Question

Problem 6:
XYZ Company Ltd. (Shares issued at premium where the premium is included in the allotment stage, Calls-In Arrears, Forfeiture and Re-issue of Shares) Journal Entries: In the Books of XYZ Company Ltd.

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Answer 1

$\huge \mathfrak \red{ Solution }$

* Explain : -

$Share \: Capital \: A/c   Dr.          25000$

$Securities \: premium A/c Dr.   5000$

$To \: Share \: Forfeiture \: A/c   10000$

$To \: Calls \: In \: Arrear \: A/c      20000$

$The \: journal \: entry \: on \: forfeiture \: \\ will \: be:$

$Share Capital A/c   Dr   25,000 \\ (500*50)$

$Securities \: Premium \: A/c Dr.     5,000 \\ (500*10)$

$To \: Share \: Forfeiture \: A/c            10,000 \\ (500*20)$

$To \: Calls \: In \: Arrear A/c               20,000 \\ (500*40)$

Answer 2

Answer:

Solution

Solution* Explain : -

Solution* Explain : -Share \: Capital \: A/c Dr. 25000ShareCapitalA/c Dr. 25000

Solution* Explain : -Share \: Capital \: A/c Dr. 25000ShareCapitalA/c Dr. 25000Securities \: premium A/c Dr. 5000SecuritiespremiumA/cDr. 5000

Solution* Explain : -Share \: Capital \: A/c Dr. 25000ShareCapitalA/c Dr. 25000Securities \: premium A/c Dr. 5000SecuritiespremiumA/cDr. 5000To \: Share \: Forfeiture \: A/c 10000ToShareForfeitureA/c 10000

Solution* Explain : -Share \: Capital \: A/c Dr. 25000ShareCapitalA/c Dr. 25000Securities \: premium A/c Dr. 5000SecuritiespremiumA/cDr. 5000To \: Share \: Forfeiture \: A/c 10000ToShareForfeitureA/c 10000To \: Calls \: In \: Arrear \: A/c 20000

Solution* Explain : -Share \: Capital \: A/c Dr. 25000ShareCapitalA/c Dr. 25000Securities \: premium A/c Dr. 5000SecuritiespremiumA/cDr. 5000To \: Share \: Forfeiture \: A/c 10000ToShareForfeitureA/c 10000To \: Calls \: In \: Arrear \: A/c 20000Thejournalentryonforfeiture

Solution* Explain : -Share \: Capital \: A/c Dr. 25000ShareCapitalA/c Dr. 25000Securities \: premium A/c Dr. 5000SecuritiespremiumA/cDr. 5000To \: Share \: Forfeiture \: A/c 10000ToShareForfeitureA/c 10000To \: Calls \: In \: Arrear \: A/c 20000Thejournalentryonforfeiturewillbe:

Solution* Explain : -Share \: Capital \: A/c Dr. 25000ShareCapitalA/c Dr. 25000Securities \: premium A/c Dr. 5000SecuritiespremiumA/cDr. 5000To \: Share \: Forfeiture \: A/c 10000ToShareForfeitureA/c 10000To \: Calls \: In \: Arrear \: A/c 20000Thejournalentryonforfeiturewillbe:ShareCapitalA/c Dr 25,000

Solution* Explain : -Share \: Capital \: A/c Dr. 25000ShareCapitalA/c Dr. 25000Securities \: premium A/c Dr. 5000SecuritiespremiumA/cDr. 5000To \: Share \: Forfeiture \: A/c 10000ToShareForfeitureA/c 10000To \: Calls \: In \: Arrear \: A/c 20000Thejournalentryonforfeiturewillbe:ShareCapitalA/c Dr 25,000(500∗50)

Solution* Explain : -Share \: Capital \: A/c Dr. 25000ShareCapitalA/c Dr. 25000Securities \: premium A/c Dr. 5000SecuritiespremiumA/cDr. 5000To \: Share \: Forfeiture \: A/c 10000ToShareForfeitureA/c 10000To \: Calls \: In \: Arrear \: A/c 20000Thejournalentryonforfeiturewillbe:ShareCapitalA/c Dr 25,000(500∗50)

Solution* Explain : -Share \: Capital \: A/c Dr. 25000ShareCapitalA/c Dr. 25000Securities \: premium A/c Dr. 5000SecuritiespremiumA/cDr. 5000To \: Share \: Forfeiture \: A/c 10000ToShareForfeitureA/c 10000To \: Calls \: In \: Arrear \: A/c 20000Thejournalentryonforfeiturewillbe:ShareCapitalA/c Dr 25,000(500∗50)

Solution* Explain : -Share \: Capital \: A/c Dr. 25000ShareCapitalA/c Dr. 25000Securities \: premium A/c Dr. 5000SecuritiespremiumA/cDr. 5000To \: Share \: Forfeiture \: A/c 10000ToShareForfeitureA/c 10000To \: Calls \: In \: Arrear \: A/c 20000Thejournalentryonforfeiturewillbe:ShareCapitalA/c Dr 25,000(500∗50) \begin{gathered}Securities \: Premium \: A/c Dr. 5,000 \\ (500*10)\end{gathered}

Explanation:

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