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Azar ltd forfeited 600 shares of rs 10 each fully called up held by ali 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 reissued to kaif for rs 8 per share . Give journal entries forr the forfeited and reissue of shares?
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Azar ltd forfeited 600 shares of rs 10 each fully called up held by al...
Journal entries for forfeiture and reissue of shares:

Forfeiture of shares:
Debit: Ali's account (600 x Rs 3) Rs 1800
Credit: Share forfeiture account Rs 1800
(To record the forfeiture of 600 shares held by Ali)

Reissue of shares:
Debit: Bank account Rs 4800 (600 x Rs 8)
Debit: Share forfeiture account Rs 1200 (600 x Rs 2)
Credit: Share capital account Rs 6000 (600 x Rs 10)
(To record the reissue of 600 forfeited shares to Kaif)

Explanation:
Forfeiture of shares means canceling the shares held by a shareholder due to non-payment of allotment money or final call money. In this case, Ali failed to pay the final call money of Rs 4 per share, so his 600 shares were forfeited.

The journal entry for forfeiture of shares debits the shareholder's account (Ali's account) and credits the share forfeiture account. The amount debited is the unpaid amount of final call money (600 x Rs 3 = Rs 1800).

After the forfeiture, the company can reissue the forfeited shares to a new shareholder. In this case, the 600 forfeited shares were reissued to Kaif for Rs 8 per share. The reissue price must be higher than the forfeited price. The journal entry for reissue of shares debits the bank account and the share forfeiture account and credits the share capital account. The amount debited to the bank account is the reissue price of shares (600 x Rs 8 = Rs 4800), and the amount debited to the share forfeiture account is the difference between the reissue price and the forfeited price (600 x Rs 2 = Rs 1200). The share capital account is credited for the face value of shares (600 x Rs 10 = Rs 6000).
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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.Total amount paid by G = __________.

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.20 On allotment Rs.50 (including premium) On first call Rs.30 On second and final call Rs.20 Applications 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 E’s forfeited shares being reissued. Q.Application money adjusted against allotment = __________. a.

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 refunded to shareholders = __________.

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Azar ltd forfeited 600 shares of rs 10 each fully called up held by ali 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 reissued to kaif for rs 8 per share . Give journal entries forr the forfeited and reissue of shares?
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Azar ltd forfeited 600 shares of rs 10 each fully called up held by ali 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 reissued to kaif for rs 8 per share . Give journal entries forr the forfeited and reissue of shares? 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 Azar ltd forfeited 600 shares of rs 10 each fully called up held by ali 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 reissued to kaif for rs 8 per share . Give journal entries forr the forfeited and reissue of shares? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Azar ltd forfeited 600 shares of rs 10 each fully called up held by ali 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 reissued to kaif for rs 8 per share . Give journal entries forr the forfeited and reissue of shares?.
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