Share Comprehensive Questions
Share Comprehensive Questions
On Application – ₹ 30
On 1st call – ₹ 30
Applications of 1,20,000 shares were received. Allotment was made on pro rata basis to all
applicants. Excess money received on application was adjusted on sums due on allotment. Dhwani,
who was allotted 1,600 shares, failed to pay allotment money and Sargam who applied of 6,000
shares did not pay 1st call money. These shares were forfeited immediately after 1st call. 2,000 of
these shares (including all shares of Dhwani were issued to Tarang for ₹ 95 per share as 80 paid up.
Pass necessary journal entries in books of Saregama Ltd. by opening call in arrear, call in advance
account, if final call has not been made.
Or
a. X Ltd. forfeited 10 shares of ₹ 10 each, ₹ 7 called up on which the shareholder had paid application
and allotment money of ₹ 5 per share. Out of these, 8 shares were re-issued to Y for ₹8 per share at
₹ 8 per paid up per share. Record the journal entries for forfeiture and reissue of shares by opening
call in arrear, call in advance account.
b. L ltd forfeited Mr M’s shares who has applied for 600 shares and was allotted 400 shares failed to
pay allotment money of ₹ 4 per share including premium of ₹ 2 on which he had paid application
money of ₹ 2 only. Pass necessary journal entries for forfeiture of shares by opening call in arrear,
call in advance account.
c. Crown Ltd forfeited 50 shares of ₹ 10 each, for non- payment of final call money of ₹ 3 per share.
Out of these 20 shares were reissued to Taj at₹ 8 per share. Record the journal entries for forfeiture
and reissue of shares assuming that the company maintains call in arrear, call in advance account.