Question

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. dd

Answer 1

Answer:

Answer:

share capital A/c (200×70) Dr. 14000

To Share Forfeiture A/c (200×50) 10000

To Calls in arrears A/c (200×20) 4000

Bank A/c (150×80) Dr. 12000

To share capital A/c 12000

Share forfeiture A/c Dr. 7500

To capital reserve A/c 7500

Explanation:

Capital reserve-

Amount of share forfeiture/No. of share forfeited × no. of re issued shares

10000/200×150= 7500

or (150×50 = 7500)

Explanation: