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Pass journal entries for the forfeiture and re-issue in the following cases: (1) A Ltd. forfeited 100 shares of 10 each fully called-up for non-payment of first call of 3 per share and final call of *3 per share. All of these shares were re-issued as fully paid for 10 per share. (ii) B Ltd. forfeited 400 shares of ₹10 each fully called-up for non-payment of final call of *3 per share. 300 of these shares were re-issued as fully paid for 78 per share.?
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Pass journal entries for the forfeiture and re-issue in the following ...
Journal Entries for Forfeiture and Re-issue of Shares
Case 1: A Ltd. forfeited 100 shares of 10 each fully called-up for non-payment of first call of 3 per share and final call of 3 per share. All of these shares were re-issued as fully paid for 10 per share.
The following journal entries will be passed in the books of A Ltd.:
Forfeiture:
Bank A/c Dr. ---------1000
Share Capital A/c ---------1000
(Being first and final call of 3 per share on 100 shares forfeited)
Share Forfeited A/c Dr. ---------1000
Share Capital A/c ---------1000
(Being the forfeiture of 100 shares of 10 each)
Re-issue:
Bank A/c Dr. ---------1000
Share Forfeited A/c ---------1000
(Being the receipt of application money on re-issue of forfeited shares)
Bank A/c Dr. ---------1000
Share Capital A/c ---------1000
(Being the allotment of forfeited shares)
Case 2: B Ltd. forfeited 400 shares of 10 each fully called-up for non-payment of final call of 3 per share. 300 of these shares were re-issued as fully paid for 78 per share.
The following journal entries will be passed in the books of B Ltd.:
Forfeiture:
Bank A/c Dr. ---------1200
Share Capital A/c ---------1200
(Being final call of 3 per share on 400 shares forfeited)
Share Forfeited A/c Dr. ---------4000
Share Capital A/c ---------4000
(Being the forfeiture of 400 shares of 10 each)
Re-issue:
Bank A/c Dr. ---------23400
Share Forfeited A/c ---------23400
(Being the receipt of application money on re-issue of 300 shares)
Share Forfeited A/c Dr. ---------7800
Share Capital A/c ---------7800
(Being the allotment of 300 shares at 78 per share)
Conclusion:
Forfeiture of shares happens when shareholders fail to pay the calls due on their shares. The company then forfeits the shares and re-issues them to new shareholders. The journal entries for forfeiture and re-issue of shares are important to maintain accurate accounting records and to comply with legal requirements.
Case 1: A Ltd. forfeited 100 shares of 10 each fully called-up for non-payment of first call of 3 per share and final call of 3 per share. All of these shares were re-issued as fully paid for 10 per share.
The following journal entries will be passed in the books of A Ltd.:
Forfeiture:
Bank A/c Dr. ---------1000
Share Capital A/c ---------1000
(Being first and final call of 3 per share on 100 shares forfeited)
Share Forfeited A/c Dr. ---------1000
Share Capital A/c ---------1000
(Being the forfeiture of 100 shares of 10 each)
Re-issue:
Bank A/c Dr. ---------1000
Share Forfeited A/c ---------1000
(Being the receipt of application money on re-issue of forfeited shares)
Bank A/c Dr. ---------1000
Share Capital A/c ---------1000
(Being the allotment of forfeited shares)
Case 2: B Ltd. forfeited 400 shares of 10 each fully called-up for non-payment of final call of 3 per share. 300 of these shares were re-issued as fully paid for 78 per share.
The following journal entries will be passed in the books of B Ltd.:
Forfeiture:
Bank A/c Dr. ---------1200
Share Capital A/c ---------1200
(Being final call of 3 per share on 400 shares forfeited)
Share Forfeited A/c Dr. ---------4000
Share Capital A/c ---------4000
(Being the forfeiture of 400 shares of 10 each)
Re-issue:
Bank A/c Dr. ---------23400
Share Forfeited A/c ---------23400
(Being the receipt of application money on re-issue of 300 shares)
Share Forfeited A/c Dr. ---------7800
Share Capital A/c ---------7800
(Being the allotment of 300 shares at 78 per share)
Conclusion:
Forfeiture of shares happens when shareholders fail to pay the calls due on their shares. The company then forfeits the shares and re-issues them to new shareholders. The journal entries for forfeiture and re-issue of shares are important to maintain accurate accounting records and to comply with legal requirements.
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Pass journal entries for the forfeiture and re-issue in the following ...
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Pass journal entries for the forfeiture and re-issue in the following cases: (1) A Ltd. forfeited 100 shares of 10 each fully called-up for non-payment of first call of 3 per share and final call of *3 per share. All of these shares were re-issued as fully paid for 10 per share. (ii) B Ltd. forfeited 400 shares of ₹10 each fully called-up for non-payment of final call of *3 per share. 300 of these shares were re-issued as fully paid for 78 per share.?
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Pass journal entries for the forfeiture and re-issue in the following cases: (1) A Ltd. forfeited 100 shares of 10 each fully called-up for non-payment of first call of 3 per share and final call of *3 per share. All of these shares were re-issued as fully paid for 10 per share. (ii) B Ltd. forfeited 400 shares of ₹10 each fully called-up for non-payment of final call of *3 per share. 300 of these shares were re-issued as fully paid for 78 per share.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Pass journal entries for the forfeiture and re-issue in the following cases: (1) A Ltd. forfeited 100 shares of 10 each fully called-up for non-payment of first call of 3 per share and final call of *3 per share. All of these shares were re-issued as fully paid for 10 per share. (ii) B Ltd. forfeited 400 shares of ₹10 each fully called-up for non-payment of final call of *3 per share. 300 of these shares were re-issued as fully paid for 78 per share.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Pass journal entries for the forfeiture and re-issue in the following cases: (1) A Ltd. forfeited 100 shares of 10 each fully called-up for non-payment of first call of 3 per share and final call of *3 per share. All of these shares were re-issued as fully paid for 10 per share. (ii) B Ltd. forfeited 400 shares of ₹10 each fully called-up for non-payment of final call of *3 per share. 300 of these shares were re-issued as fully paid for 78 per share.?.
Pass journal entries for the forfeiture and re-issue in the following cases: (1) A Ltd. forfeited 100 shares of 10 each fully called-up for non-payment of first call of 3 per share and final call of *3 per share. All of these shares were re-issued as fully paid for 10 per share. (ii) B Ltd. forfeited 400 shares of ₹10 each fully called-up for non-payment of final call of *3 per share. 300 of these shares were re-issued as fully paid for 78 per share.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Pass journal entries for the forfeiture and re-issue in the following cases: (1) A Ltd. forfeited 100 shares of 10 each fully called-up for non-payment of first call of 3 per share and final call of *3 per share. All of these shares were re-issued as fully paid for 10 per share. (ii) B Ltd. forfeited 400 shares of ₹10 each fully called-up for non-payment of final call of *3 per share. 300 of these shares were re-issued as fully paid for 78 per share.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Pass journal entries for the forfeiture and re-issue in the following cases: (1) A Ltd. forfeited 100 shares of 10 each fully called-up for non-payment of first call of 3 per share and final call of *3 per share. All of these shares were re-issued as fully paid for 10 per share. (ii) B Ltd. forfeited 400 shares of ₹10 each fully called-up for non-payment of final call of *3 per share. 300 of these shares were re-issued as fully paid for 78 per share.?.
Solutions for Pass journal entries for the forfeiture and re-issue in the following cases: (1) A Ltd. forfeited 100 shares of 10 each fully called-up for non-payment of first call of 3 per share and final call of *3 per share. All of these shares were re-issued as fully paid for 10 per share. (ii) B Ltd. forfeited 400 shares of ₹10 each fully called-up for non-payment of final call of *3 per share. 300 of these shares were re-issued as fully paid for 78 per share.? in English & in Hindi are available as part of our courses for B Com.
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Here you can find the meaning of Pass journal entries for the forfeiture and re-issue in the following cases: (1) A Ltd. forfeited 100 shares of 10 each fully called-up for non-payment of first call of 3 per share and final call of *3 per share. All of these shares were re-issued as fully paid for 10 per share. (ii) B Ltd. forfeited 400 shares of ₹10 each fully called-up for non-payment of final call of *3 per share. 300 of these shares were re-issued as fully paid for 78 per share.? defined & explained in the simplest way possible. Besides giving the explanation of
Pass journal entries for the forfeiture and re-issue in the following cases: (1) A Ltd. forfeited 100 shares of 10 each fully called-up for non-payment of first call of 3 per share and final call of *3 per share. All of these shares were re-issued as fully paid for 10 per share. (ii) B Ltd. forfeited 400 shares of ₹10 each fully called-up for non-payment of final call of *3 per share. 300 of these shares were re-issued as fully paid for 78 per share.?, a detailed solution for Pass journal entries for the forfeiture and re-issue in the following cases: (1) A Ltd. forfeited 100 shares of 10 each fully called-up for non-payment of first call of 3 per share and final call of *3 per share. All of these shares were re-issued as fully paid for 10 per share. (ii) B Ltd. forfeited 400 shares of ₹10 each fully called-up for non-payment of final call of *3 per share. 300 of these shares were re-issued as fully paid for 78 per share.? has been provided alongside types of Pass journal entries for the forfeiture and re-issue in the following cases: (1) A Ltd. forfeited 100 shares of 10 each fully called-up for non-payment of first call of 3 per share and final call of *3 per share. All of these shares were re-issued as fully paid for 10 per share. (ii) B Ltd. forfeited 400 shares of ₹10 each fully called-up for non-payment of final call of *3 per share. 300 of these shares were re-issued as fully paid for 78 per share.? theory, EduRev gives you an
ample number of questions to practice Pass journal entries for the forfeiture and re-issue in the following cases: (1) A Ltd. forfeited 100 shares of 10 each fully called-up for non-payment of first call of 3 per share and final call of *3 per share. All of these shares were re-issued as fully paid for 10 per share. (ii) B Ltd. forfeited 400 shares of ₹10 each fully called-up for non-payment of final call of *3 per share. 300 of these shares were re-issued as fully paid for 78 per share.? tests, examples and also practice B Com tests.
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