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ABC Lad, forfeited 200 equity shares of 10 each issued at a premium of 2 per share, for non-payment of allotment money of 5 per share (including premium), first call of 4 and final call of 1. Out of these, 100 equity shares were reissued at 13 per share. Give journal entries in the books of the company for recording forfeiture and reissue of shares. [Ans. Capital Reserve ₹200, securities premium reserve on reissue of shares ₹300?
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ABC Lad, forfeited 200 equity shares of 10 each issued at a premium of...
Forfeiture of Shares:
- When ABC Lad forfeited the shares, the company needed to record this action in its books. The journal entry for the forfeiture of shares is as follows:
Equity Share Capital A/c Dr 2000
Securities Premium A/c Dr 400
Share Allotment A/c Dr 300
Capital Reserve A/c Cr 2000
Securities Premium Reserve A/c Cr 200
Share Allotment A/c Cr 300
- The above entry records the forfeiture of 200 equity shares at a premium of 2 per share.
Reissue of Shares:
- After forfeiting the shares, 100 equity shares were reissued at 13 per share. The journal entry for the reissue of shares is as follows:
Bank A/c Dr 1300
Share Forfeited A/c Dr 500
Equity Share Capital A/c Cr 1000
Securities Premium Reserve A/c Cr 300
Share Forfeited A/c Cr 500
- The above entry records the reissue of 100 equity shares at a price of 13 per share.
Explanation:
- The Capital Reserve account is credited with the nominal value of forfeited shares to indicate that the share capital has been reduced.
- The Securities Premium Reserve account is credited with the premium amount realized on reissue of shares to indicate the utilization of the premium amount.
- The Share Allotment account is debited with the amount not paid by the shareholder to indicate the non-payment of allotment money.
- The Share Forfeited account is credited with the nominal value of forfeited shares to reflect the forfeiture of shares.
- The Bank account is debited with the amount received from the reissue of shares to indicate the inflow of cash.
- When ABC Lad forfeited the shares, the company needed to record this action in its books. The journal entry for the forfeiture of shares is as follows:
Equity Share Capital A/c Dr 2000
Securities Premium A/c Dr 400
Share Allotment A/c Dr 300
Capital Reserve A/c Cr 2000
Securities Premium Reserve A/c Cr 200
Share Allotment A/c Cr 300
- The above entry records the forfeiture of 200 equity shares at a premium of 2 per share.
Reissue of Shares:
- After forfeiting the shares, 100 equity shares were reissued at 13 per share. The journal entry for the reissue of shares is as follows:
Bank A/c Dr 1300
Share Forfeited A/c Dr 500
Equity Share Capital A/c Cr 1000
Securities Premium Reserve A/c Cr 300
Share Forfeited A/c Cr 500
- The above entry records the reissue of 100 equity shares at a price of 13 per share.
Explanation:
- The Capital Reserve account is credited with the nominal value of forfeited shares to indicate that the share capital has been reduced.
- The Securities Premium Reserve account is credited with the premium amount realized on reissue of shares to indicate the utilization of the premium amount.
- The Share Allotment account is debited with the amount not paid by the shareholder to indicate the non-payment of allotment money.
- The Share Forfeited account is credited with the nominal value of forfeited shares to reflect the forfeiture of shares.
- The Bank account is debited with the amount received from the reissue of shares to indicate the inflow of cash.
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ABC Lad, forfeited 200 equity shares of 10 each issued at a premium of 2 per share, for non-payment of allotment money of 5 per share (including premium), first call of 4 and final call of 1. Out of these, 100 equity shares were reissued at 13 per share. Give journal entries in the books of the company for recording forfeiture and reissue of shares. [Ans. Capital Reserve ₹200, securities premium reserve on reissue of shares ₹300?
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ABC Lad, forfeited 200 equity shares of 10 each issued at a premium of 2 per share, for non-payment of allotment money of 5 per share (including premium), first call of 4 and final call of 1. Out of these, 100 equity shares were reissued at 13 per share. Give journal entries in the books of the company for recording forfeiture and reissue of shares. [Ans. Capital Reserve ₹200, securities premium reserve on reissue of shares ₹300? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about ABC Lad, forfeited 200 equity shares of 10 each issued at a premium of 2 per share, for non-payment of allotment money of 5 per share (including premium), first call of 4 and final call of 1. Out of these, 100 equity shares were reissued at 13 per share. Give journal entries in the books of the company for recording forfeiture and reissue of shares. [Ans. Capital Reserve ₹200, securities premium reserve on reissue of shares ₹300? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for ABC Lad, forfeited 200 equity shares of 10 each issued at a premium of 2 per share, for non-payment of allotment money of 5 per share (including premium), first call of 4 and final call of 1. Out of these, 100 equity shares were reissued at 13 per share. Give journal entries in the books of the company for recording forfeiture and reissue of shares. [Ans. Capital Reserve ₹200, securities premium reserve on reissue of shares ₹300?.
ABC Lad, forfeited 200 equity shares of 10 each issued at a premium of 2 per share, for non-payment of allotment money of 5 per share (including premium), first call of 4 and final call of 1. Out of these, 100 equity shares were reissued at 13 per share. Give journal entries in the books of the company for recording forfeiture and reissue of shares. [Ans. Capital Reserve ₹200, securities premium reserve on reissue of shares ₹300? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about ABC Lad, forfeited 200 equity shares of 10 each issued at a premium of 2 per share, for non-payment of allotment money of 5 per share (including premium), first call of 4 and final call of 1. Out of these, 100 equity shares were reissued at 13 per share. Give journal entries in the books of the company for recording forfeiture and reissue of shares. [Ans. Capital Reserve ₹200, securities premium reserve on reissue of shares ₹300? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for ABC Lad, forfeited 200 equity shares of 10 each issued at a premium of 2 per share, for non-payment of allotment money of 5 per share (including premium), first call of 4 and final call of 1. Out of these, 100 equity shares were reissued at 13 per share. Give journal entries in the books of the company for recording forfeiture and reissue of shares. [Ans. Capital Reserve ₹200, securities premium reserve on reissue of shares ₹300?.
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ABC Lad, forfeited 200 equity shares of 10 each issued at a premium of 2 per share, for non-payment of allotment money of 5 per share (including premium), first call of 4 and final call of 1. Out of these, 100 equity shares were reissued at 13 per share. Give journal entries in the books of the company for recording forfeiture and reissue of shares. [Ans. Capital Reserve ₹200, securities premium reserve on reissue of shares ₹300?, a detailed solution for ABC Lad, forfeited 200 equity shares of 10 each issued at a premium of 2 per share, for non-payment of allotment money of 5 per share (including premium), first call of 4 and final call of 1. Out of these, 100 equity shares were reissued at 13 per share. Give journal entries in the books of the company for recording forfeiture and reissue of shares. [Ans. Capital Reserve ₹200, securities premium reserve on reissue of shares ₹300? has been provided alongside types of ABC Lad, forfeited 200 equity shares of 10 each issued at a premium of 2 per share, for non-payment of allotment money of 5 per share (including premium), first call of 4 and final call of 1. Out of these, 100 equity shares were reissued at 13 per share. Give journal entries in the books of the company for recording forfeiture and reissue of shares. [Ans. Capital Reserve ₹200, securities premium reserve on reissue of shares ₹300? theory, EduRev gives you an
ample number of questions to practice ABC Lad, forfeited 200 equity shares of 10 each issued at a premium of 2 per share, for non-payment of allotment money of 5 per share (including premium), first call of 4 and final call of 1. Out of these, 100 equity shares were reissued at 13 per share. Give journal entries in the books of the company for recording forfeiture and reissue of shares. [Ans. Capital Reserve ₹200, securities premium reserve on reissue of shares ₹300? tests, examples and also practice UPSC tests.
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