CBSE 2023 · Region 5 · Set 2 · Q24

Vani Limited invited applications for issuing $\displaystyle 1,00,000$ equity shares of ₹ $\displaystyle 10$ each at a premium of $\displaystyle 10$%. The amounts were payable as under : On Application and Allotment - ₹ $\displaystyle 4$ per share (including premium ?$\displaystyle 1$) On first call - ₹ $\displaystyle 4$ per share On second and final call - ₹ $\displaystyle 3$ per share Applications for $\displaystyle 1,50,000$ shares were received and pro-rata allotment was made to all the applicants. Excess application money was adjusted towards sums due on calls. Parth, a shareholder who had applied for $\displaystyle 600$ shares did not pay the first call. His shares were forfeited. The second and final call was not yet made. Half of the forfeited shares were reissued at ₹ $\displaystyle 8$ per share fully paid up . Journalise the above transactions in the books of Vani Limited by opening calls in arrears and calls in advance account wherever necessary.

OR

Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following cases : (i) Vipin Ltd. forfeited $\displaystyle 10,000$ shares of ₹ $\displaystyle 10$ each issued at a premium of ₹ $\displaystyle 1$ per share, for non-payment of second and final call of ₹ $\displaystyle 2$ per share. Out of these, $\displaystyle 60$% of the shares were reissued at ₹ $\displaystyle 7$ per share fully paid up. (ii) Deepak Ltd. forfeited $\displaystyle 800$ shares of ₹ $\displaystyle 10$ each, ₹ $\displaystyle 8$ per share called up, for non-payment of first call of ₹ $\displaystyle 3$ per share. All the forfeited shares were reissued for ₹ $\displaystyle 12$ per share fully paid.