Century Ltd. forfeited $\displaystyle 5,000$ shares of $\displaystyle 100$ each issued at $\displaystyle 40$% t premium for non-payment of allotment money of T $\displaystyle 35$ per share and first call of $\displaystyle 50$ per share (including premium T $\displaystyle 25$). The second and final call of $\displaystyle 40$ per share (including premium $\displaystyle 15$) has not yet been called. Out of these, $\displaystyle 3,000$ shares were reissued as fully paid-up for $\displaystyle 90$ per share. Pass necessary journal entries for forfeiture and reissue of forfeited shares in the books of Century Ltd.

OR

Almond Ltd. purchased a running business of Cashew Ltd. comprising of land and building ₹ $\displaystyle 85,00,000$, machinery ₹ $\displaystyle 50,00,000$ and sundry liabilities $\displaystyle 10,00,000$ for a purchase consideration of ₹ $\displaystyle 1,00,00$,000. Payment of ₹ $\displaystyle 10,00,000$ was made through a cheque and the remaining amount by issue of $\displaystyle 11$% Debentures of $\displaystyle 100$ each at a premium of $\displaystyle 20$%. Pass necessary journal entries for the above transactions in the books of Almond Ltd.

Books of Century Ltd. Journal Date Particulars L.F. Dr. Cr. Amount Amount (₹) (₹) Share Capital A/c Dr. $\displaystyle 3,75,000$ Securities Premium A/c Dr. $\displaystyle 1,25,000$ To Share Forfeiture A/c $\displaystyle 75,000$ To Share Allotment A/c $\displaystyle 1,75,000$ To Share first call A/c $\displaystyle 2,50,000$ ($\displaystyle 5000$ shares forfeited for non-payment of allotment and first call money) Or Share Capital A/c Dr. $\displaystyle 3,75,000$ Securities Premium A/c Dr. $\displaystyle 1,25,000$ To Share Forfeiture A/c $\displaystyle 75,000$ To Calls in Arrears A/c $\displaystyle 4,25,000$ ($\displaystyle 5000$ shares forfeited for non-payment of allotment and first call money) Bank A/c Dr. $\displaystyle 2,70,000$ Share forfeiture A/c Dr. $\displaystyle 30,000$ To Share Capital A/c $\displaystyle 3,00,000$ (Reissue of $\displaystyle 3,000$ shares of ₹ $\displaystyle 100$ each as fully paid for ₹ $\displaystyle 90$ per share) Share forfeiture A/c Dr. $\displaystyle 15,000$ To Capital Reserve A/c $\displaystyle 15,000$ (Gain on reissue of $\displaystyle 3,000$ forfeited shares transferred to capital reserve account) Q. (b) Almond Ltd. purchased a running business.… Ans. Books of Almond Ltd. Journal Date Particulars L. Dr. Cr. F. Amount Amount (₹) (₹) Land and Building A/c Dr. $\displaystyle 85,00,000$ Machinery A/c Dr. $\displaystyle 50,00,000$ To Sundry Liabilities A/c $\displaystyle 10,00,000$ To Cashew Ltd. $\displaystyle 1,00,00,000$ To Capital Reserve A/c $\displaystyle 25,00,000$ (Purchased business of Cashew Ltd.) Cashew Ltd. Dr. $\displaystyle 1,00,00,000$ To Bank A/c $\displaystyle 10,00,000$ To $\displaystyle 11$% Debentures A/c $\displaystyle 75,00,000$ To Securities Premium A/c $\displaystyle 15,00,000$ (Purchase consideration paid by cheque and $\displaystyle 11$% debentures issued at a premium of $\displaystyle 20$%) Alternatively: Cashew Ltd. Dr. $\displaystyle 10,00,000$ To Bank A/c $\displaystyle 10,00,000$ (Purchase consideration paid by cheque) Cashew Ltd. Dr. $\displaystyle 90,00,000$ To $\displaystyle 11$% Debentures A/c $\displaystyle 75,00,000$ To Securities Premium A/c $\displaystyle 15,00,000$ (Balance purchase consideration paid through issue of $\displaystyle 11$% debentures at a premium of $\displaystyle 20$%)