Question

27. Record the Journal entries for forfeiture and re-issue in the following cases : (a) X Ltd. forfeited 200 shares of 100 each 70 called-up, on which the shareholders had paid application and allotment money of 50 per share. Out of these, 150 shares were re-issued to Naresh as 70 paid-up for 80 per share. (b) Y Ltd. forfeited 180 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 of these, 160 shares were re-issued to Sanjay at 8 called-up for 10 per share fully paid-up. [Ans. (a) Capital Reserve * 7,500, (b) Capital Reserve 480.) 28. The Directors of X Ltd. de​

Answer 1

Answer:

Working notes :

1. Profit on Forfeiture of 20 shares = 100

Profit on Forfeiture of 15 shares =

$\frac{100}{20} \times 15 = ₹ 75$

Share Forfeiture ( Cr. ) = 75

Share Forfeiture ( Dr. ) = Ni|

Capital Reserve = ₹75

2.

Profit on forfeiture of 90 shares = 450

Profit on forfeiture of 80 shares =

$\frac{450}{90} \times 80 = ₹400$

Share Forfeiture ( Cr. ) = 400

Share Forfeiture ( Dr. ) = Ni|

Capital Reserve = ₹400