A 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 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.
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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.
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Payable as:
ON Application : 2
On Allotment :4
On first call : 2
On final call : 2
Total : 10
Calculation of capital reserve :
Share forfeiture cr. ( at the time of forfeiture of share ) 6000
less : Share forfeiture Dr. ( at the time of re- issues) 4000
Balance in share forfeiture accounts re - issue of share 2000
Capital reserve = balance in share forfeiture account of re - issue share = 2000