Accountancy, asked by jyoti1407, 10 months ago

National heavy chemicals limited forfeited 500 shares of Rs.100 each issued at 10% premium (to be paid at the time of allotment)on which first call of rupees 30 per share was not received and the second and final call of rupees 20 per share was not yet called. give journal entries regarding forfeiture and reissue of shares in each of the following alternative cases :
(1.) if two hundred of these shares were reissued as rupees 80 paid up for rupees 90 per share.
(2.) if 200 of these shares were reissued as rupees 80 paid up for rupees 80 Per share
(3.)if two hundred of these shares were re issued as rupees 80 paid up for rs 70 Per share
(4.) if 200 of the shares were reissued as rupees 80 paid up for rupees 30 per share
(5.)if 200 of the shares were reissued as fully paid up for rupees 50 per share.​

Answers

Answered by kirtilohateuc
0

Explanation:

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

ForfeitureAmount=ApplicationAmount

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=200shares×Rs5=Rs1000

ForfeitureAmountfor100share=100shares×Rs5=Rs500

Forfeitureamountonreissue=100shares×Rs2=200

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

Profitonreissue=ForfeitedAmountonforfeiture−Forfeitedamountonreissue

Substitute the values in the above equation

Profitonreissue=Rs500−Rs200=Rs300

Hence, the profit earned on the reissue of shares is Rs 300.

Share Forfeiture a/c Dr. Rs300

To share capital a/ Rs300.

Answered by shilpa85475
0

Share Capital A/c. Dr. (500 x 80)  40,000

To Calls in Arrears A/c. (500 x 30)    15,000  

To Share Forfeiture A/c (500 x 50)    25,000    

(500 shares forfeited)

1.)

Bank A/c Dr. (200 x 90)   18,000

To Share Capital A/c (200 x 80)    16,000

To Securities Premium A/c (200 x 10)     2,000

(Being 200 shares reissued as Rs.80 paid up at Rs.90 per share)  

Share Forfeiture A/c Dr. (200 x 50)       10,000

To Capital Reserve A/c      10,000  

(Being paid up value of Rs.50 on 200 shares transferred to Capital Reserve A/c)  

2.)

Bank A/c Dr. (200 x 80)   16,000

To Share Capital A/c (200 x 80)    16,000

(Being 200 shares reissued as Rs.80 paid up at Rs.80 per share)  

Share Forfeiture A/c Dr. (200 x 50)     10,000

To Capital Reserve A/c      10,000

(Being paid up value of Rs.50 on 200 shares transferred to Capital Reserve A/c)  

3.)

Bank A/c Dr. (200 x 70)         14,000

Share Forfeiture A/c Dr. (200 x 10)           2,000

To Share Capital (200 x 80)     16,000

(Being 200 shares reissued as Rs.80 paid up at Rs.70 per share)  

Share Forfeiture A/c Dr. (200 x 40)    8,000

To Capital Reserve A/c      8,000  

(Being paid up value of Rs.50 on 200 shares less discount of Rs.10 per share transferred to Capital Reserve A/c)  

4.)

Bank A/c Dr. (200 x 30)           6,000

Share Forfeiture A/c Dr. (200 x 50) 10,000

To Share Capital A/c (200 x 80)    16,000

(Being 200 shares reissued as Rs.80 paid up at Rs.30 per share)  

Capital Reserve is 0

5.)

Bank A/c Dr. (200 x 50)   10,000

Share Forfeiture A/c Dr. (200 x 50) 10,000

To Share Capital (200 x 100)     20,000

(Being 200 shares reissued as fully paid up at Rs.50 per share)  

Capital Reserve is 0

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