Question

3. New Company Ltd. was registered with 1,000 Equity Shares of 25 each payabile
1
Ans. J/E, Shares Forfeiture Ne ? 2,000)
4. Surya
SBPD Publications Financial Accounting
share on application, 7 10 on allotment, 75 on first call and the balance on final al
shares were issued to the public and were fully taken up. When cash was received
found that one shareholder holding 100 shares in the company failed to pay the all
money. After completion of the appropriate procedure, the Director forfested these share give me a full answer plzz​

Answer 1

In case of non- payment of any of the call money, the shares get forfeited. Later these shares can be sold at the called up value. 

On issue of forfeited shares, the share capital account is debited with the called up value i.e 18,000

Forfeiture amount per share is the amount to be received by the company on forfeiture of each share.

ForfeitureAmount=ApplicationAmount+AllotmentAmount

Substitute the values in above equation

ForfeitureAmount=Rs5

Forfeiture amount is the money received by company on forfeiture (cancellation of share) or on the reissue of share.

ForfeitureAmount=No.ofshares×ForfeitureAmount 

Substitute the values in the above equation

ForfeitureAmount=500shares×Rs5=Rs2500

ForfeitureAmountfor125shares=125shares×Rs5=Rs625

ForfeitureAmountonreissue=125shares×Rs1=Rs125

 Profit on the reissue is the profit earned by the company when the forfeited shares are reissued

Profitonreissue=ForfeitedAmountonforfeiture

Substitute the values in the above equation

Profito

I HOPE THIS HELPFUL FOR YOU