Q. 2.

Give Journal Entries relating to forfeiture and re-issue:

(a) Alfa Limited issued 500 shares of T10 each at a premium of 2 payable
3 onapplication, 75 on allotment (including premium), z2 on First Call and 2
on Final Call to Mr. Harish. These shares were forfeited by the company for
non-payment of First and Second Calls. 300 of these shares were reissued to
Mr. Amar at 78 as fully paid.
(b) A company forfeited 200 shares of R10 each fully called up for non-
payment of R3 on First Call and 2 on Final Call. Out of these 100 shares were
reissued to Mr. Vikas as fully paid at 8 per share.
(c) 400 Shares of 710 each on which 78 per share has been called and 6 per
share has been paid were forfeited. Out of these 300 shares are re-issued for 7
each as fully paid. (2009 R)
 Q.1. Z Ltd. issued 5,00,000 Equity Shares of T10 each at par payable as to
2.50 per share along with application, 73.50 per share on allotment and the
balance on the first and final call to be made six months after allotment. The
issue was fully subscribed for.
Call on 300 shares was not received. These shares were forfeited. Half of
these shares were reissued as fully paid up @ 78 per share. Two months later,
the remaining forfeited shares were reissued as fully paid up@11 per share.
Pass Journal entries for the above mentioned transactions. (2008 SOL)
 Q. 8. X Ltd. invited applications for 2,00,000 equity shares of 710 each
payable as follows:
73 on Application
T3 on Allotment
74 on First and Final Call.
Applications were received for 1,80,000 shares and all of these were accepted.
All calls due were received except the final call on 4,000 shares which were
forfeited. 2,000 of these shares were reissued @8 per share as fully paid up.
Pass entries in the cash book and Journal of the company. Also prepare the
Balance Sheet of the company. (2008 R)
 Q. 11. Ganesh Limited offered 200
to the public 1,00,000
share, payable as follows: equity
each at a premium of 2 shares of t10
per
On Application
3
On Allotment
R4 (including premium)
On First call
3
On Second and Final call
72
Applications were received for 1,50,000 shares.
All applications were placed
under four categories and allotment was made as follows:
Category A to applicants of 40,000 shares
in full
Category B t o applicants of 60,000 shares 40,000 shares
Category C :to applicants of 30,000 shares 20,000 shares
Category D : to applicants of 20,000 shares Nil
Except in the case where applications were wholly rejected, excess application
money was not to be refunded but to be adjusted against money due on
allotment and calls. Arun, an applicant under category B to whom 400 shares
were allotted failed to pay the allotment money and on his failure to pay the first
call his shares were forfeited. Bimal, an applicant under category C to whom 300
shares were allotted failed to pay both the calls and his shares were also forfeited
after the second and final call. All the forfeited shares were reissued to Charan as
fully paid for 7 8 per share.
Show Cash Book entries, Journal entries and also prepare the Balance Sheet
of the company. (2011 SOL)
 of 10 each. The
Q. 6. S Ltd. invited applications for 1,00,000 equity shares
w a s payable aS
shares were issued at a premium of 5 per share. The amount
of
follows: On Application 73, on allotment 78 per share including premium
73, on first call 72 and on final call 2.
for 10,000 shares
Applications for 1,50,000 shares were received. Appiications made to
allotment was
were rejected and their money was returned. Pr0-rata
the remaining applicants on the following basis:
and
() Applicants for 80,000 shares were allotted 60,000 shares;
shares.
(ii) Applicants for 60,000 shares were allotted 40,000
failed to pay
X, who belonged to first category and was alloted 300 shares,
shares
the allotment money and on his further failure to pay the first call, his
were forfeited. Y, who belonged
to the second category and was alloted 200

shares also failed to pay two calls. His shares were forfeited after the final call.
The forfeited shares were reissued @ t12 per share fully paid up. Pass the
necessary Journal Entries. (2017 SOL)