Chapter-8 Company Share Capital

  1. Give the definition of ‘Share’. [1]

 

  1. What are Preference Shares? [1]

 

  1. What is Reserve Capital? [1]

 

  1. What is meant by ‘Authorised’ or ‘Registered’ Capital? [1]

 

  1. What are Preliminary Expenses? [1]

 

  1. Can a company issue shares at 6% premium in its Initial Public Offer (IPO)? Give reason.[1]

 

  1. What is meant by Capital Reserve? [1]

 

  1. What is meant by Private Placement of Shares? [1]

 

  1. What is meant by Oversubscription of shares? [1]

 

  1. Give any two alternative available to a company for the allotment of shares in case of over subscription.[1]

 

  1. What is meant by Forfeiture of Shares? [1]
  2. What is the main difference between oversubscription and undersubscription of shares?[1]

 

  1. What is meant by Buy back of Shares? [1]

 

  1. Identify the purpose of utilising the Securities premium that would maximise the return to shareholders.[1]

 

  1. Rk Limited wants to issue 2,00,000 Equity Shares of Rs.100 each at a premium. State clearly the conditions which should be fulfilled by the company to issue these shares.[3]

 

  1. Rk Limited has paid up capital of Rs.30,00,000 and a balance of Rs.7,50,000 in the

Securities premium Account. The company management do not want to carry over thisbalance. State the purpose for which this balance can be utilised.[3]

 

  1. (Issued at Par) Rk Limited issued 10,000 Equity Shares at the rate of 10 each

payable as follows:

On Application……………………………… Rs.3

On Allotment………………………………… Rs.4

On 1st Call……………………………………… Rs.2

On 2nd Call…………………………………….. Rs.1

Company paid Rs.10,000 as shares issue expenses. Give necessary journal entries[3]

 

  1. (Issued at Premium) Rk Limited issued 8,000 equity shares at Rs.10 each at a

premium of Rs.5 per share payable as follows:

On Application………………………………. Rs.5 (Including premium Rs.2)

On Allotment…………………………………. Rs.6 (including premium Rs.2)

On 1st Call……………………………………….. Rs.3 (including premium Re.1)

Remaining Balance………………………. on 2nd call

Rk Limited paid Rs.5,000 expenses on issue of shares. Give entries.

 

  1. (Lump sum payment at Par) Rk Limited issued 8,000 equity shares @ 10 each. All amounts have been received in lump sum. Share issued expenses were Rs.1,000. Give necessary journal entries.(3)

 

  1. (Lump sum payment at Premium) Rk Limited issued 6,000 Equity Shares @10 each @ 5% Premium. All amounts have been received in lump sum. Share issued expenses were Rs.500. Give necessary journal entries.(3)

 

  1. (Lump sum payment at Premium) Rk Limited issued 15,000 Equity Shares @10

each at a premium of 20%. All amounts have been received in Lump sum. Share issued expenses were Rs.1,000. Give necessary journal entries.(3)

 

  1. (Subscription less than 90%) Rk Limited issued 10,000 Equity Shares @ 10 each at a premium of 30%. Payable as follows:

On Application…………………………. Rs.5

On Allotment…………………………… Rs.4

Balance…………………………………….. on first Call

Applications were received for 8,000 shares. Give necessary journal entries.

 

Oversubscription ( Case – 1 when all excess applications are rejected)

 

  1. Rk Limited issued 8,000 Equity shares @ 10 each payable as follows:

Application…………………………. Rs.4

Allotment……………………………. Rs.5

Balance……………………………….. on first and final call

Applications were received for 10,000 Equity shares. All excess applications were

rejected and money was returned to the applicants. Give journal entries.[3]

 

  1. Rk Limited issued 15,000 Equity shares @ 10 each at a premium of 50%. Payable as

follows:

Application……………………………….. Rs.6 (including premium Rs.2)

Allotment………………………………….. Rs.5 (including premium Rs.2)

Balance……………………………………… on first & final call with remaining premium amount.

Applications were received for 18,000 Equity shares. All excess applications were

rejected and money was returned to the applicants. Share issue expenses were

Rs.4,000. Give journal entries.[3]

 

  1. Rk Limited issued 12,000 equity shares @10 each at a maximum premium payable as follows:

Application……………………………….. Rs.4

Allotment………………………………….. Rs.3

Balance……………………………………… on 1st Call

Applications were received for 14,000 shares. All excess applications were rejected

and money was returned to the applicants. Share issue expenses were Rs.2,000. Give

journal entries.

 

  1. Rk Limited issued 6,000 Equity Shares @10 each. Applications received for 8,000

shares. All excess applications were rejected and money was returned to the

applicants. All amounts have been received on application only. Give necessary entries.(3)

 

  1. Rk Limited issued 10,000 equity shares @10 each at a premium of 20%. Applications received for 12,000 shares. Excess applications were rejected and money was refunded to the applicants. Share issue expenses were Rs.800. Give necessary entries.(3)

 

  1. Rk Limited issued 7,000 Equity shares @10 each at a maximum premium.

 

  1. Applications received for 8,000 shares. All excess applications were rejected and

money refunded. All amounts have been received on application. Share issue

expenses were Rs.400. Give entries.(3)

 

Case -2 When all excess applications are accepted

 

  1. Rk Limited issued 10,000 Equity shares @ 10 each payable as follows:

Application……………………… Rs.2.50

Allotment………………………… Rs.4.50

Balance……………………………. on first and final call

Applications were received for 12,500 Equity shares. Pro-rata allotment was made to all the applicants. Excess money received on application was utilized on allotment

only. Give journal entries.(3)

 

  1. Rk Limited issued 12,000 Equity shares @ 10 each at a premium of 20%, payable as

follows:

Application…………………………… Rs.6 (including premium Rs.2)

Allotment……………………………… Rs. 4

Balance…………………………………. on first and final call

Applications were received for 15,000 Equity shares. Pro-rata allotment was made to all the applicants. Excess money received on application was utilized on allotment

only. Give journal entries.(3)

 

  1. Rk Limited issued 8,000 Equity shares @ 10 each at a Premium of 10%, payable as

follows:

Application………………………… Rs.3

Allotment………………………….. Rs. 4

Balance………………………………. on first and final call

Applications were received for 12,000 Equity shares. Pro-rata allotment was made to all the applicants. Excess money received on application was utilized on allotment

only. Give journal entries.

 

  1. Rk Limited issued 10,000 Equity Shares @10 each, payable as follows:

On Application……………………………. Rs.4

On Allotment……………………………… Rs.3

Balance……………………………………… on first and final Call

Applications were received for 15,000 equity shares. Pro-rata allotment was made to 12,000 only and their excess money was utilized on allotment only. Mohan one

shareholder to whom 200 shares were allotted failed to pay allotment and call. Give necessary journal entries.[4]

 

  1. Rk Limited issued 15,000 Equity Shares @10 each at a premium of 10%, payable as

follows:

On Application…………………………….. Rs.3

On Allotment………………………………. Rs.4

Balance…………………………………………. on first and final Call

Applications were received for 23,000 equity shares. Pro-rata allotment was made to 20,000 only and their excess money was utilized on allotment only. Sohan one

shareholder to whom 300 shares were allotted failed to pay allotment and call. Give

necessary journal entries.[4]

 

  1. Rk Limited issued 20,000 Equity Shares @10 each at a premium of 30%, payable as

follows:

On Application………………….. Rs.5 ( including premium Rs.2)

On Allotment……………………. Rs.4 ( including premium Re.1)

Balance……………………………. on first and final Call

Applications were received for 30,000 equity shares. Pro-rata allotment was made to 24,000 only and their excess money was utilized on allotment only. Rohan one

shareholder who applied for 960 shares failed to pay allotment and call. Givenecessary journal entries.[4]

 

  1. Rk Limited issued 20,000 Equity Shares @10 each, payable as follows:

On Application………………………….. Rs.3

On Allotment…………………………….. Rs.4

Balance………………………………………. on first and final Call

Applications were received for 30,000 equity shares. Pro-rata allotment was made to 27,000 only and their excess money was utilized on allotment only. Tanya one

shareholder Applied for 540 shares failed to pay allotment and call. Give necessary

journal entries.

 

  1. Rk Limited issued 12,000 Equity Shares @10 each at a premium of 10%, payable as

follows:

On Application…………………………. Rs.4

On Allotment……………………………. Rs.2

Balance……………………………………… on first and final Call

Applications were received for 18,000 equity shares. Pro-rata allotment was made to 15,000 only and their excess money was utilized on allotment only. Tanya one

shareholder to whom 300 shares were allotted failed to pay allotment and call. Give

necessary journal entries.[4]

 

  1. Rk Limited issued 60,000 shares of Rs.10 each at premium of Rs.2 per share payable

as:

On Application……………………………. Rs.3

On Allotment ………………………………. Rs. 5 (including premium)

Balance…………………………………………. on the first & final call

Applications were received for 84,000 shares. Allotment was made as follows:

Applicants of 40,000 shares ———— 20,000 shares

Applicants of 40,000 shares ———— 40,000 shares

Applicants of 4,000 shares ————– Nil

Mr. Kumar who had applied for 2,000 shares in category (a) and Gaurav who was

allotted 1,200 shares in category (b) failed to pay the allotment money. Calculate the

amount received on allotment and give necessary entries.[6]

 

  1. Rk Limited issued 30,000 shares of Rs.10 each at premium of Rs.2 per share payable

as:

On Application………………………….. Rs.3

On Allotment……………………………… Rs. 5 (including premium)

Balance……………………………………….. on the first & final call

Applications were received for 62,000 shares. Allotment was made as follows:

Applicants of 20,000 shares ———— 10,000 shares

Applicants of 40,000 shares ———— 20,000 shares

Applicants of 2,000 shares ————– Nil

Mr. Bobby who had applied for 1,500 shares in category (a) and Mohan who was

allotted 600 shares in category (b) failed to pay the allotment money. Calculate the

amount received on allotment and give necessary entries.[6]

 

  1. Rk Limited issued 75,000 shares of Rs.10 each at premium of Rs.2 per share payable

as:

On Application……………………………. Rs.3

On Allotment………………………………..Rs. 5 (including premium)

Balance on the first & final call

Applications were received for 1,27,500 shares. Allotment was made as follows:

Applicants of 75,000 shares ———— 37,500 shares[6]

(b) Applicants of 50,000 shares ———— 37,500 shares

(c) Applicants of 2,500 shares ————– Nil

Mr. Robert who had applied for 1,250 shares in category (a) and David who was

allotted 750 shares in category (b) failed to pay the allotment money. Calculate the

amount received on allotment and give necessary entries.

 

  1. Simran Limited issued 25,000 shares of Rs.10 each at a premium of 10% payable as

Rs.2 per share on application, Rs.3 on allotment and Rs.2 each on first and final call.

Applications were received for 35,000 shares. It was decided that:

Refuse allotment to the applicants of 5,000 shares.

Allot 5,000 shares to Mr. David who had applied for a similar number Allot the remaining shares on a pro-rata basis.

David failed to pay the allotment money and Tanya who belonged to category (c) and was allotted 1,500 shares, paid both the calls with allotment. Calculate the amount received on allotment.(6)

 

  1. Rk Limited issued 80,000 shares of Rs.10 each at a premium of Rs.2 payable as :

On Application…………………………… Rs. 2

On Allotment……………………………… Rs.4

Balance……………………………………….. in two equal instalments

Applications were received for 1,60,000 shares and the allotment was made as

follows:

Applications of 1,00,000 shares were allotted 60,000 shares

Applications of 60,000 were allotted 20,000 shares

Mahaveer singh, to whom 1,200 shares were allotted from category (a) failed to pay the

allotment money.Pass the necessary entries upto allotment only.(6)

 

  1. Rk Limited issued 90,000 shares of Rs.10 each at premium of Rs.2 per share payable

as:

On Application ………………………………. Rs.3

On Allotment …………………………………. Rs. 5 (including premium)

Balance……………………………………………. on the first & final call

Applications were received for 1,23,000 shares. Allotment was made as follows:

Applicants of 45,000 shares ———— 30,000 shares

Applicants of 75,000 shares ———— 60,000 shares

Applicants of 3,000 shares ————– Nil

Mr. David who had applied for 1,350 shares in category (a) and Mr. Tom who was

allotted 900 shares in category (b) failed to pay the allotment money. Calculate the

amount received on allotment and give necessary entries.(6)

 

  1. Mahaveer singh Limited issued 1,00,000 shares of Rs.10 each at a premium of 10% payable as

Rs.2 per share on application, Rs.3 on allotment and Rs.2 each on first and final call.

Applications were received for 1,60,000 shares. It was decided that:

efuse allotment to the applicants of 20,000 shares.

Allot 40,000 shares to Mr. Kumar who had applied for a similar number

Allot the remaining shares on a pro-rata basis.

Kumar failed to pay the allotment money and Mr. Singh who belonged to category(c)

and was allotted 6,000 shares, paid both the calls with allotment. Calculate the

amount received on allotment and give entries.

 

  1. Rk Limited issued 25,000 Equity Shares of Rs.20 each, at a premium of 10%, payable

as:

On Application………………………………………….. Rs.5 per share

On Allotment…………………………………………….. Rs.6 per share

On First Call………………………………………………. Rs.4 per share

On Final Call……………………………………………… Rs.3 per share

Applications were received for 37,500 shares and the Directors made pro-rata

allotment to the applicants for 30,000 shares.

X did not pay allotment and first call money on 200 shares allotted to him while Y did not pay the final call on his 100 shares. Give necessary journal entries.(6)

 

  1. Mahaveer singh Ltd. issued 75,000 shares of Rs.10 each at a premium of Rs.2 per share payable as Rs.3 on application, Rs.5 (including premium) on allotment and the balance in equal installments over two calls. Applications were received for 1,38,000 shares. The directors resolved to allot as follows:

Applicants of 60,000 shares …………………………. 45,000 Shares

Applicants of 60,000 shares …………………………. 30,000 Shares

Applicants of 18,000 shares …………………………. Nil

Himanshu who had applied for 3,000 shares in category (a) and Rohit who was

allotted 1,200 shares in category (b) failed to pay the allotment money. Calculate the

amount received on allotment and give entries.(6)

 

Topic : Forfieture & Reissue of Shares Part 1

 

  1. Mahaveer singh Limited invited applications for the allotment of 40,000 equity shares of Rs.10

each at a premium of 10%. The amount was payable as follows:

On Application Rs.2 per share; On Allotment Rs.3 per share; Balance on 1st & final call. Applications for 55,000 shares were received. Applications for 5,000 shares were rejected. Shares were allotted on pro-rata basis to the remaining applicants. Excess applications money received on application was adjusted towards sums due on allotment. All calls were made and were duly received. Yuvraj who had applied for 1,000 shares failed to pay the allotment and first and final call. His shares were

forfeited. The forfeited shares were reissued for Rs.12,000 fully paid up.

Pass necessary journal entries.[6]

 

  1. Mahaveer singh Limited invited applications of issuing 20,000 Equity Shares of Rs.100 each at a premium of 6%. The amount was payable as follows:

On Application ……………………………………. Rs.20 per share (including premium)

On Allotment ………………………………………. Rs.44 per share

Balance ………………………………………………… on first and final call

Applications for 26,000 shares were received. Applications for 1,000 shares were

rejected and pro-rata allotment was made to the remaining applicants. Overpayment

receved on application was adjusted towards sum due on allotment. All calls were

made and were duly received except Mr. Kumar, who had applied for 500 shares

failed to pay allotment and call money. His shares were forfeited. The forfeited shares were reissued at Rs.44,000 fully paid up.Give necessary journal entries.[6]

 

  1. Mahaveer singh Limited invited applications for issuing 1,40,000 equity shares of Rs.10 each at a premium of Rs.2 per share. The amount was payable as follows:

On Application Rs.4 (Including premium); On Allotment Rs.3 per share; Balance on 1st & final call.

Applications for 2,00,000 shares were received. Applications for 20,000 shares were

rejected. Shares were allotted on pro-rata basis to the remaining applicants. Excess

application money received on application was adjusted towards due on allotment.

All calls were made and were duly received except first and final call on 1,400shares allotted to Mr. Bhatia. His shares were forfeited. The forfeited shares were reissued for Rs.15,400 fully paid up.Pass necessary journal entries.[6]

 

  1. Mahaveer singh Limited invited applications of 8,000 Equity shares of Rs.100 each at a premium of 10%. The amount was payable as follows:

On Application……………………………. Rs.30 per share

On Allotment ……………………………… Rs.25 per share

Balance………………………………………… On first and final call

Applications for 14,000 shares were received. Applications for 2,000 shares were

rejected and the application money was refunded. To the remaining applications

shares were allotted on pro-rata and their excess applicants money was adjusted

towards sums due on allotment.

All calls were made and were duly received except the first and final call on 1,600

shares allotted to Mr.David. His shares were forfeited. The forfeited shares were

reissued to Mr.John for at Rs.96,000.Give necessary journal entries.[6]

 

  1. Rk Limited invited applications of issuing 40,000 Equity Shares of Rs.10 each at a

premium of Rs.2 per share. The amount was payables as follows:

On Application……………………………. Rs.6 per share (including premium)

On Allotment………………………………. Rs.3 per share

Balance………………………………………… On First and Final Call

Applications for 45,000 shares were received. Applications for 2,500 shares were

rejected and pro-rata allotment was made to the remaining applicant. Overpayments received on application was adjusted towards sum due on allotment. All calls were made and were duly received except the allotment and final call on 800 shares allotted to Mr. Mahaveer singh. These shares were forfeited and the forfeited shares were reissued for Rs.9,200 fully paid up. Give necessary journal entries.(6)

 

  1. Mahaveer singh Limited invited applications of issuing 50,000 Equity Shares of Rs.500 each at a premium of Rs.100 each. The amount was payable as follows:

On Application………………………………. Rs.200 per share

On Allotment…………………………………. Rs.300 per share (including premium)

Balance…………………………………………….On First & Final Call

Applications for 1,00,000 shares were received. Applications for 25,000 shares were

rejected and the application money was refunded. Pro-rata allotment was made to

the remaining applicants. Amount overpaid with application was adjusted towards

sums due on allotment. All calls were made and were duly received except the first and final call on 50 Shares allotted to Mr. Honey Singh. These shares were forfeited. The forfeited shares reissued to Mr. Singh for Rs.30,000 fully paid up.

Give necessary journal entries.

 

  1. Rk Limited invited applications for 80,000 Equity Shares of Rs.100 each at a premium of Rs.20 per share. The amount was payable as follows:

On Application……………………………….. Rs.30 per share

On Allotment………………………………….. Rs.70 per share (including premium)

Balance……………………………………………. on first and final call

Applicants for 1,20,000 shares were received. Applications for 20,000 shares were

rejected and the application money on these shares was refunded. Pro-rata allotment was made to the remaining applicants and excess money received from them with applicants was adjusted towards sums due on allotment.

All calls were made and were duly received except the first and final call on 1,000

shares alloted to Mr. Rocky. These shares were forfeited. The forfeited shares were

afterwards reissued to Mr. Bobby for Rs.1,02,000 fully paid up.(6)

 

 

  1. Rk Limited invited applications for 1,00,000 Equity Shares of Rs.500 each at a

premium of 10%. The amount was payable as follows:

On Application…………………………………. Rs.100 each

On Allotment……………………………………. Rs.150 each

Balance …………………………………………….. On first and final call

Applications for 2,00,000 shares were received. Applications for 50,000 shares were

rejected and application money was refunded. Pro-rata allotment was made to the

remaining applicants. Excess application money received from the applicants, whom

pro-rata allotment was made, was adjusted towards the sum due on allotment. All

calls were made and were duly received except the first and final call on 200 shares

help by Mr. Kumar. His shares were forfeited. The forfeited shares were reissued to

Mr. Kuku for Rs.95,000 fully paid up.(6)

 

  1. Mahaveer singh Limited issued 80,000 shares of Rs.10 each at a maximum premium, payable as:

On Application…………………………….. Rs.2 per share

On Allotment……………………………….. Rs.2 per share

On First Call ……………………………….. Rs.2 per share

On Final Call ………………………………. Rs.3 per share

Applications were received for 1,20,000 shares and allotment was made on pro-rata

basis to 80% of applicants. Mr. Honey Singh to whom 4,000 shares were allotted paid only the application money, and Mr. Mikka who had applied for 6,000 shares paid the entire call money due along with the allotment. Give necessary Journal entries.

 

  1. Randhawa Limited invited applications for issuing 50,000 Equity shares of Rs.100

each at a premium of Rs.60 per share. The amount was payable as follows:

On application……………………… Rs.30 per share (including premium Rs.10)

On allotment………………………… Rs.70 per share (including premium Rs.50)

On first and final call………….. the balance amount.

  1. Applications for 47,500 shares were received. Shares were allotted to all the

applicants and the company received all money due on allotment except Sharma who had been allotted 250 shares, and his shares were immediately forfeited. Afterwards first and final call was made. Verma did not pay the first and final call on his 500 allotted shares. His shares were also forfeited. 50% of the forfeited shares of both Sharma and Verma were reissued for Rs.90 per share fully paid up.Pass necessary journal entries.(6)

 

  1. Mahaveer singh Limited invited applications for issuing 20,000 Equity shares of Rs.10 each.The amount was payable as follows:

On Application Rs.1; On Allotment Rs.2; On First Call Rs.3; and Balance on Second call.The issue was fully subscribed. Bheem to whom 200 shares were allotted, failed to pay the allotment money and his shares were forfeited immediately after allotment. Nakul to whom 300 shares were allotted, failed to pay the first call. His shares were also forfeited after the first call. Afterwards the second call was made. Vishnu to whom 100 shares were allotted failed to pay the second and final call. His shares were also forfeited. All the forfeited shares were reissued at Rs.9 per share fully paid up. Pass necessary journal entries.

 

  1. Mahaveer singh Limited invited applications for the issue of 60,000 Equity shares of Rs.10 each at a premium of Rs.1 per share. Applications were received for 80,000 shares. 10% of the total applications were rejected and the balance were allotted shares on pro-rata basis. The amounts were payable as follows:

Rs.2 on application; Rs.3 on allotment and Balance on the first and final call.

Malhotra who had applied for 4,800 shares failed to pay the allotment money and his shares were immediately forfeited. Sharma who was allotted 3,000 shares, paid only Rs.6,000 on allotment. On the failure to pay the first call, Sharma’s shares were also forfeited. Pass necessary journal entries.[8]

 

  1. Rk Limited issued 1,00,000 Equity Shares of Rs.10 each at a premium of Rs.2 per

share, payable as follows:

On Application…………………… Rs.3 per share

On Allotment……………………… Rs.6 per share (Including premium)

On First & Final Call ——–Balance Amount

Applications were received for 1,50,000 shares and a pro-rata allotment was made as follows:

Applicants of 80,000 shares ———————— Allotted 60,000

Applicants of 70,000 shares ———————— Allotted 40,000

All amounts due were received except the allotment and call money from Mr. Ram

who had applied for 2,400 shares (out of group of 80,000 shares). All his shares were forfeited. The forfeited shares were reissued for Rs.7 per share fully paid up.

Give journal entries.

 

 

  1. Rk Limited issued for public subscription 75,000 shares of the value of Rs.100 each at a premium of 10% payable per share as Rs.20 on application; Rs.30 on allotment and 40 on call. The company received applications for 1,50,000 shares. The allotment was done as under:

Applicants of 15,000 shares were allotted 5,000 shares.

Applicants of 70,000 shares were allotted 40,000 shares.

Remaining applicants were allotted 30,000 shares.

After adjusting excess money in allotment, the money was returned.

Mr. Mahaveer singh, a shareholder who had applied for 3,500 shares of group (b), failed to pay

allotment and call money. Mr. David, another shareholder who was allotted 3,000 shares, paid the call money along with the allotment. David also belonged to group (b).Pass necessary journal entries and show your working notes clearly.

 

  1. X Ltd. forfeited 400 shares of Rs.100 each, Rs.70 called up, on which the shareholders had paid application and allotment money of Rs.50 per share. Out of these, 300 shares were re-issued to Naresh as Rs.70 paid up for Rs.80 per share. Give entries.

 

  1. Y Ltd. forfeited 360 shares of Rs.10 each, Rs.8 called up, issued at a premium of Rs.2

per share to R for non-payment of allotment money of Rs.5 per share (including

premium). Out of these, 320 shares were re-issued to Sanjay as Rs.8 called up for

Rs.10 per share fully paid up. Give entries.

 

  1. Z Ltd. forfeited 60 shares of Rs.100 each issued at a premium of Rs.10 per share for

non-payment of first and final call money of Rs.30 per share. Out of these, 40 shares

were re-issued at Rs.30 per share fully paid up. Give entries.

 

  1. Rk Limited forfeited 200 shares of Rs.10 each issued at a premium of Rs.2 per share

for the non-payment of allotment of Rs.3 per share (including premium). The first

and final call of Rs.4 per share has not been made yet. 50% of forfeited shares were

reissued at Rs.8 per share fully paid up. Give journal entries.

 

  1. Mahaveer singh Limited forfeited 1,000 Shares of Rs.10 each issued at a premium of Re 1 per

share for the non-payment of allotment of 5 per share (including premium). The first and final call of Rs.2 per share has not been made yet. 50% of forfeited shares were reissued at Rs.8 per share fully paid up. Give journal entries.

 

Author: Ravi Kashyap

Commerce Expert

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