.

Rohan, for whom 4,800 shares were allotted, failed to pay for the two calls. These shares were subsequently forfeited after the second call was made. All the shares forfeited were reissued to Teena as fully paid at Rs 7 per share.

Record journal entries in the books of the company to record these transactions relating to share capital. Also, show the company’s balance sheet.

Visa Ltd. offered 10,000 shares of ₹ 100 each payable as follows: on application: ₹ 3, on allotment: ₹ 2, on first call: ₹ 3, on second call: ₹ 2. Public applied for 13,000 shares. Shares were allotted on pro rata to the applicants of 12,000 shares. All the shareholders have paid the amount up to allotment except Mohan, the allottee of 200 shares. His shares were forfeited. First call was then made. Forfeited shares were reissued @ ₹ 9 per share, ₹ 8 called-up. Second call has not yet been made. You are required to make the Cash Book and pass the Journal entries.

SaReGaMa Ltd. invited applications for issuing 80,000 equity shares of ₹ 100 each at a premium of ₹ 10. The amount was payable as follows:

Applications of 1,20,000 shares were received. Allotment was made on pro rata basis to all applicants. Excess money received on application was adjusted on sums due on allotment. Dhwani, who was allotted 1,600 shares, failed to pay allotment money and Sargam who applied for 6,000 shares did not pay first call money. These shares were forfeited immediately after first call. 2,000 of these shares (including all shares of Dhwani were issued to Tarang for ₹ 95 per share as ₹ 80 paid-up. Pass necessary Journal entries in books of Saregama Ltd. by opening Calls-in-Arrear and Calls-in-Advance Accounts, if final call has not been made.

XYZ Ltd . is registered with an authorised capital of ₹ 2,00,000 divided into 2,000 shares of ₹ 100 each of which , 1,000 shares were offered for public subscription at a premium of ₹ 5 per share , payable as:

Applications were received for 1,800 shares, of which applications for 300 shares were rejected outright; the rest of the application were allotted 1,000 shares on pro rata basis. Excess application money was transferred to allotment.
All the money was duly received except from Sundar , holder of 100 shares, who failed  to pay allotment and first call money. His shares were later forfeited and reissued to Shyam at ₹ 60 per share ₹ 70 paid-up. Final call has not been made.
Pass necessary Journal entries and prepare Cash Book in the books of XYZ Limited. 

Janta Ltd. issued applications for 5,00,000 equity shares of ₹ 10 each, at a premium of ₹ 4 per share. The amount was payable as follows:

On application ₹ 6 (including ₹ 2 premium), on Allotment ₹ 6 (including ₹ 2 premium) and Balance on first and final call.

Applications for 7,50,000 shares were received. Allotment was made to all the applicants on pro rata basis. Mohan to whom 1,000 shares were allotted did not pay allotment and call money. Vikram to whom 500 shares were allotted, did not pay the call money. These shares were forfeited and afterwards reissued @ ₹ 8 per share fully paid-up. Pass the necessary Journal entries.

Alok Ltd. invited applications for 1,00,000 Equity Shares of ₹ 10 each. The shares were issued at a premium of ₹ 5 per share. Excess Application and Allotment Money, if any is to be adjusted against calls. The amount was payable as follows:

On Application and Allotment ₹ 8 per share (including premium ₹ 3). Balance including premium on the First and Final Call.

Applications for 1,50,000 shares were received. Applications for 10,000 shares were rejected and pro rata allotment was made to the remaining applicants on the following basis:

1. Applications for 80,000 shares were allotted 60,000 shares; and
2. Applications for 60,000 shares were allotted 40,000 shares.

Mohan, who belonged to the first category and was allotted 300 shares, failed to pay the first and final call money. Sohan, who belonged to the second category and was allotted 200 shares also failed to pay the call money, their shares were forfeited. The forfeited shares were reissued @ ₹ 12 per share fully paid-up.

Prepare Cash Book and pass necessary Journal entries.

Ruchi Ltd. issued for public subscription 40,000 Equity Shares of ₹ 10 each at a premium of  ₹ 2 per share payable as:

Applications were received for 60,000 shares. Allotment was made on pro rata basis to the applicants for 48,000 shares, the remaining applications being refused. Money overpaid on application was utilised towards sums due on allotment. Ram to whom 1,600 shares were allotted failed to pay the allotment money and Shyam to whom 2,000 shares were allotted failed to pay the two calls. These shares were subsequently forfeited after the second and final call was made. All the forfeited shares were reissued as fully paid-up @ ₹ 8 per share.
Give necessary Journal entries for the above transactions. 

Nitro Paints Ltd. invited applications for issuing 1,60,000 equity shares of ₹10 each at a premium of ₹3 per share. The amount was payable as follows:

Applications for 1,80,000  shares were received. Applications for 10,000  shares were rejected and pro rata allotment was made to the remaining applicants. Over payment received on application was adjusted towards sums due on allotment. All calls were made and were duly received except allotment and final call from Aditya who was  allotted 3,200 shares. His shares were forfeited. Half of the forfeited shares were reissued for ₹43,000 as fully paid-up.
Pass necessary journal entries for the above transactions in the books of Nitro Paints Ltd.

XYZ Ltd. invited applications for issuing 50,000 Equity Shares of  ₹ 10 each . The amount was payable as:

Applications were received for 75,000 shares and pro rata allotment was made as:

Applicants for 40,000 shares were allotted 30,000 shares on pro rata basis. 
Applicants for 35,000 shares were allotted 20,000 shares on pro rata basis.

Ramu, to whom 1,200 shares were allotted out of the group applying for 40,000 shares, failed to pay the allotment money. His shares were forfeited immediately after allotment.

Shamu, who had applied for 700 shares out of the group applying for 35,000 shares, failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares, 1,000 shares were reissued @ ₹ 8 per share as fully paid-up. The reissued shares included all the forfeited shares of Shamu.

Pass necessary Journal entries to record the above transactions.

Konark Ltd. invited applications for issuing 3,00,000 shares of ₹ 10 each. The amount per share was payable as follows: ₹ 3 on application, ₹ 3 on allotment, and ₹ 4 on first and final call.

The company received applications for 4,00,000 shares. Allotment was done as follows:

1. Applicants of 2,40,000 shares were allotted 2,00,000 shares.
2. Applicants of 1,20,000 shares were allotted 80,000 shares.
3. Remaining applicants were allotted 20,000 shares.

Money overpaid on applications was adjusted towards sums due on allotment. Divij, a shareholder, belonging to group (ii), who had applied for 6,000 shares, failed to pay allotment and call money, Faisal, another shareholder, who was allotted 10,000 shares, paid the call money along with allotment. Faisal belonged to group (i),

Divij's shares were forfeited after the first and final call. Half of the forfeited shares were reissued @ ₹ 10 per share fully paid.

Pass the necessary Journal entries to record the above transactions in the books of the company.

Max Ltd. invited applications for 2,00,000 Equity Shares of ₹ 10 each to be issued at 20% premium. The money payable per share was: on application ₹ 5, on allotment ₹ 4 (including premium of ₹ 2), first call ₹ 2 and final call ₹ 1.

Applications were received for 2,40,000 shares and allotment was made as:

1. to applicants for 1,00,000 shares - in full,
2. to applicants for 80,000 shares - 60,000 shares,
3. to applicants for 60,000 shares - 40,000 shares.

Applicants of 1,000 shares falling in Category (i) and applicants of 1,200 shares falling in Category (ii) failed to pay allotment money. These shares were forfeited on failure to pay first call. Holders of 1,200 shares falling in Category (iii) failed to pay the first and final calland these shares were forfeited after final call.

1,300 shares [1,000 of Category (i) and 300 of Category (ii)] were reissued at ₹ 8 per share as fully paid-up.

Journalise the above transactions. Prepare Cash Book and Balance Sheet.

XYZ Ltd . issued a prospectus inviting applications for 2,000 shares of ₹ 10 each at a premium of ₹ 4 per share , payable as:                 

Applications were received for 3,000 shares and pro rata allotment was made on the applications for  2,400 shares. It was decided to utilise excess application money towards the amount due on allotment .
X, to whom 40 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call , his shares were forfeited.
Y, who applied for 72 shares failed to pay the two calls and on his such failure , his shares were forfeited. 
Of the shares forfeited , 80 shares were sold to Z credited as fully paid-up for  ₹ 9 per share , the whole of Y's shares being included . Prepare Journal , Cash Book and the Balance Sheet . 

An authorised capital refers to ______.

Issued Capital means ______.

Which of the following is correct statement with respect to Reserve Capital?

When shares are forfeited, the Share Capital A/c is debited with ______ and the Share Forfeiture A/с is credited with ______.

Gain on reissue of forfeited shares is transferred to ______.

An offer of securities or invitation to subscribe securities to a select group of persons is termed as ______.

Money received in advance from shareholders before it is actually called-up by the director is ______.

What will be the correct sequence of events?

1. Forfeiture of shares.
2. Default on Calls.
3. Re-issue of shares.
4. Amount transferred to capital reserve.

Which of the following statement(s) is/are true?

1. Authorised Capital < Issued Capital
2. Authorised Capital ≥ Issued Capital
3. Subscribed Capital ≤ Issued Capital
4. Subscribed Capital > Issued Capital

According to Section 52(2) of the Companies Act, 2013, Securities Premium cannot be utilised for ______.

If Xeno Ltd. acquired net assets of ₹ 20,00,000 against purchase consideration of ₹ 22,50,000, then the balance of ₹ 2,50,000 will be debited to ______.

The directors of Vishant Ltd. resolved that 1,000 equity shares of ₹ 100 each, ₹ 75 called-up be forfeited for non-payment of first call of ₹ 25. 90% of these shares were reissued as fully paid for ₹ 60 per share. The gain on reissue is ______.

Mars Ltd. forfeited 50 shares of ₹ 100 each issued at 10% premium on which allotment money of ₹ 30 per share (including premium) and first call of ₹ 30 per share were not received and the second and final call of ₹ 20 per share was not yet called. 20 of these shares were reissued as ₹ 80 paid-up for ₹ 70 per share. On reissue, the Forfeited Shares Account will be

Attire Ltd. forfeited 60 shares of ₹ 100 each issued at 10% premium on which allotment money of ₹ 30 per share (including premium) and first call of ₹ 30 per share were not received and second and final call of ₹ 20 per share was not yet called. 20 of these were reissued as ₹ 80 paid-up for ₹ 70 per share. On reissue, the Share Capital Account will be ______.

Assertion (A): Forfeited shares may be reissued by the company at par, at premium or at discount.

Reason (R): Reissue of forfeited shares is not an issue of shares but is selling the shares that were issued earlier and were cancelled by the company.

In the context of above two statements, which of the following is correct?

If 500 shares of ₹ 10 each, ₹ 9 called (including premium of ₹ 2) are forfeited due to non-payment of first call of ₹ 2 per share then Share Capital will be debited by ______.

Sun Star Ltd. forfeited 40 shares of ₹ 10 each issued at a premium of 40% to Raj who had applied for 48 shares. After having paid ₹ 6 (including ₹ 2 premium), he did not pay allotment money of ₹ 2 (including ₹ 1 premium) and on his subsequent failure to pay the first call of ₹ 3 (including ₹ 1 premium) his shares were forfeited. The amount to be credited to Forfeited Shares Account is ______.

Madhur Ltd. has authorised capital of ₹ 80,00,000 divided into 8,00,000 equity shares of ₹ 10 each. Madhur Ltd. allotted 10,000 equity shares of ₹ 10 each as fully paid to the signatories of the Memorandum of Association and 5,000 equity shares of ₹ 10 each as fully paid to the vendor against the purchase of furniture and offered 5,00,000 equity shares of ₹ 10 each. It was decided to call ₹ 2 per share at the time of company's winding-up. Balance amount was called-up. The issue was fully subscribed. All money were duly received with the following exceptions.

Rajesh, who holds 4,000 shares has not paid any amount after application money (₹ 2 per share).

Mahesh, who holds 600 shares, has paid only ₹ 6 per share.

Sanjay, who holds 400 shares, has paid only ₹ 6 per share.

4,000 shares held by Rajesh were forfeited.

Present the share capital in the Balance Sheet of Madhur Ltd.

Complete the following Journal entries:

Megha Ltd. issued 60,000 shares of ₹ 10 each at 20% premium payable ₹ 3 on application, ₹ 5 (including premium) on allotment and balance as first and final call. Applications were received for 1,05,000 shares. The Directors resolved to allot the shares as follows:

Rajan, who had applied for 1,000 shares in category (i) and Rajiv who was allotted 600 shares in category (ii) did not pay the allotment money.

You are required to calculate the amount received on allotment.

Pass entries for forfeiture and reissue in the following case.

Hina Ltd. forfeited 5,000 shares of Rahul, who had applied for 6,000 shares for non-payment of allotment money of ₹ 5 per share and first and final call of ₹ 2 per share. Out of these, 3,000 shares were reissued @ ₹ 12 per share as fully paid.

Pass entries for forfeiture and reissue in the following case.

Hans Ltd. forfeited 3,000 shares of ₹ 10 each (issued at ₹ 2 premium) for non-payment of first call of ₹ 2 per share. Final call of ₹ 3 per share was not yet made. Out of these, 2,000 shares were reissued at ₹ 10 per share as fully paid.

Petromax Ltd. invited applications for issuing 75,000 equity shares of ₹ 75 each at a premium of ₹ 25 per share. The amount was payable as follows:

On Application and allotment - ₹ 40 per share

On First and Final Call - Balance (including premium)

Applications for 1,50,000 shares were received. Applications for 50,000 shares were rejected and the application money was refunded.

Shares were allotted to the remaining applicants on pro rata basis. Excess application money was utilised in payment of first and final call. Rajan, to whom 1,500 shares were allotted, failed to pay the first and final call. Sajan, who had applied for 2,000 shares, also failed to pay the first and final call. Shares of both Rajan and Sajan were forfeited.

Pass the necessary Journal entries in the books of Petromax Ltd.

Arti Ltd. invited applications for 2,00,000 equity shares of ₹ 10 each payable ₹ 4 on application, ₹ 3 on allotment and balance on first and final call. The shares were subscribed and due amounts were received except first and final call on 9,000 shares held by Pawan. Ramesh holding 4,000 shares paid call money on his shares along with allotment money. Shares of Pawan were forfeited. Later, 2/3rd of the forfeited shares were reissued as fully paid-up and ₹ 36,000 were transferred to Capital Reserve.

Pass the Journal entry for forfeiture and reissue of shares.

Metalic Ltd. invited applications for 1,00,000 equity shares of ₹ 10 each, payable as ₹ 2 on application, ₹ 3 on allotment and the balance on first and final call. Applications were received for 3,00,000 shares and the shares were allotted on a pro rata basis. The excess application money was to be adjusted against allotment money. Mohan, a shareholder, who had applied for 3,000 shares failed to pay the call money accordingly his shares were forfeited and reissued at ₹ 8 per share as fully paid.

Pass necessary Journal entries assuming that Calls-in-Arrears Account is maintained.

Answer the following questions on the basis of the above information:

1. Excess Application money on ______ shares is adjusted towards Share Allotment Account.
   1. 16,000.
   2. 12,000.
   3. 14,000.
   4. 10,000.
2. On forfeiture of shares, Share Capital Account will be debited with
   1. ₹ 18,00,000
   2. ₹ 15,00,000
   3. ₹ 10,00,000
   4. ₹ 12,00,000
3. What amount will be credited to Shares Forfeited Account at the time of forfeiture of 15,000 shares?
   1. ₹ 1,50,000
   2. ₹ 13,50,000
   3. ₹ 10,50,000
   4. ₹ 15,00,000
4. At the time of reissue of forfeited shares, how much amount will be debited to 'Shares Forfeited Account'?
   1. ₹ 8,00,000
   2. ₹ 3,60,000
   3. ₹ 4,50,000
   4. ₹ 10,00,000
5. ______ will be debited to Bank Account at the time of reissue of forfeited shares.
   1. ₹ 10,50,000
   2. ₹ 8,40,000
   3. ₹ 12,00,000
   4. ₹ 15,00,000
6. What amount will be transferred to Capital Reserve?
   1. ₹ 4,50,000
   2. ₹ 4,70,000
   3. ₹ 4,80,000
   4. ₹ 6,00,000