SHARES TEST 1
1. X Ltd, forfeited 500 shares of ₹10 each, ₹8 called-up on
which Vimal has paid application and allotment money of
₹6 per share. Of these, 400 shares were re-issued to Kamal
as fully paid for ₹9 per share.
2. Z Ltd. forfeited 1,000 shares of ₹10 each issued at 10%
premium to Kavita (₹8 called-up) on which she did not pay
₹5 of allotment (including premium) and first call of ₹3. Out
of these, 400 shares were re-issued to Savita as ₹8 called-
up for ₹6 per share and 300 shares to Namita as fully paid-
up for ₹11 per share at different intervals of time.
3. Journalise the following transactions in the books of
Poonam Ltd.:
200 shares of ₹10 each issued at a premium of ₹5 each
payable with allotment were forfeited for the non-payment
of allotment money of ₹8 per share including premium. The
first and final call on these shares at ₹3 per share was not
made. The forfeited shares were re-issued @ ₹12 per share
fully paid-up.
4. Give journal entries for forfeiture and re-issue of shares:
(a) X Ltd. forfeited 500 shares of ₹100 each, ₹75 called-up,
issued at 10% premium (to be paid at the time of allotment)
for non-payment of a first call of ₹20 per share. Out of
these, 200 shares were re-issued as ₹75 paid-up for ₹60
per share.
(b) X Ltd. forfeited 300 shares of ₹100 each, ₹75 called-up,
issued at 10% premium (to be paid at the time of allotment)
for non-payment of allotment money of ₹30 per share
(including premium) and first call of ₹20 per share. Out of
these, 100 shares were re-issued as fully paid-up in such a
way that ₹3,100 were transferred to Capital Reserve
5. Journalise the following:
(a) Y Ltd. forfeited 400 shares of ₹100 each, issued at a
premium of ₹5 per share (to be paid at the time of
allotment) for non-payment of a first call of ₹20 per
share. The second and final call of ₹20 has not yet been
called. Out of these, 100 shares were re-issued on fully
paid-up at the maximum rate of discount allowed by
law.
(b) Y Ltd. forfeited 700 shares of ₹100 each, issued at a
premium of ₹5 per share for non-payment of allotment
money of ₹35 per share (including premium) and first
call of ₹20 per share. The second and final call of ₹20
has not yet been called. 500 of these shares were re-
issued as ₹80 paid-up for ₹92 per share.
6. Journalise the following:
(i) A Ltd. forfeited 1,000 shares of ₹10 each, ₹8 paid, for
non-payment of final call of ₹2 per share. Out of these,
400 shares were re-issued as fully paid-up in such a
way that ₹2,000 were transferred to capital reserve.
(ii) B Ltd. forfeited 1,000 shares of ₹10 each, ₹8 called-up,
for non-payment of allotment of ₹2.50 per share and
first call of ₹3 per share. Out of these, 400 shares were
re-issued for ₹7 per share as ₹8 paid-up.
(iii) C Ltd. forfeited 300 shares of ₹10 each on which ₹7
has been called and ₹5 has been paid. Out of these, 100
shares are re-issued for ₹6 per share as ₹7 paid-up.
