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8.30 Double Entry Book Keeping—CBSE XII

19. S Ltd. with a registered capital of ` 5,00,000 in shares of ` 10 each, invited appli cations for 20,000 shares
payable as:
On application ` 2 per share,
On allotment ` 2 per share,
On first call ` 3 per share,
On second and final call ` 3 per share.
An applicant who had been allotted 250 shares failed to pay allotment and first call money due from
him. His shares were forfeited. After this, the second and final call was made and the forfeited shares were
reissued as fully paid-up @ ` 8.50 per share.
Pass Journal entries and show the company’s Balance Sheet.
[Ans.: Capital Reserve—` 125; Balance Sheet Total—` 2,00,125.]
20. (a) X Ltd. forfeited 30 shares of ` 10 each fully called-up, held by Karim for non-payment of allotment
money of ` 3 per share and final call of ` 4 per share. He had paid the application money of ` 3 per
share. These shares were reissued to Salim for ` 8 per share. [Ans.: Capital Reserve—` 30.]
(b) X Ltd. forfeited 20 shares of ` 10 each, ` 7 called-up on which Mahesh had paid application and
allotment money of ` 5 per share. Of these, 15 shares were reissued to Naresh as fully paid-up for
` 6 per share. [Ans.: Capital Reserve—` 15.]
21. Wye Ltd. issued 20,000 shares of ` 20 each payable as:
On application ` 4 per share,
On allotment ` 4 per share,
On first call ` 6 per share,
On second and final call ` 6 per share.
All the amounts were received except the following:
A, 500 shares, has not paid allotment, first call and final call.
B, 300 shares, has not paid first call and final call.
C, 200 shares, has not paid final call.
All the above shares were forfeited and were reissued in the following manner:
Shares of A @ ` 18 per share, Shares of B @ ` 16 per share and Shares of C @ ` 15 per share.
Pass Journal entries regarding forfeiture and reissue of shares. [Ans.: Capital Reserve—` 4,000.]

22. X Ltd. issued 10,000 Equity Shares of ` 10 each, payable ` 3 on application, ` 3 on allotment and the balance
on two calls. All the calls were duly made and the amount so realised with the exception of the following:
(i) A holding 100 shares did not pay the amount due on first and final call, and
(ii) B holding 100 shares did not pay the amount due on final call.
All the shares were forfeited and reissued only 150 shares (all of A and balance of B) to D @ ` 8 per share.
Show the forfeiture and reissue entries. [Ans.: Capital Reserve—` 700.]
23. XYZ Ltd. forfeited 200 Equity Shares of ` 10 each issued at a premium of ` 5 per share, held by Shyam for
non-payment of allotment money of ` 8 per share (including share premium ` 5 per share), first call of
` 2 per share and final call of ` 3 per share. Out of these, 125 Equity Shares were reissued to Bhajanlal
@ ` 9 per share as fully paid-up.
Give the Journal entries to record forfeiture and reissue of shares. (AI 2003)
[Ans.: Capital Reserve—` 125.]