Question

x ltd issued share of rs 50 at a premium of Rs 12 per shares. Amount was payble as follows.
On application Rs 10 (including premium
of Rs 3)
On allotment Rs 15 (including premium
of Rs 4)
On first call. Rs 20 (including premium
of Rs 5)
On final call Rs 17
i) anil who held 500 shares did not pay
allotment and first call and his shares
were forfeited.
ii) Bimal who held 800 shares did not
pay first and final call and his shares
were forfeited.
iii)Chander who held 1000 shares failed
to pay final call and his shares were
forfeited. 50% shares of anil and
Bimal were reissued at 10% discount.
Give journal entries for the forfeited
and reissue of shares.

Answer 1

Explanation:

please check the attachment

Answer 2

Journal entries for the forfeited shares:

• Anil's 500 shares: Debit "Forfeited Shares" account for Rs (50*500) 25,000 and Credit "Anil's Capital account" for the same amount.
• Bimal's 800 shares: Debit "Forfeited Shares" account for Rs (50*800) 40,000 and Credit "Bimal's Capital account" for the same amount.
• Chander's 1000 shares: Debit "Forfeited Shares" account for Rs (50*1000) 50,000 and Credit "Chander's Capital account" for the same amount.

Journal entries for the reissue of shares:

• Reissue of 250 shares (50% of Anil's forfeited shares) at a 10% discount: Debit "Capital account" for Rs (50250) 12,500 and Credit "Anil's Capital account" for Rs (5025090%) 11,250 and Credit "Discount on Reissue of Shares" account for Rs (50250*10%) 1,250.
• Reissue of 400 shares (50% of Bimal's forfeited shares) at a 10% discount: Debit "Capital account" for Rs (50400) 20,000 and Credit "Bimal's Capital account" for Rs (5040090%) 18,000 and Credit "Discount on Reissue of Shares" account for Rs (50400*10%) 2,000.

In summary, the journal entries for the forfeited shares involve debiting the "Forfeited Shares" account and crediting the shareholders' capital accounts for the amount of the forfeited shares.

For the reissue of shares, the journal entries involve debiting the "Capital account" and crediting the shareholders' capital accounts for the reissued amount after adjusting for the discount on reissue.

Additionally, the discount on reissue is also credited to a separate account.

To learn more about share capital from the given link.

https://brainly.in/question/48565102

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