{"id":135453,"date":"2023-03-31T15:39:21","date_gmt":"2023-03-31T10:09:21","guid":{"rendered":"https:\/\/www.mapsofindia.com\/my-india\/?p=135453"},"modified":"2023-03-31T15:39:21","modified_gmt":"2023-03-31T10:09:21","slug":"pass-necessary-journal-entries-for-forfeiture-and-reissue-of-forfeited-shares-in-the-following-cases","status":"publish","type":"post","link":"https:\/\/www.mapsofindia.com\/my-india\/quiz\/pass-necessary-journal-entries-for-forfeiture-and-reissue-of-forfeited-shares-in-the-following-cases","title":{"rendered":"Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following cases : &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.."},"content":{"rendered":"<h2>Question :Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following cases :<br \/>\n(i) Vipin Ltd. forfeited 10,000 shares of \u00a5 10 each issued at a<br \/>\npremium of % 1 per share, for non-payment of second and final<br \/>\ncall of \u00a5 2 per share. Out of these, 60% of the shares were<br \/>\nreissued at \u00a2 7 per share fully paid up.<br \/>\n(ii) Deepak Ltd. forfeited 800 shares of % 10 each, ~ 8 per share<br \/>\ncalled up, for non-payment of first call of 3 per share. All the<br \/>\nforfeited shares were reissued for 7 12 per share fully paid.<\/h2>\n<h3>The correct answer is -(i) Journal entries for Vipin Ltd.:<\/h3>\n<h3>On forfeiture of shares: Bank A\/c Dr. [10,000 shares x \u00a52] 20,000 Calls-in-arrears A\/c Dr. [10,000 shares x \u00a52] 20,000 Share capital A\/c (10,000 shares) 1,00,000 Share premium A\/c (10,000 shares x \u00a51) 10,000 To Share forfeited A\/c (10,000 shares) 1,00,000 To Calls in advance A\/c [10,000 shares x (\u00a510 + \u00a51 &#8211; \u00a52)] 90,000<\/h3>\n<h3>(Being shares forfeited for non-payment of final call)<\/h3>\n<h3>On reissue of shares: Bank A\/c Dr. [6,000 shares x \u00a57] 42,000 Share forfeited A\/c (6,000 shares) 60,000 Calls-in-arrears A\/c [6,000 shares x \u00a52] 12,000 To Share capital A\/c (6,000 shares) 60,000 To Share premium A\/c (6,000 shares x \u00a51) 6,000 To Calls in advance A\/c [6,000 shares x (\u00a510 + \u00a51 &#8211; \u00a52 &#8211; \u00a57)] 30,000<\/h3>\n<h3>(Being 60% of the forfeited shares reissued at \u00a57 per share fully paid)<\/h3>\n<h3>(ii) Journal entries for Deepak Ltd.:On forfeiture of shares: Bank A\/c Dr. [800 shares x \u00a53] 2,400 Calls-in-arrears A\/c Dr. [800 shares x \u00a53] 2,400 Share capital A\/c (800 shares) 8,000 To Share forfeited A\/c (800 shares) 8,000 To Calls in advance A\/c [800 shares x (\u00a510 &#8211; \u00a58 &#8211; \u00a53)] 1,600<\/h3>\n<h3>(Being shares forfeited for non-payment of first call)<\/h3>\n<h3>On reissue of shares: Bank A\/c Dr. [800 shares x \u00a57.5] 6,000 Share forfeited A\/c (800 shares) 8,000 Calls-in-arrears A\/c [800 shares x \u00a53] 2,400 To Share capital A\/c (800 shares) 8,000 To Share premium A\/c (800 shares x \u00a50.5) 400 To Calls in advance A\/c [800 shares x (\u00a510 &#8211; \u00a58 &#8211; \u00a53 &#8211; \u00a57.5)] 400<\/h3>\n<h3>(Being forfeited shares reissued for \u00a57.5 per share fully paid)<\/h3>\n","protected":false},"excerpt":{"rendered":"<p>Question :Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following cases : (i) Vipin Ltd. forfeited 10,000 shares of \u00a5 10 each issued at a premium of % 1 per share, for non-payment of second and final call of \u00a5 2 per share. Out of these, 60% of the shares [&hellip;]<\/p>\n","protected":false},"author":21830,"featured_media":132233,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12119],"tags":[],"class_list":{"0":"post-135453","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-quiz"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/135453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/users\/21830"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/comments?post=135453"}],"version-history":[{"count":1,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/135453\/revisions"}],"predecessor-version":[{"id":135454,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/135453\/revisions\/135454"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/media\/132233"}],"wp:attachment":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/media?parent=135453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/categories?post=135453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/tags?post=135453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}