Page 179 - MA-12

6.38 Double Entry Book Keeping (Section A)—ISC XII

3. 80 shares have been reissued which include 60 shares of Raghav and the balance 20 shares of Ajay. `
` 240
Amount forfeited on 20 shares of Ajay = 40 × 20 120
Amount forfeited on 60 shares of Raghav 360
Total amount forfeited on 80 reissued shares 480
Less: Reissue discount 80
Gain on reissue to be transferred to Capital Reserve 400
4. Amount forfeited on 40 shares of Ajay = ` 240
Therefore, the balance of Forfeited Shares Account on 20 unissued shares
` 240
= × 20 = ` 120.
40
Unsolved Questions

1. Exe Ltd. issued 1,00,000 shares of ` 10 each at a premium of 20% payable as follows:
` 5 per share on application;
` 5 per share (including premium) on allotment; and
Balance on first and final call.
Excess payment on applications was to be applied towards amounts due on allotment and call.
The issue was subscribed in excess by 1,50,000 shares. Applicants for 2,30,000 shares were allotted
1,00,000 shares whereas applicants for 20,000 were sent letter of regret and application money was
refunded to them. The due amounts on allotment and call were received.
Pass the necessary Journal entries.
2. Parijan Ltd. issued 75,000 Equity Shares of ` 10 each at a premium of ` 2 per share. Total amount was
payable along with application. Raman had underwritten the issue for a commission of 3% to be paid
by issue of shares at par.
The issue was oversubscribed by 75,000 shares and allotment was made to all the applicants on pro rata.
Pass the Journal entries for the above.
3. Ghosh Ltd. made the second and final call on its 50,000 Equity Shares @ ` 2 per share on 1st January,
2018. The whole amount was received on 15th January, 2018 except on 100 shares allotted to Venkat.
Pass necessary Journal entries for the call money due and received by opening Calls-in- Arrears Account.
4. Grand Prospect Ltd. acquired land costing ` 1,00,000 and in payment allotted 1,000 Equity Shares of
` 100 each as fully paid. Further, the company issued 4,000 Equity Shares to the public. The shares
were payable as follows:
` 30 on application;
` 30 on allotment; and
` 40 on the first and final call.
The public applied for all shares which were allotted. All the moneys were received except the call on
200 shares.
Pass Journal entries and prepare the Balance Sheet of the company.
5. Super Star Ltd. makes an issue of 10,000 Equity Shares of ` 100 each, payable as follows:
On application and allotment ` 50;
On first call ` 25;
On second call ` 25.
Members holding 400 shares did not pay the second call and the shares are duly forfeited, 200 of
which are reissued as fully paid @ ` 50 per share.
Pass Journal entries in the books of the company.