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Anmol ltd. forfeited 360 shares of Rs 10 each, 8 called up, issued at a premium of Rs 2 per share to Bobby for non payment of allotment money of rs 5 per share ( including premium). Out of these, 320 shares were re- issued to Amrit as rs 8 called up for rs 10 per share fully paid up?pass necessary journal entries.?
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Anmol ltd. forfeited 360 shares of Rs 10 each, 8 called up, issued at ...
Journal Entries for Forfeiture and Re-Issue of Shares
The forfeiture of shares occurs when a shareholder fails to pay the due amount on the shares. The company forfeits the shares and can either sell them or re-issue them. In this case, Anmol Ltd. forfeited 360 shares of Rs 10 each, 8 called up, issued at a premium of Rs 2 per share to Bobby for non-payment of allotment money of Rs 5 per share (including premium). Out of these, 320 shares were re-issued to Amrit as Rs 8 called up for Rs 10 per share fully paid up. The necessary journal entries for forfeiture and re-issue of shares are as follows:
Forfeiture of Shares
The journal entry for the forfeiture of shares is as follows:
Date | Particulars | Dr. | Cr.
----|------------|----|----
Share Allotment A/c | 1,800 |
Share Capital A/c | 3,200 |
Share Premium A/c | 720 |
(Forfeiture of Shares)
Explanation:
- Share Allotment A/c is debited with the amount of allotment money due on forfeited shares (360 x Rs 5).
- Share Capital A/c is credited with the nominal value of forfeited shares (360 x Rs 10).
- Share Premium A/c is credited with the premium amount received on the forfeited shares (360 x Rs 2).
Re-Issue of Shares
The journal entry for the re-issue of shares is as follows:
Date | Particulars | Dr. | Cr.
----|------------|----|----
Bank A/c | 3,200 |
Share Capital A/c | 2,560 |
Share Premium A/c | 640 |
(Re-issue of Forfeited Shares)
Explanation:
- Bank A/c is debited with the amount received on the re-issue of shares (320 x Rs 10).
- Share Capital A/c is credited with the nominal value of re-issued shares (320 x Rs 8).
- Share Premium A/c is credited with the premium amount received on the re-issued shares (320 x Rs 2).
Conclusion
Forfeiture and re-issue of shares are important accounting transactions that companies perform to manage their share capital. The journal entries for these transactions should be recorded accurately in the company's books of accounts.
The forfeiture of shares occurs when a shareholder fails to pay the due amount on the shares. The company forfeits the shares and can either sell them or re-issue them. In this case, Anmol Ltd. forfeited 360 shares of Rs 10 each, 8 called up, issued at a premium of Rs 2 per share to Bobby for non-payment of allotment money of Rs 5 per share (including premium). Out of these, 320 shares were re-issued to Amrit as Rs 8 called up for Rs 10 per share fully paid up. The necessary journal entries for forfeiture and re-issue of shares are as follows:
Forfeiture of Shares
The journal entry for the forfeiture of shares is as follows:
Date | Particulars | Dr. | Cr.
----|------------|----|----
Share Allotment A/c | 1,800 |
Share Capital A/c | 3,200 |
Share Premium A/c | 720 |
(Forfeiture of Shares)
Explanation:
- Share Allotment A/c is debited with the amount of allotment money due on forfeited shares (360 x Rs 5).
- Share Capital A/c is credited with the nominal value of forfeited shares (360 x Rs 10).
- Share Premium A/c is credited with the premium amount received on the forfeited shares (360 x Rs 2).
Re-Issue of Shares
The journal entry for the re-issue of shares is as follows:
Date | Particulars | Dr. | Cr.
----|------------|----|----
Bank A/c | 3,200 |
Share Capital A/c | 2,560 |
Share Premium A/c | 640 |
(Re-issue of Forfeited Shares)
Explanation:
- Bank A/c is debited with the amount received on the re-issue of shares (320 x Rs 10).
- Share Capital A/c is credited with the nominal value of re-issued shares (320 x Rs 8).
- Share Premium A/c is credited with the premium amount received on the re-issued shares (320 x Rs 2).
Conclusion
Forfeiture and re-issue of shares are important accounting transactions that companies perform to manage their share capital. The journal entries for these transactions should be recorded accurately in the company's books of accounts.
Community Answer
Anmol ltd. forfeited 360 shares of Rs 10 each, 8 called up, issued at ...
(1) Equity Share Capital A/c Dr. 2880
Securities Premium A/c Dr. 720
To Calls in Arrear A/c. 1800
To Share forfeiture A/c. 1800
(2) Bank A/c (10×320) Dr. 3200
To Equity share Capital A/c.(8×320)2560
To Securities Premium A/c. (2×320) 640
(3) Share forfeiture A/c. Dr. 1600
To Capital Reserves A/c. 1600
Securities Premium A/c Dr. 720
To Calls in Arrear A/c. 1800
To Share forfeiture A/c. 1800
(2) Bank A/c (10×320) Dr. 3200
To Equity share Capital A/c.(8×320)2560
To Securities Premium A/c. (2×320) 640
(3) Share forfeiture A/c. Dr. 1600
To Capital Reserves A/c. 1600
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Anmol ltd. forfeited 360 shares of Rs 10 each, 8 called up, issued at a premium of Rs 2 per share to Bobby for non payment of allotment money of rs 5 per share ( including premium). Out of these, 320 shares were re- issued to Amrit as rs 8 called up for rs 10 per share fully paid up?pass necessary journal entries.?
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Anmol ltd. forfeited 360 shares of Rs 10 each, 8 called up, issued at a premium of Rs 2 per share to Bobby for non payment of allotment money of rs 5 per share ( including premium). Out of these, 320 shares were re- issued to Amrit as rs 8 called up for rs 10 per share fully paid up?pass necessary journal entries.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Anmol ltd. forfeited 360 shares of Rs 10 each, 8 called up, issued at a premium of Rs 2 per share to Bobby for non payment of allotment money of rs 5 per share ( including premium). Out of these, 320 shares were re- issued to Amrit as rs 8 called up for rs 10 per share fully paid up?pass necessary journal entries.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Anmol ltd. forfeited 360 shares of Rs 10 each, 8 called up, issued at a premium of Rs 2 per share to Bobby for non payment of allotment money of rs 5 per share ( including premium). Out of these, 320 shares were re- issued to Amrit as rs 8 called up for rs 10 per share fully paid up?pass necessary journal entries.?.
Anmol ltd. forfeited 360 shares of Rs 10 each, 8 called up, issued at a premium of Rs 2 per share to Bobby for non payment of allotment money of rs 5 per share ( including premium). Out of these, 320 shares were re- issued to Amrit as rs 8 called up for rs 10 per share fully paid up?pass necessary journal entries.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Anmol ltd. forfeited 360 shares of Rs 10 each, 8 called up, issued at a premium of Rs 2 per share to Bobby for non payment of allotment money of rs 5 per share ( including premium). Out of these, 320 shares were re- issued to Amrit as rs 8 called up for rs 10 per share fully paid up?pass necessary journal entries.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Anmol ltd. forfeited 360 shares of Rs 10 each, 8 called up, issued at a premium of Rs 2 per share to Bobby for non payment of allotment money of rs 5 per share ( including premium). Out of these, 320 shares were re- issued to Amrit as rs 8 called up for rs 10 per share fully paid up?pass necessary journal entries.?.
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Anmol ltd. forfeited 360 shares of Rs 10 each, 8 called up, issued at a premium of Rs 2 per share to Bobby for non payment of allotment money of rs 5 per share ( including premium). Out of these, 320 shares were re- issued to Amrit as rs 8 called up for rs 10 per share fully paid up?pass necessary journal entries.?, a detailed solution for Anmol ltd. forfeited 360 shares of Rs 10 each, 8 called up, issued at a premium of Rs 2 per share to Bobby for non payment of allotment money of rs 5 per share ( including premium). Out of these, 320 shares were re- issued to Amrit as rs 8 called up for rs 10 per share fully paid up?pass necessary journal entries.? has been provided alongside types of Anmol ltd. forfeited 360 shares of Rs 10 each, 8 called up, issued at a premium of Rs 2 per share to Bobby for non payment of allotment money of rs 5 per share ( including premium). Out of these, 320 shares were re- issued to Amrit as rs 8 called up for rs 10 per share fully paid up?pass necessary journal entries.? theory, EduRev gives you an
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