Class 12 Exam > Class 12 Questions > The directors of D ltd. ,resolved on 1st May ...
Start Learning for Free
The directors of D ltd. ,resolved on 1st May 2015 that 2000 equity shares of @10 each. @ 7.50 paid be forfeited For non payment of final call of @ 2.50.on 10th June 2015, 1800 of these shares were re-issued at @ 6 per share.Give necessary journal entries regarding forfeiture and re-issue of shares.
Verified Answer
The directors of D ltd. ,resolved on 1st May 2015 that 2000 equity sha...
Working Note:
Total Amount of forfeiture on 2000 shares is Rs. 15,000.
Therefore, amount of forfeiture on 1800 shares is Rs. 13,500 (1800*7.5)
So, Amount transfer to capital Reserve =
This question is part of UPSC exam. View all Class 12 courses
Most Upvoted Answer
The directors of D ltd. ,resolved on 1st May 2015 that 2000 equity sha...
Forfeiture of Shares:
The forfeiture of shares occurs when a shareholder fails to make the payment of the amount due on shares. In this case, the directors of D Ltd. resolved on 1st May 2015 that 2000 equity shares of ₹10 each, with ₹7.50 paid, be forfeited for non-payment of the final call of ₹2.50.
To record the forfeiture of shares, the following journal entry is made:
Date: 1st May 2015
Share Capital Account (Face Value of Forfeited Shares) Dr. ₹20,000
Share Forfeiture Account (Amount Already Paid on Forfeited Shares) Dr. ₹15,000
Share Allotment Account (Amount Due on Forfeited Shares) Cr. ₹15,000
Share Call Account (Amount Due on Forfeited Shares) Cr. ₹5,000
Forfeited Shares Account (Face Value of Forfeited Shares) Cr. ₹20,000
Re-issue of Shares:
After the shares are forfeited, the company has the option to re-issue them to new shareholders. In this case, 1800 of the forfeited shares were re-issued at ₹6 per share on 10th June 2015.
To record the re-issue of shares, the following journal entry is made:
Date: 10th June 2015
Bank Account (Amount Received on Re-issue) Dr. ₹10,800
Share Forfeiture Account (Amount Already Paid on Forfeited Shares) Cr. ₹15,000
Share Allotment Account (Amount Due on Re-issued Shares) Dr. ₹9,000
Share Call Account (Amount Due on Re-issued Shares) Dr. ₹1,800
Forfeited Shares Account (Face Value of Re-issued Shares) Cr. ₹18,000
Capital Reserve Account (Excess of Re-issue Price over Face Value) Cr. ₹1,800
Summary:
- On 1st May 2015, 2000 equity shares of ₹10 each with ₹7.50 paid were forfeited.
- The journal entry for forfeiture includes debiting Share Capital Account, Share Forfeiture Account, Share Allotment Account, Share Call Account, and crediting Forfeited Shares Account.
- On 10th June 2015, 1800 of the forfeited shares were re-issued at ₹6 per share.
- The journal entry for re-issue includes debiting Bank Account, Share Forfeiture Account, Share Allotment Account, Share Call Account, and crediting Forfeited Shares Account and Capital Reserve Account.
The forfeiture of shares occurs when a shareholder fails to make the payment of the amount due on shares. In this case, the directors of D Ltd. resolved on 1st May 2015 that 2000 equity shares of ₹10 each, with ₹7.50 paid, be forfeited for non-payment of the final call of ₹2.50.
To record the forfeiture of shares, the following journal entry is made:
Date: 1st May 2015
Share Capital Account (Face Value of Forfeited Shares) Dr. ₹20,000
Share Forfeiture Account (Amount Already Paid on Forfeited Shares) Dr. ₹15,000
Share Allotment Account (Amount Due on Forfeited Shares) Cr. ₹15,000
Share Call Account (Amount Due on Forfeited Shares) Cr. ₹5,000
Forfeited Shares Account (Face Value of Forfeited Shares) Cr. ₹20,000
Re-issue of Shares:
After the shares are forfeited, the company has the option to re-issue them to new shareholders. In this case, 1800 of the forfeited shares were re-issued at ₹6 per share on 10th June 2015.
To record the re-issue of shares, the following journal entry is made:
Date: 10th June 2015
Bank Account (Amount Received on Re-issue) Dr. ₹10,800
Share Forfeiture Account (Amount Already Paid on Forfeited Shares) Cr. ₹15,000
Share Allotment Account (Amount Due on Re-issued Shares) Dr. ₹9,000
Share Call Account (Amount Due on Re-issued Shares) Dr. ₹1,800
Forfeited Shares Account (Face Value of Re-issued Shares) Cr. ₹18,000
Capital Reserve Account (Excess of Re-issue Price over Face Value) Cr. ₹1,800
Summary:
- On 1st May 2015, 2000 equity shares of ₹10 each with ₹7.50 paid were forfeited.
- The journal entry for forfeiture includes debiting Share Capital Account, Share Forfeiture Account, Share Allotment Account, Share Call Account, and crediting Forfeited Shares Account.
- On 10th June 2015, 1800 of the forfeited shares were re-issued at ₹6 per share.
- The journal entry for re-issue includes debiting Bank Account, Share Forfeiture Account, Share Allotment Account, Share Call Account, and crediting Forfeited Shares Account and Capital Reserve Account.
|
|
Explore Courses for Class 12 exam
|
|
Similar Class 12 Doubts
The directors of D ltd. ,resolved on 1st May 2015 that 2000 equity shares of @10 each. @ 7.50 paid be forfeited For non payment of final call of @ 2.50.on 10th June 2015, 1800 of these shares were re-issued at @ 6 per share.Give necessary journal entries regarding forfeiture and re-issue of shares. Related: Accountancy class 12th. / forfeiture and re-issue of shares
Question Description
The directors of D ltd. ,resolved on 1st May 2015 that 2000 equity shares of @10 each. @ 7.50 paid be forfeited For non payment of final call of @ 2.50.on 10th June 2015, 1800 of these shares were re-issued at @ 6 per share.Give necessary journal entries regarding forfeiture and re-issue of shares. Related: Accountancy class 12th. / forfeiture and re-issue of shares for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about The directors of D ltd. ,resolved on 1st May 2015 that 2000 equity shares of @10 each. @ 7.50 paid be forfeited For non payment of final call of @ 2.50.on 10th June 2015, 1800 of these shares were re-issued at @ 6 per share.Give necessary journal entries regarding forfeiture and re-issue of shares. Related: Accountancy class 12th. / forfeiture and re-issue of shares covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The directors of D ltd. ,resolved on 1st May 2015 that 2000 equity shares of @10 each. @ 7.50 paid be forfeited For non payment of final call of @ 2.50.on 10th June 2015, 1800 of these shares were re-issued at @ 6 per share.Give necessary journal entries regarding forfeiture and re-issue of shares. Related: Accountancy class 12th. / forfeiture and re-issue of shares.
The directors of D ltd. ,resolved on 1st May 2015 that 2000 equity shares of @10 each. @ 7.50 paid be forfeited For non payment of final call of @ 2.50.on 10th June 2015, 1800 of these shares were re-issued at @ 6 per share.Give necessary journal entries regarding forfeiture and re-issue of shares. Related: Accountancy class 12th. / forfeiture and re-issue of shares for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about The directors of D ltd. ,resolved on 1st May 2015 that 2000 equity shares of @10 each. @ 7.50 paid be forfeited For non payment of final call of @ 2.50.on 10th June 2015, 1800 of these shares were re-issued at @ 6 per share.Give necessary journal entries regarding forfeiture and re-issue of shares. Related: Accountancy class 12th. / forfeiture and re-issue of shares covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The directors of D ltd. ,resolved on 1st May 2015 that 2000 equity shares of @10 each. @ 7.50 paid be forfeited For non payment of final call of @ 2.50.on 10th June 2015, 1800 of these shares were re-issued at @ 6 per share.Give necessary journal entries regarding forfeiture and re-issue of shares. Related: Accountancy class 12th. / forfeiture and re-issue of shares.
Solutions for The directors of D ltd. ,resolved on 1st May 2015 that 2000 equity shares of @10 each. @ 7.50 paid be forfeited For non payment of final call of @ 2.50.on 10th June 2015, 1800 of these shares were re-issued at @ 6 per share.Give necessary journal entries regarding forfeiture and re-issue of shares. Related: Accountancy class 12th. / forfeiture and re-issue of shares in English & in Hindi are available as part of our courses for Class 12.
Download more important topics, notes, lectures and mock test series for Class 12 Exam by signing up for free.
Here you can find the meaning of The directors of D ltd. ,resolved on 1st May 2015 that 2000 equity shares of @10 each. @ 7.50 paid be forfeited For non payment of final call of @ 2.50.on 10th June 2015, 1800 of these shares were re-issued at @ 6 per share.Give necessary journal entries regarding forfeiture and re-issue of shares. Related: Accountancy class 12th. / forfeiture and re-issue of shares defined & explained in the simplest way possible. Besides giving the explanation of
The directors of D ltd. ,resolved on 1st May 2015 that 2000 equity shares of @10 each. @ 7.50 paid be forfeited For non payment of final call of @ 2.50.on 10th June 2015, 1800 of these shares were re-issued at @ 6 per share.Give necessary journal entries regarding forfeiture and re-issue of shares. Related: Accountancy class 12th. / forfeiture and re-issue of shares, a detailed solution for The directors of D ltd. ,resolved on 1st May 2015 that 2000 equity shares of @10 each. @ 7.50 paid be forfeited For non payment of final call of @ 2.50.on 10th June 2015, 1800 of these shares were re-issued at @ 6 per share.Give necessary journal entries regarding forfeiture and re-issue of shares. Related: Accountancy class 12th. / forfeiture and re-issue of shares has been provided alongside types of The directors of D ltd. ,resolved on 1st May 2015 that 2000 equity shares of @10 each. @ 7.50 paid be forfeited For non payment of final call of @ 2.50.on 10th June 2015, 1800 of these shares were re-issued at @ 6 per share.Give necessary journal entries regarding forfeiture and re-issue of shares. Related: Accountancy class 12th. / forfeiture and re-issue of shares theory, EduRev gives you an
ample number of questions to practice The directors of D ltd. ,resolved on 1st May 2015 that 2000 equity shares of @10 each. @ 7.50 paid be forfeited For non payment of final call of @ 2.50.on 10th June 2015, 1800 of these shares were re-issued at @ 6 per share.Give necessary journal entries regarding forfeiture and re-issue of shares. Related: Accountancy class 12th. / forfeiture and re-issue of shares tests, examples and also practice Class 12 tests.
|
|
Explore Courses for Class 12 exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup