Class 12 Exam > Class 12 Questions > Shizuka Ltd. Issued 25000 shares of Rs.10 eac...
Start Learning for Free
Shizuka Ltd. Issued 25000 shares of Rs.10 each at Rs. 12 per share payable as follows application Rs.2,allot.Rs.5(including premium),on first call Rs.3,Final call Rs.2.on the first call being made,all the shareholders except one holding 400 shares duly paid the amount.these share were forfeited.out of These share 300 share were reissued onRs.8per share paid up for Rs.6 per share.Show journal entry regarding forfeiture and reissue.?
Most Upvoted Answer
Shizuka Ltd. Issued 25000 shares of Rs.10 each at Rs. 12 per share pay...
Journal Entry for Forfeiture of Shares:
When the shareholders fail to pay the amount due on their shares, the company has the right to forfeit their shares. In this case, 400 shares were forfeited as the shareholder holding those shares did not pay the first call amount.
1. Forfeiture of Shares:
- Share Capital Account (400 shares x Rs.10 per share) Dr. 4,000
- Share Forfeiture Account (400 shares x Rs.10 per share) Cr. 4,000
(Being shares forfeited due to non-payment of first call)
2. Share Forfeiture Account:
- Share Forfeiture Account (400 shares x Rs.10 per share) Dr. 4,000
- Share Capital Suspense Account (400 shares x Rs.10 per share) Cr. 4,000
(Being the share capital transferred to Share Forfeiture Account)
3. Reissue of Forfeited Shares:
- Bank Account (300 shares x Rs.8 per share) Dr. 2,400
- Share Forfeiture Account (300 shares x Rs.10 per share) Cr. 3,000
- Share Capital Account (300 shares x Rs.10 per share) Cr. 3,000
(Being the reissue of forfeited shares at a lower price)
4. Share Capital Account:
- Share Capital Suspense Account (400 shares x Rs.10 per share) Dr. 4,000
- Share Capital Account (400 shares x Rs.10 per share) Cr. 4,000
(Being the cancellation of forfeited shares)
5. Share Capital Suspense Account:
- Share Forfeiture Account (400 shares x Rs.10 per share) Dr. 4,000
- Share Capital Suspense Account (400 shares x Rs.10 per share) Cr. 4,000
(Being the transfer of forfeited share capital to Share Capital Suspense Account)
Explanation:
1. Forfeiture of Shares:
- The Share Capital Account is debited to reflect the reduction in the issued share capital due to forfeiture.
- The Share Forfeiture Account is credited to record the shares forfeited.
2. Share Forfeiture Account:
- The Share Forfeiture Account is debited to transfer the share capital to the Share Forfeiture Account.
- The Share Capital Suspense Account is credited to temporarily hold the forfeited share capital.
3. Reissue of Forfeited Shares:
- The Bank Account is debited to record the cash received from the reissue of forfeited shares.
- The Share Forfeiture Account is credited to reduce the balance of forfeited shares.
- The Share Capital Account is credited to reflect the reissue of shares at a lower price.
4. Share Capital Account:
- The Share Capital Suspense Account is debited to cancel the balance of forfeited shares.
- The Share Capital Account is credited to restore the share capital to its original amount.
5. Share Capital Suspense Account:
- The Share Forfeiture Account is debited to transfer the forfeited share capital to the Share Capital Suspense Account.
- The Share Capital Suspense
When the shareholders fail to pay the amount due on their shares, the company has the right to forfeit their shares. In this case, 400 shares were forfeited as the shareholder holding those shares did not pay the first call amount.
1. Forfeiture of Shares:
- Share Capital Account (400 shares x Rs.10 per share) Dr. 4,000
- Share Forfeiture Account (400 shares x Rs.10 per share) Cr. 4,000
(Being shares forfeited due to non-payment of first call)
2. Share Forfeiture Account:
- Share Forfeiture Account (400 shares x Rs.10 per share) Dr. 4,000
- Share Capital Suspense Account (400 shares x Rs.10 per share) Cr. 4,000
(Being the share capital transferred to Share Forfeiture Account)
3. Reissue of Forfeited Shares:
- Bank Account (300 shares x Rs.8 per share) Dr. 2,400
- Share Forfeiture Account (300 shares x Rs.10 per share) Cr. 3,000
- Share Capital Account (300 shares x Rs.10 per share) Cr. 3,000
(Being the reissue of forfeited shares at a lower price)
4. Share Capital Account:
- Share Capital Suspense Account (400 shares x Rs.10 per share) Dr. 4,000
- Share Capital Account (400 shares x Rs.10 per share) Cr. 4,000
(Being the cancellation of forfeited shares)
5. Share Capital Suspense Account:
- Share Forfeiture Account (400 shares x Rs.10 per share) Dr. 4,000
- Share Capital Suspense Account (400 shares x Rs.10 per share) Cr. 4,000
(Being the transfer of forfeited share capital to Share Capital Suspense Account)
Explanation:
1. Forfeiture of Shares:
- The Share Capital Account is debited to reflect the reduction in the issued share capital due to forfeiture.
- The Share Forfeiture Account is credited to record the shares forfeited.
2. Share Forfeiture Account:
- The Share Forfeiture Account is debited to transfer the share capital to the Share Forfeiture Account.
- The Share Capital Suspense Account is credited to temporarily hold the forfeited share capital.
3. Reissue of Forfeited Shares:
- The Bank Account is debited to record the cash received from the reissue of forfeited shares.
- The Share Forfeiture Account is credited to reduce the balance of forfeited shares.
- The Share Capital Account is credited to reflect the reissue of shares at a lower price.
4. Share Capital Account:
- The Share Capital Suspense Account is debited to cancel the balance of forfeited shares.
- The Share Capital Account is credited to restore the share capital to its original amount.
5. Share Capital Suspense Account:
- The Share Forfeiture Account is debited to transfer the forfeited share capital to the Share Capital Suspense Account.
- The Share Capital Suspense
|
Explore Courses for Class 12 exam
|
|
Similar Class 12 Doubts
Shizuka Ltd. Issued 25000 shares of Rs.10 each at Rs. 12 per share payable as follows application Rs.2,allot.Rs.5(including premium),on first call Rs.3,Final call Rs.2.on the first call being made,all the shareholders except one holding 400 shares duly paid the amount.these share were forfeited.out of These share 300 share were reissued onRs.8per share paid up for Rs.6 per share.Show journal entry regarding forfeiture and reissue.?
Question Description
Shizuka Ltd. Issued 25000 shares of Rs.10 each at Rs. 12 per share payable as follows application Rs.2,allot.Rs.5(including premium),on first call Rs.3,Final call Rs.2.on the first call being made,all the shareholders except one holding 400 shares duly paid the amount.these share were forfeited.out of These share 300 share were reissued onRs.8per share paid up for Rs.6 per share.Show journal entry regarding forfeiture and reissue.? 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 Shizuka Ltd. Issued 25000 shares of Rs.10 each at Rs. 12 per share payable as follows application Rs.2,allot.Rs.5(including premium),on first call Rs.3,Final call Rs.2.on the first call being made,all the shareholders except one holding 400 shares duly paid the amount.these share were forfeited.out of These share 300 share were reissued onRs.8per share paid up for Rs.6 per share.Show journal entry regarding forfeiture and reissue.? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Shizuka Ltd. Issued 25000 shares of Rs.10 each at Rs. 12 per share payable as follows application Rs.2,allot.Rs.5(including premium),on first call Rs.3,Final call Rs.2.on the first call being made,all the shareholders except one holding 400 shares duly paid the amount.these share were forfeited.out of These share 300 share were reissued onRs.8per share paid up for Rs.6 per share.Show journal entry regarding forfeiture and reissue.?.
Shizuka Ltd. Issued 25000 shares of Rs.10 each at Rs. 12 per share payable as follows application Rs.2,allot.Rs.5(including premium),on first call Rs.3,Final call Rs.2.on the first call being made,all the shareholders except one holding 400 shares duly paid the amount.these share were forfeited.out of These share 300 share were reissued onRs.8per share paid up for Rs.6 per share.Show journal entry regarding forfeiture and reissue.? 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 Shizuka Ltd. Issued 25000 shares of Rs.10 each at Rs. 12 per share payable as follows application Rs.2,allot.Rs.5(including premium),on first call Rs.3,Final call Rs.2.on the first call being made,all the shareholders except one holding 400 shares duly paid the amount.these share were forfeited.out of These share 300 share were reissued onRs.8per share paid up for Rs.6 per share.Show journal entry regarding forfeiture and reissue.? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Shizuka Ltd. Issued 25000 shares of Rs.10 each at Rs. 12 per share payable as follows application Rs.2,allot.Rs.5(including premium),on first call Rs.3,Final call Rs.2.on the first call being made,all the shareholders except one holding 400 shares duly paid the amount.these share were forfeited.out of These share 300 share were reissued onRs.8per share paid up for Rs.6 per share.Show journal entry regarding forfeiture and reissue.?.
Solutions for Shizuka Ltd. Issued 25000 shares of Rs.10 each at Rs. 12 per share payable as follows application Rs.2,allot.Rs.5(including premium),on first call Rs.3,Final call Rs.2.on the first call being made,all the shareholders except one holding 400 shares duly paid the amount.these share were forfeited.out of These share 300 share were reissued onRs.8per share paid up for Rs.6 per share.Show journal entry regarding forfeiture and reissue.? 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 Shizuka Ltd. Issued 25000 shares of Rs.10 each at Rs. 12 per share payable as follows application Rs.2,allot.Rs.5(including premium),on first call Rs.3,Final call Rs.2.on the first call being made,all the shareholders except one holding 400 shares duly paid the amount.these share were forfeited.out of These share 300 share were reissued onRs.8per share paid up for Rs.6 per share.Show journal entry regarding forfeiture and reissue.? defined & explained in the simplest way possible. Besides giving the explanation of
Shizuka Ltd. Issued 25000 shares of Rs.10 each at Rs. 12 per share payable as follows application Rs.2,allot.Rs.5(including premium),on first call Rs.3,Final call Rs.2.on the first call being made,all the shareholders except one holding 400 shares duly paid the amount.these share were forfeited.out of These share 300 share were reissued onRs.8per share paid up for Rs.6 per share.Show journal entry regarding forfeiture and reissue.?, a detailed solution for Shizuka Ltd. Issued 25000 shares of Rs.10 each at Rs. 12 per share payable as follows application Rs.2,allot.Rs.5(including premium),on first call Rs.3,Final call Rs.2.on the first call being made,all the shareholders except one holding 400 shares duly paid the amount.these share were forfeited.out of These share 300 share were reissued onRs.8per share paid up for Rs.6 per share.Show journal entry regarding forfeiture and reissue.? has been provided alongside types of Shizuka Ltd. Issued 25000 shares of Rs.10 each at Rs. 12 per share payable as follows application Rs.2,allot.Rs.5(including premium),on first call Rs.3,Final call Rs.2.on the first call being made,all the shareholders except one holding 400 shares duly paid the amount.these share were forfeited.out of These share 300 share were reissued onRs.8per share paid up for Rs.6 per share.Show journal entry regarding forfeiture and reissue.? theory, EduRev gives you an
ample number of questions to practice Shizuka Ltd. Issued 25000 shares of Rs.10 each at Rs. 12 per share payable as follows application Rs.2,allot.Rs.5(including premium),on first call Rs.3,Final call Rs.2.on the first call being made,all the shareholders except one holding 400 shares duly paid the amount.these share were forfeited.out of These share 300 share were reissued onRs.8per share paid up for Rs.6 per share.Show journal entry regarding forfeiture and reissue.? 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!
within 7 days!
Takes less than 10 seconds to signup