CBSE 2025 · Region 7 · Set 1 · Q23

Mayank Ltd. invited applications for issuing $\displaystyle 70,000$ equity shares of t $\displaystyle 100$ each. The amount was payable as follows : On Application - T $\displaystyle 20$ per share On Allotment - T $\displaystyle 40$ per share On First call - t $\displaystyle 20$ per share On Second and Final Call Balance Applications for $\displaystyle 1,00,000$ shares were received and allotment was made to all the applicants on pro-rata basis. Excess application money received with application was adjusted towards sums due on allotment. Jay, a shareholder who had applied for $\displaystyle 1,000$ shares, failed to pay the allotment money and his shares were forfeited immediately after the allotment. Afterwards the first call was made. Meenakshi, the shareholder of $\displaystyle 1,400$ shares, failed to pay the first call money and her shares were forfeited just after the first call. The second and final call has not been made. Pass necessary journal entries in the books of the company for the above transactions.

OR

Pass necessary journal entries for forfeiture and re-issue of shares for the following transactions : (i) Sierra Ltd. forfeited $\displaystyle 500$ shares of t $\displaystyle 10$ each, issued at a premium of T $\displaystyle 2$ per share (payable with allotment) for non-payment of allotment money of t $\displaystyle 5$ per share (including premium). The first and final call of T $\displaystyle 3$ per share was not made. All the forfeited shares were reissued at $\displaystyle 11$ per share, fully paid-up. (ii) Mahira Ltd. forfeited $\displaystyle 800$ shares of t $\displaystyle 10$ each on which first call of T $\displaystyle 3$ per share was not received. The second and final call of f $\displaystyle 2$ per share was not yet called. Out of these, $\displaystyle 400$ shares were reissued as $\displaystyle 8$ paid-up for $\displaystyle 7$ per share.