CBSE 2023 · Region 1 · Set 1 · Q23

Pass necessary journal entries for the forfeiture and reissue of shares in the following cases : (i) BCG Limited forfeited $\displaystyle 75$ shares of ₹ $\displaystyle 10$ each issued at a premium of ₹ $\displaystyle 4$ per share for non - payment of allotment money of ₹ $\displaystyle 8$ per share (including premium). The first and final call of ₹ $\displaystyle 4$ per share was not made. The forfeited shares were reissued at ₹ $\displaystyle 15$ per share fully paid. (ii) Geetika Limited forfeited $\displaystyle 1,200$ shares of ₹ $\displaystyle 50$ each issued at par for non-payment of final call of ₹ $\displaystyle 10$ per share. Out of these, $\displaystyle 900$ shares were reissued at ₹ $\displaystyle 45$ per share fully paid - up.

OR

Pushkar Limited invited applications for $\displaystyle 30,000$ shares of ₹ $\displaystyle 100$ each at $\displaystyle 20$% premium. The amount per share was payable as under : On application ₹ $\displaystyle 40$ (including ₹ $\displaystyle 10$ premium) On allotment ₹ $\displaystyle 30$ (including ₹ $\displaystyle 10$ premium) On first call ₹ $\displaystyle 30$ On second and final call Balance Applications were received for $\displaystyle 40,000$ shares and pro - rata allotment was made to the applicants for $\displaystyle 35,000$ shares, the remaining applications being refused. Excess application money was adjusted towards sums due on allotment. Yogesh, who applied for $\displaystyle 700$ shares, failed to pay the allotment money and his shares were forfeited immediately after allotment. First call was made thereafter and all the money due on first call was received. The second and final call was not made. Pass necessary journal entries for the above transactions in the books of Pushkar Limited.