CBSE 2026 · Region 2 · Set 2 · Q26

Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following cases : (i) Sanya Ltd. forfeited $\displaystyle 2,000$ shares of ₹ $\displaystyle 10$ each, issued at a premium of ₹ $\displaystyle 2$ per share, ₹ $\displaystyle 8$ called up, for non-payment of allotment money of ₹ $\displaystyle 5$ per share (including premium). Out of these, $\displaystyle 700$ shares were reissued to Dev as ₹ $\displaystyle 8$ paid up for ₹ $\displaystyle 10$ per share. (ii) Modish Ltd. forfeited $\displaystyle 5,000$ shares of ₹ $\displaystyle 10$ each on which first call of ₹ $\displaystyle 3$ per share was not received. The second and final call of $\displaystyle 5$ $\displaystyle 2$ per share has not yet been called. Out of these, $\displaystyle 2,000$ shares were issued to Geeta as ₹ $\displaystyle 8$ paid up for ₹ $\displaystyle 7$ per share.

OR

Raga Ltd. invited applications for issuing $\displaystyle 85,000$ equity shares of ₹ $\displaystyle 100$ each at par. The amount was payable as follows : On Application - ₹ $\displaystyle 30$ per share On Allotment - ₹ $\displaystyle 40$ per share On First and final call - balance Applications were received for $\displaystyle 80,000$ shares and allotment was made to all the applicants in full. When the allotment was due, one shareholder failed to pay the amount on $\displaystyle 300$ shares held by him and another shareholder holding $\displaystyle 500$ shares paid the entire amount on his shares. The first and final call was duly received, along with arrears of allotment. Pass necessary journal entries for the above transactions in the books of Raga Ltd. Open 'Calls in Arrears Account' and 'Calls in Advance Account' wherever necessary.