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X Ltd. forfeited 200 share of Rs.100 each Rs.70 called up,on which the shareholder had paid application and allotment money of Rs50 per share. Out of these,150 share Were re-issued to naresh as Rs 70 paid up for Rs 80 per share. Record the Journal entry for forfeiture and Re-issue ?
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X Ltd. forfeited 200 share of Rs.100 each Rs.70 called up,on which the...
Journal Entry for Forfeiture and Re-issue
Forfeiture of Shares:
When a shareholder fails to pay the call amount on shares, the company has the right to forfeit those shares. The forfeiture of shares is recorded in the books of accounts with the following journal entry:
Forfeiture A/c Dr. [Number of shares forfeited * Call amount]
Share Capital A/c (Nominal value of shares) Cr. [Number of shares forfeited * Nominal value]
Re-issue of Shares:
The forfeited shares can be re-issued by the company to a new shareholder. The re-issue of shares is recorded in the books of accounts with the following journal entry:
Bank A/c Dr. [Number of shares re-issued * Re-issue price]
Share Capital A/c (Nominal value of shares) Cr. [Number of shares re-issued * Nominal value]
Share Forfeiture A/c Cr. [Amount received on re-issue of shares]
Explanation:
In the given scenario, X Ltd. forfeited 200 shares of Rs.100 each, Rs.70 called up. The shareholder had paid application and allotment money of Rs.50 per share. Hence, the amount forfeited per share is Rs.20 (Rs.70 call amount - Rs.50 application and allotment money). The total amount forfeited is Rs.4000 (200 shares * Rs.20 per share). The share capital of X Ltd. will be reduced by Rs.20,000 (200 shares * Rs.100 nominal value per share).
Out of these, 150 shares were re-issued to Naresh as Rs.70 paid up for Rs.80 per share. Hence, the re-issue price per share is Rs.80. The total amount received on re-issue of shares is Rs.12,000 (150 shares * Rs.80 per share). The nominal value of the re-issued shares is Rs.15,000 (150 shares * Rs.100 nominal value per share). Therefore, the share capital of X Ltd. will be increased by Rs.15,000, and the Share Forfeiture A/c will be credited by Rs.7,000 (Rs.12,000 - Rs.5,000) to balance the journal entry.
In conclusion, the journal entry for forfeiture and re-issue involves the forfeiture of shares by debiting Forfeiture A/c and crediting Share Capital A/c and the re-issue of shares by debiting Bank A/c and crediting Share Capital A/c and Share Forfeiture A/c.
Forfeiture of Shares:
When a shareholder fails to pay the call amount on shares, the company has the right to forfeit those shares. The forfeiture of shares is recorded in the books of accounts with the following journal entry:
Forfeiture A/c Dr. [Number of shares forfeited * Call amount]
Share Capital A/c (Nominal value of shares) Cr. [Number of shares forfeited * Nominal value]
Re-issue of Shares:
The forfeited shares can be re-issued by the company to a new shareholder. The re-issue of shares is recorded in the books of accounts with the following journal entry:
Bank A/c Dr. [Number of shares re-issued * Re-issue price]
Share Capital A/c (Nominal value of shares) Cr. [Number of shares re-issued * Nominal value]
Share Forfeiture A/c Cr. [Amount received on re-issue of shares]
Explanation:
In the given scenario, X Ltd. forfeited 200 shares of Rs.100 each, Rs.70 called up. The shareholder had paid application and allotment money of Rs.50 per share. Hence, the amount forfeited per share is Rs.20 (Rs.70 call amount - Rs.50 application and allotment money). The total amount forfeited is Rs.4000 (200 shares * Rs.20 per share). The share capital of X Ltd. will be reduced by Rs.20,000 (200 shares * Rs.100 nominal value per share).
Out of these, 150 shares were re-issued to Naresh as Rs.70 paid up for Rs.80 per share. Hence, the re-issue price per share is Rs.80. The total amount received on re-issue of shares is Rs.12,000 (150 shares * Rs.80 per share). The nominal value of the re-issued shares is Rs.15,000 (150 shares * Rs.100 nominal value per share). Therefore, the share capital of X Ltd. will be increased by Rs.15,000, and the Share Forfeiture A/c will be credited by Rs.7,000 (Rs.12,000 - Rs.5,000) to balance the journal entry.
In conclusion, the journal entry for forfeiture and re-issue involves the forfeiture of shares by debiting Forfeiture A/c and crediting Share Capital A/c and the re-issue of shares by debiting Bank A/c and crediting Share Capital A/c and Share Forfeiture A/c.
Community Answer
X Ltd. forfeited 200 share of Rs.100 each Rs.70 called up,on which the...
Share capital account dr 14000 ,to share appli and allot. account cr 10000 to share forfeiture account 4000
bank account dr 13500 ,share forfeiture account dr 1500 to share capital account 15000
bank account dr 13500 ,share forfeiture account dr 1500 to share capital account 15000
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X Ltd. forfeited 200 share of Rs.100 each Rs.70 called up,on which the shareholder had paid application and allotment money of Rs50 per share. Out of these,150 share Were re-issued to naresh as Rs 70 paid up for Rs 80 per share. Record the Journal entry for forfeiture and Re-issue ?
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X Ltd. forfeited 200 share of Rs.100 each Rs.70 called up,on which the shareholder had paid application and allotment money of Rs50 per share. Out of these,150 share Were re-issued to naresh as Rs 70 paid up for Rs 80 per share. Record the Journal entry for forfeiture and Re-issue ? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about X Ltd. forfeited 200 share of Rs.100 each Rs.70 called up,on which the shareholder had paid application and allotment money of Rs50 per share. Out of these,150 share Were re-issued to naresh as Rs 70 paid up for Rs 80 per share. Record the Journal entry for forfeiture and Re-issue ? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X Ltd. forfeited 200 share of Rs.100 each Rs.70 called up,on which the shareholder had paid application and allotment money of Rs50 per share. Out of these,150 share Were re-issued to naresh as Rs 70 paid up for Rs 80 per share. Record the Journal entry for forfeiture and Re-issue ?.
X Ltd. forfeited 200 share of Rs.100 each Rs.70 called up,on which the shareholder had paid application and allotment money of Rs50 per share. Out of these,150 share Were re-issued to naresh as Rs 70 paid up for Rs 80 per share. Record the Journal entry for forfeiture and Re-issue ? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about X Ltd. forfeited 200 share of Rs.100 each Rs.70 called up,on which the shareholder had paid application and allotment money of Rs50 per share. Out of these,150 share Were re-issued to naresh as Rs 70 paid up for Rs 80 per share. Record the Journal entry for forfeiture and Re-issue ? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X Ltd. forfeited 200 share of Rs.100 each Rs.70 called up,on which the shareholder had paid application and allotment money of Rs50 per share. Out of these,150 share Were re-issued to naresh as Rs 70 paid up for Rs 80 per share. Record the Journal entry for forfeiture and Re-issue ?.
Solutions for X Ltd. forfeited 200 share of Rs.100 each Rs.70 called up,on which the shareholder had paid application and allotment money of Rs50 per share. Out of these,150 share Were re-issued to naresh as Rs 70 paid up for Rs 80 per share. Record the Journal entry for forfeiture and Re-issue ? in English & in Hindi are available as part of our courses for Commerce.
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X Ltd. forfeited 200 share of Rs.100 each Rs.70 called up,on which the shareholder had paid application and allotment money of Rs50 per share. Out of these,150 share Were re-issued to naresh as Rs 70 paid up for Rs 80 per share. Record the Journal entry for forfeiture and Re-issue ?, a detailed solution for X Ltd. forfeited 200 share of Rs.100 each Rs.70 called up,on which the shareholder had paid application and allotment money of Rs50 per share. Out of these,150 share Were re-issued to naresh as Rs 70 paid up for Rs 80 per share. Record the Journal entry for forfeiture and Re-issue ? has been provided alongside types of X Ltd. forfeited 200 share of Rs.100 each Rs.70 called up,on which the shareholder had paid application and allotment money of Rs50 per share. Out of these,150 share Were re-issued to naresh as Rs 70 paid up for Rs 80 per share. Record the Journal entry for forfeiture and Re-issue ? theory, EduRev gives you an
ample number of questions to practice X Ltd. forfeited 200 share of Rs.100 each Rs.70 called up,on which the shareholder had paid application and allotment money of Rs50 per share. Out of these,150 share Were re-issued to naresh as Rs 70 paid up for Rs 80 per share. Record the Journal entry for forfeiture and Re-issue ? tests, examples and also practice Commerce tests.
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