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Accountancy · 2024 · 6 marks
CBSE 2024 · Region 2 · Set 1 · Q26
Pass necessary journal entries for forfeiture and reissue of shares in the following cases : (i) Star Ltd. forfeited $\displaystyle 8,000$ shares of ₹ $\displaystyle 100$ each issued at $\displaystyle 10$% premium for non-payment of allotment money of ₹ $\displaystyle 40$ per share (including premium) and first call of ₹ $\displaystyle 30$ per share. The second and final call of ₹ $\displaystyle 20$ per share was not yet called. Out of these, $\displaystyle 6,000$ shares were reissued at ₹ $\displaystyle 80$ paid up for ₹ $\displaystyle 70$ per share. (ii) Premier Ltd. forfeited $\displaystyle 3,000$ shares of ₹ $\displaystyle 10$ each on which the first call of ₹ $\displaystyle 3$ per share was not received and the second and final call of ₹ $\displaystyle 2$ per share was not yet called. Out of these, $\displaystyle 2,000$ shares were reissued to Gita at ₹ $\displaystyle 8$ paid up for ₹ $\displaystyle 12$ per share.ORZee Ltd. invited applications for issuing $\displaystyle 40,000$ shares of ₹ $\displaystyle 10$ each at a premium of ₹ $\displaystyle 2$ per share. The amount was payable as follows : On Application ₹ $\displaystyle 4$ per share On Allotment ₹ $\displaystyle 5$ per share (including premium) On First call ₹ $\displaystyle 2$ per share On Second and Final call Balance Applications were received for $\displaystyle 60,000$ shares. Applications for $\displaystyle 12,000$ shares were rejected and money returned to the applicants. The shares were allotted on pro-rata basis to the applicants of $\displaystyle 48,000$ shares. The excess money received on application was adjusted towards sums due on allotment. All shareholders paid the allotment money except one shareholder who had applied for $\displaystyle 1,200$ shares. His shares were forfeited immediately after allotment. First call was made thereafter and all the money due was received. The second and final call was not yet made. Pass necessary journal entries for the above transactions in the books of Zee Ltd.
OR
Zee Ltd. invited applications for issuing $\displaystyle 40,000$ shares of ₹ $\displaystyle 10$ each at a premium of ₹ $\displaystyle 2$ per share. The amount was payable as follows : On Application ₹ $\displaystyle 4$ per share On Allotment ₹ $\displaystyle 5$ per share (including premium) On First call ₹ $\displaystyle 2$ per share On Second and Final call Balance Applications were received for $\displaystyle 60,000$ shares. Applications for $\displaystyle 12,000$ shares were rejected and money returned to the applicants. The shares were allotted on pro-rata basis to the applicants of $\displaystyle 48,000$ shares. The excess money received on application was adjusted towards sums due on allotment. All shareholders paid the allotment money except one shareholder who had applied for $\displaystyle 1,200$ shares. His shares were forfeited immediately after allotment. First call was made thereafter and all the money due was received. The second and final call was not yet made. Pass necessary journal entries for the above transactions in the books of Zee Ltd.Marking-scheme solution
(i)
Books of Star Ltd.
Journal
Date Particulars L.F Dr. Amount Cr. Amount
₹ ₹
Share Capital A/c Dr. $\displaystyle 6,40,000$
Securities Premium A/c Dr. $\displaystyle 80,000$
To Share Forfeiture A/c $\displaystyle 1,60,000$
To Calls in arrears A/c $\displaystyle 5,60,000$
($\displaystyle 8,000$ shares forfeited for non-payment
of allotment and 1st call money)
Alternatively,
Share Capital A/c Dr. $\displaystyle 6,40,000$
Securities Premium A/c Dr.
$\displaystyle 80,000$
To Share Forfeiture A/c $\displaystyle 1,60,000$
To Share Allotment A/c
$\displaystyle 3,20,000$
To Share First Call A/c
$\displaystyle 2,40,000$
($\displaystyle 8,000$ shares forfeited for non-payment
1st
of allotment and call money)
Bank A/c Dr. $\displaystyle 4,20,000$
Share Forfeiture A/c Dr. $\displaystyle 60,000$
To Share capital A/c $\displaystyle 4,80,000$
($\displaystyle 6,000$ shares reissued @ ₹$\displaystyle 70$, ₹$\displaystyle 80$ paid
up)
Share Forfeiture A/c Dr. $\displaystyle 60,000$
To Capital Reserve A/c $\displaystyle 60,000$
(Gain on reissue of $\displaystyle 6,000$ shares
transferred to capital reserve)
(ii)
Books of Premier Ltd.
Journal
Date Particulars L.F Dr. Amount Cr. Amount
₹ ₹
Share Capital A/c Dr. $\displaystyle 24,000$
To Share Forfeiture A/c $\displaystyle 15,000$
To Calls in arrears A/c $\displaystyle 9,000$
($\displaystyle 3,000$ shares forfeited for non-payment
of 1st call money)
Alternatively,
Share Capital A/c Dr. $\displaystyle 24,000$
To Share Forfeiture A/c $\displaystyle 15,000$
To Share First Call A/c $\displaystyle 9,000$
($\displaystyle 3,000$ shares forfeited for non-payment
of 1st call money)
Bank A/c Dr. $\displaystyle 24,000$
$\displaystyle 16,000$
To Share Capital A/c
$\displaystyle 8,000$
To Securities Premium A/c
($\displaystyle 2,000$ shares reissued for ₹$\displaystyle 12$ per share,
₹$\displaystyle 8$ paid up)
Share Forfeiture A/c Dr. $\displaystyle 10,000$
To Capital Reserve A/c $\displaystyle 10,000$
(Gain on reissue of $\displaystyle 2,000$ shares
transferred to capital reserve)
Q.(b) Zee ltd. invited applications.........................................
Ans. Books of Zee Ltd.
Journal
Date Particulars L.F Dr. Amount Cr. Amount
₹ ₹
Bank A/c Dr. $\displaystyle 2,40,000$
To Share Application A/c $\displaystyle 2,40,000$
(Application money received on $\displaystyle 60,000$
shares)
Share Application A/c Dr. $\displaystyle 2,40,000$
To Share Capital A/c $\displaystyle 1,60,000$
To Share Allotment A/c $\displaystyle 32,000$
To Bank A/c $\displaystyle 48,000$
(Application money transferred to share
capital A/c, excess money received
adjusted towards allotment and refunded)
Share Allotment A/c Dr. $\displaystyle 2,00,000$
To Share Capital A/c $\displaystyle 1,20,000$
To Securities Premium A/c $\displaystyle 80,000$
(Amount due on allotment)
Bank A/c Dr. $\displaystyle 1,63,800$
Calls in arrears A/c Dr. $\displaystyle 4,200$
To Share Allotment A/c $\displaystyle 1,68,000$
(Allotment money received, except on
$\displaystyle 1,000$ shares)
Alternatively,
Bank A/c Dr. $\displaystyle 1,63,800$
To Share Allotment A/c
$\displaystyle 1,63,800$
(Allotment money received, except on
$\displaystyle 1,000$ shares)
Share Capital A/c Dr. $\displaystyle 7,000$
Securities Premium A/c Dr. $\displaystyle 2,000$
To Share Forfeiture A/c $\displaystyle 4,800$
To Calls in Arrears A/c $\displaystyle 4,200$
($\displaystyle 1,000$ shares forfeited for non-payment of
allotment money)
Alternatively,
Share Capital A/c Dr. $\displaystyle 7,000$
Securities Premium A/c Dr. $\displaystyle 2,000$
To Share Forfeiture A/c $\displaystyle 4,800$
To Share Allotment A/c $\displaystyle 4,200$
($\displaystyle 1,000$ shares forfeited for non-payment of
allotment money)
Share First Call A/c Dr. $\displaystyle 78,000$
To Share Capital A/c $\displaystyle 78,000$
(Amount due on First call on $\displaystyle 39,000$
shares)
Bank A/c Dr. $\displaystyle 78,000$
To Share First Call A/c $\displaystyle 78,000$
(First call money received, except on $\displaystyle 1,000$
shares)
PART-B
OPTION-I
(ANALYSIS OF FINANCIAL STATEMENTS)
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CBSE Class 12 Accountancy past-paper question from the 2024board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.