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Give necessary journal entries for the forfeiture and re-issue of shares: (20 MARKS) (i) Akhil Pvt. Ltd. forfeited 9,000 shares of Rs. 10 each fully called up, held by Aditya for non-payment of allotment money of Rs. 3 per share and final call of Rs. 4 per share. He paid the application money of Rs. 3 per share. These shares were re-issued to Katen for Rs. 8 per share.?
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Give necessary journal entries for the forfeiture and re-issue of shar...
Journal entries for forfeiture and re-issue of shares are as follows:

Forfeiture of Shares:
When the shares are forfeited due to non-payment of allotment or call money, the following journal entries are required:

1. Forfeiture of shares:
Bank Account Dr. (No. of shares x call amount)
Share Forfeiture Account Cr. (Nominal value of shares forfeited)
Share Capital Account Cr. (Fully paid-up value of shares forfeited)

2. Reconciliation of share capital account:
Share Forfeiture Account Dr. (Fully paid-up value of shares forfeited)
Share Capital Account Cr. (Fully paid-up value of shares forfeited)

Re-issue of Shares:
When the forfeited shares are re-issued to another person, the following journal entries are required:

1. Re-issue of shares:
Bank Account Dr. (No. of shares x re-issue price)
Share Forfeiture Account Cr. (Nominal value of shares re-issued)
Share Capital Account Cr. (Fully paid-up value of shares re-issued)

2. Reconciliation of share capital account:
Share Forfeiture Account Dr. (Fully paid-up value of shares re-issued)
Share Capital Account Cr. (Fully paid-up value of shares re-issued)

Example:
Akhil Pvt. Ltd. forfeited 9,000 shares of Rs. 10 each fully called up, held by Aditya for non-payment of allotment money of Rs. 3 per share and final call of Rs. 4 per share. He paid the application money of Rs. 3 per share. These shares were re-issued to Katen for Rs. 8 per share.

1. Forfeiture of Shares:
Bank Account Dr. (9,000 x 7) 63,000
Share Forfeiture Account Cr. (9,000 x 10) 90,000
Share Capital Account Cr. (9,000 x 10) 90,000

2. Reconciliation of share capital account:
Share Forfeiture Account Dr. 90,000
Share Capital Account Cr. 90,000

2. Re-issue of Shares:
Bank Account Dr. (9,000 x 8) 72,000
Share Forfeiture Account Cr. (9,000 x 10) 90,000
Share Capital Account Cr. (9,000 x 10) 90,000

2. Reconciliation of share capital account:
Share Forfeiture Account Dr. 90,000
Share Capital Account Cr. 90,000

In conclusion, forfeiture and re-issue of shares involve specific journal entries to be recorded in the company's books of accounts. It is essential to follow the correct procedure to maintain the accuracy of the company's financial records.
Community Answer
Give necessary journal entries for the forfeiture and re-issue of shar...
Bank a/c. Dr 27000
To share app a/c 27000
[ Being application amount received]

share application a/c. Dr. 27000
To share capital a/c. 27000
[being application amounts transfer to capital amount]

share allotment a/c. Dr. 27000
to share capital a/c. 27000
[being due to allotment amount]

Bank a/c. Dr. 000
to share allotment a/c. 000
[being allotment amount not received]
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D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20On allotment Rs.50 (including premium)On first call Rs.30On second and final call Rs.20Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of Es forfeited shares being reissued.Q.Amount transferred to Share forfeiture account at the time of forfeiting Fs shares = _________.

D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20On allotment Rs.50 (including premium)On first call Rs.30On second and final call Rs.20Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of Es forfeited shares being reissued.Q.Amount transferred to Share forfeiture account at the time of forfeiting Es shares = _________.

D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20On allotment Rs.50 (including premium)On first call Rs.30On second and final call Rs.20Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of Es forfeited shares being reissued.Q.Net balance in Share Forfeiture Account = ________.

D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20On allotment Rs.50 (including premium)On first call Rs.30On second and final call Rs.20Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of Es forfeited shares being reissued..Q.Net balance in Capital Reserve Account = ________.

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Give necessary journal entries for the forfeiture and re-issue of shares: (20 MARKS) (i) Akhil Pvt. Ltd. forfeited 9,000 shares of Rs. 10 each fully called up, held by Aditya for non-payment of allotment money of Rs. 3 per share and final call of Rs. 4 per share. He paid the application money of Rs. 3 per share. These shares were re-issued to Katen for Rs. 8 per share.?
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Give necessary journal entries for the forfeiture and re-issue of shares: (20 MARKS) (i) Akhil Pvt. Ltd. forfeited 9,000 shares of Rs. 10 each fully called up, held by Aditya for non-payment of allotment money of Rs. 3 per share and final call of Rs. 4 per share. He paid the application money of Rs. 3 per share. These shares were re-issued to Katen for Rs. 8 per share.? 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 Give necessary journal entries for the forfeiture and re-issue of shares: (20 MARKS) (i) Akhil Pvt. Ltd. forfeited 9,000 shares of Rs. 10 each fully called up, held by Aditya for non-payment of allotment money of Rs. 3 per share and final call of Rs. 4 per share. He paid the application money of Rs. 3 per share. These shares were re-issued to Katen for Rs. 8 per share.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Give necessary journal entries for the forfeiture and re-issue of shares: (20 MARKS) (i) Akhil Pvt. Ltd. forfeited 9,000 shares of Rs. 10 each fully called up, held by Aditya for non-payment of allotment money of Rs. 3 per share and final call of Rs. 4 per share. He paid the application money of Rs. 3 per share. These shares were re-issued to Katen for Rs. 8 per share.?.
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