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22. RTP Nov 2018 Mr. P who was the holder of 2,500 preference shares of 100 each, on which ₹ 70 per share has been called up could not pay his dues on Allotment and First call each at ₹ 20 per share. The Directors forfeited the above shares and reissued 2,000 of such shares to Mr. Q at ₹ 60 per share paid-up as 70 per share. You are required to prepare the Journal Entries to record the above forfeiture and re-issue in the books of the company.?
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22. RTP Nov 2018 Mr. P who was the holder of 2,500 preference shares o...
Journal entries for forfeiture and reissue of shares
Forfeiture of shares:
Dr. Share Capital Account (2,500 shares @ ₹100 each) 2,50,000
Cr. Share Allotment Account 50,000
Cr. Share First Call Account 50,000
Cr. Share Forfeiture Account (2,50,000 - 1,00,000) 1,50,000
Reissue of forfeited shares:
Dr. Bank Account 1,20,000
Dr. Share Forfeiture Account (2,000 shares @ ₹70 per share) 1,40,000
Cr. Share Capital Account (2,000 shares @ ₹100 each) 2,00,000
Cr. Securities Premium Account (₹40 per share) 80,000
Explanation:
Forfeiture of shares:
- The Share Capital Account is debited with the face value of the shares forfeited.
- Share Allotment Account and Share First Call Account are credited with the amount called but not paid on the shares.
- Share Forfeiture Account is credited with the excess amount received on the shares (i.e. face value - amount called but not paid).
Reissue of forfeited shares:
- Bank Account is debited with the amount received on reissue of forfeited shares.
- Share Forfeiture Account is debited with the amount transferred from it for reissue of forfeited shares.
- Share Capital Account is credited with the face value of the reissued shares.
- Securities Premium Account is credited with the excess amount received on reissue of forfeited shares (i.e. reissue price - face value).
Forfeiture of shares:
Dr. Share Capital Account (2,500 shares @ ₹100 each) 2,50,000
Cr. Share Allotment Account 50,000
Cr. Share First Call Account 50,000
Cr. Share Forfeiture Account (2,50,000 - 1,00,000) 1,50,000
Reissue of forfeited shares:
Dr. Bank Account 1,20,000
Dr. Share Forfeiture Account (2,000 shares @ ₹70 per share) 1,40,000
Cr. Share Capital Account (2,000 shares @ ₹100 each) 2,00,000
Cr. Securities Premium Account (₹40 per share) 80,000
Explanation:
Forfeiture of shares:
- The Share Capital Account is debited with the face value of the shares forfeited.
- Share Allotment Account and Share First Call Account are credited with the amount called but not paid on the shares.
- Share Forfeiture Account is credited with the excess amount received on the shares (i.e. face value - amount called but not paid).
Reissue of forfeited shares:
- Bank Account is debited with the amount received on reissue of forfeited shares.
- Share Forfeiture Account is debited with the amount transferred from it for reissue of forfeited shares.
- Share Capital Account is credited with the face value of the reissued shares.
- Securities Premium Account is credited with the excess amount received on reissue of forfeited shares (i.e. reissue price - face value).
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22. RTP Nov 2018 Mr. P who was the holder of 2,500 preference shares of 100 each, on which ₹ 70 per share has been called up could not pay his dues on Allotment and First call each at ₹ 20 per share. The Directors forfeited the above shares and reissued 2,000 of such shares to Mr. Q at ₹ 60 per share paid-up as 70 per share. You are required to prepare the Journal Entries to record the above forfeiture and re-issue in the books of the company.?
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22. RTP Nov 2018 Mr. P who was the holder of 2,500 preference shares of 100 each, on which ₹ 70 per share has been called up could not pay his dues on Allotment and First call each at ₹ 20 per share. The Directors forfeited the above shares and reissued 2,000 of such shares to Mr. Q at ₹ 60 per share paid-up as 70 per share. You are required to prepare the Journal Entries to record the above forfeiture and re-issue in the books of the company.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 22. RTP Nov 2018 Mr. P who was the holder of 2,500 preference shares of 100 each, on which ₹ 70 per share has been called up could not pay his dues on Allotment and First call each at ₹ 20 per share. The Directors forfeited the above shares and reissued 2,000 of such shares to Mr. Q at ₹ 60 per share paid-up as 70 per share. You are required to prepare the Journal Entries to record the above forfeiture and re-issue in the books of the company.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 22. RTP Nov 2018 Mr. P who was the holder of 2,500 preference shares of 100 each, on which ₹ 70 per share has been called up could not pay his dues on Allotment and First call each at ₹ 20 per share. The Directors forfeited the above shares and reissued 2,000 of such shares to Mr. Q at ₹ 60 per share paid-up as 70 per share. You are required to prepare the Journal Entries to record the above forfeiture and re-issue in the books of the company.?.
22. RTP Nov 2018 Mr. P who was the holder of 2,500 preference shares of 100 each, on which ₹ 70 per share has been called up could not pay his dues on Allotment and First call each at ₹ 20 per share. The Directors forfeited the above shares and reissued 2,000 of such shares to Mr. Q at ₹ 60 per share paid-up as 70 per share. You are required to prepare the Journal Entries to record the above forfeiture and re-issue in the books of the company.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 22. RTP Nov 2018 Mr. P who was the holder of 2,500 preference shares of 100 each, on which ₹ 70 per share has been called up could not pay his dues on Allotment and First call each at ₹ 20 per share. The Directors forfeited the above shares and reissued 2,000 of such shares to Mr. Q at ₹ 60 per share paid-up as 70 per share. You are required to prepare the Journal Entries to record the above forfeiture and re-issue in the books of the company.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 22. RTP Nov 2018 Mr. P who was the holder of 2,500 preference shares of 100 each, on which ₹ 70 per share has been called up could not pay his dues on Allotment and First call each at ₹ 20 per share. The Directors forfeited the above shares and reissued 2,000 of such shares to Mr. Q at ₹ 60 per share paid-up as 70 per share. You are required to prepare the Journal Entries to record the above forfeiture and re-issue in the books of the company.?.
Solutions for 22. RTP Nov 2018 Mr. P who was the holder of 2,500 preference shares of 100 each, on which ₹ 70 per share has been called up could not pay his dues on Allotment and First call each at ₹ 20 per share. The Directors forfeited the above shares and reissued 2,000 of such shares to Mr. Q at ₹ 60 per share paid-up as 70 per share. You are required to prepare the Journal Entries to record the above forfeiture and re-issue in the books of the company.? in English & in Hindi are available as part of our courses for CA Foundation.
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ample number of questions to practice 22. RTP Nov 2018 Mr. P who was the holder of 2,500 preference shares of 100 each, on which ₹ 70 per share has been called up could not pay his dues on Allotment and First call each at ₹ 20 per share. The Directors forfeited the above shares and reissued 2,000 of such shares to Mr. Q at ₹ 60 per share paid-up as 70 per share. You are required to prepare the Journal Entries to record the above forfeiture and re-issue in the books of the company.? tests, examples and also practice CA Foundation tests.
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