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Accountancy · 2024 · 6 marks
CBSE 2024 · Region 3 · Set 1 · Q25
Pass necessary journal entries for forfeiture and reissue of shares in the following cases: (i) Neon Ltd. forfeited 2,000 shares of ₹ 10 each issued…
Pass necessary journal entries for forfeiture and reissue of shares in the following cases : (i) Neon Ltd. forfeited $\displaystyle 2,000$ shares of ₹ $\displaystyle 10$ each issued at a premium of ₹ $\displaystyle 2$ per share for non-payment of allotment money of ₹ $\displaystyle 5$ per share (including premium). The first and final call of ₹ $\displaystyle 2$ per share was not yet made. Out of these, $\displaystyle 1,500$ shares were reissued at ₹ $\displaystyle 7$ per share, ₹ $\displaystyle 8$ paid up. (ii) Mamta Ltd. forfeited $\displaystyle 3,000$ shares of ₹ $\displaystyle 10$ each on which the first call of ₹ $\displaystyle 3$ per share was not received. The second and final call of ₹ $\displaystyle 1$ per share was not yet called. Out of these, $\displaystyle 2,000$ shares were reissued at ₹ $\displaystyle 9$ per share, ₹ $\displaystyle 9$ paid up.
Sai Ltd. invited applications for issuing $\displaystyle 60,000$ shares of ₹ $\displaystyle 10$ each. The amount was payable as follows : On application ₹ $\displaystyle 5$ per share On allotment ₹ $\displaystyle 1$ per share On first and final call Balance Applications were received for $\displaystyle 58,000$ shares. Rajat, the holder of $\displaystyle 300$ shares, did not pay allotment money and Usha, the holder of $\displaystyle 500$ shares, paid her entire share money along with allotment money. Rajat s shares were forfeited immediately after allotment. First and final call was made afterwards and duly received. Pass necessary journal entries for the above transactions. 'C $\displaystyle 1$ 'C $\displaystyle 7$ Open alls-in-arrears and alls-in-advance Account, wherever required.
Marking-scheme solution
(i)
Books of Neon Ltd.
JOURNAL
Date Particulars L.F. Dr. Cr.
Amount ( ₹) Amount ( ₹)
Share Capital A/c Dr. $\displaystyle 16,000$
Securities Premium A/c Dr. $\displaystyle 4,000$
To Share Forfeiture A/c $\displaystyle 10,000$
To Calls in Arrears A/c or $\displaystyle 10,000$
Share Allotment A/c
(Forfeiture of $\displaystyle 2,000$ shares for non-
payment of allotment of ₹$\displaystyle 5$ per share.)
Bank A/c Dr. $\displaystyle 10,500$
Share Forfeiture A/c Dr. $\displaystyle 1,500$
To Share Capital A/c $\displaystyle 12,000$
(Reissue of $\displaystyle 1,500$ shares at ₹$\displaystyle 7$ per share, ₹$\displaystyle 8$
per share paid up.)
Share Forfeiture A/c Dr. $\displaystyle 6,000$
To Capital Reserve A/c $\displaystyle 6,000$
(Gain on $\displaystyle 1,500$ reissued shares transferred
to capital reserve.)
(ii)
Books of Mamta Ltd.
JOURNAL
Date Particulars L.F. Dr. Cr.
Amount ( ₹) Amount ( ₹)
Share Capital A/c Dr. $\displaystyle 27,000$
To Share Forfeiture A/c $\displaystyle 18,000$
To Calls in Arrears A/c or $\displaystyle 9,000$
Share First Call A/c
(Forfeiture of $\displaystyle 3,000$ shares for non-payment
of first call of ₹$\displaystyle 3$ per share.)
Bank A/c Dr. $\displaystyle 18,000$
To Share Capital A/c $\displaystyle 18,000$
(Reissue of $\displaystyle 2,000$ shares at ₹$\displaystyle 9$ per share,
₹$\displaystyle 9$ per share paid up.)
Share Forfeiture A/c Dr. $\displaystyle 12,000$
To Capital Reserve A/c $\displaystyle 12,000$
(Gain on $\displaystyle 2,000$ reissued shares transferred
to capital reserve.)
Q. Sai Ltd. invited applications ……………………………….
Ans
Books of Sai Ltd.
JOURNAL
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
Bank A/c Dr. $\displaystyle 2,90,000$
To Share Application A/c $\displaystyle 2,90,000$
(Application amount received on $\displaystyle 58,000$ shares.)
Share Application A/c Dr. $\displaystyle 2,90,000$
To Share Capital A/c $\displaystyle 2,90,000$
(Application amount transferred to share capital.)
Share Allotment A/c Dr. $\displaystyle 58,000$
To Share Capital A/c $\displaystyle 58,000$
(Allotment amount due on $\displaystyle 58,000$ shares.)
Bank A/c Dr. $\displaystyle 59,700$
Calls in Arrears A/c Dr. $\displaystyle 300$
To Share Allotment A/c $\displaystyle 58,000$
To Calls in Advance A/c $\displaystyle 2,000$
(Allotment amount received, calls in arrears debited
and calls in advance received.)
Share Capital A/c Dr. $\displaystyle 1,800$
To Share Forfeiture A/c $\displaystyle 1,500$
To Calls in Arrears A/c $\displaystyle 300$
($\displaystyle 300$ shares forfeited due to non-payment of
allotment money.)
Share First and Final Call A/c Dr. $\displaystyle 2,30,800$
To Share Capital A/c $\displaystyle 2,30,800$
(Final call amount due on $\displaystyle 57,700$ shares.)
Bank A/c Dr. $\displaystyle 2,28,800$
Calls in Advance A/c Dr. $\displaystyle 2,000$
To Share First and Final Call A/c $\displaystyle 2,30,800$
(Final call received and calls in advance adjusted.)
Advance.
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CBSE Class 12 Accountancy past-paper question from the 2024 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.