VARUN VARSHNEY SAI VINAYAK B-6/10 Krishna Nagar,

(Chartered Accountant) Institute of Studies Near Lal Quarter, Delhi-51

CH: Issue of Shares

Assignment-2

Forfeiture of Shares

Q 1) X Ltd. Forfeited 500 Shares of Rs 10 each on the non-payment of both calls. Amount payable was as
follows:

Application Rs.2
Allotment Rs.4
I call Rs 3
II call Rs.1

Q 2) Z Ltd. Forfeited 900 Shares of Rs 20 each on the non-payment of allotment and first call. His shares
were forfeited immediately. Amount payable was as follows:

Application Rs.5
Allotment Rs.7
I call Rs 5
II call Rs.3

Q 3) A Ltd. Forfeited 1,500 Shares of Rs 10 each (issued at 10 % Premium) on the non-payment of allotment and first call. His
shares were forfeited after the second call was made. Amount payable was as follows:

Application Rs.3
Allotment Rs.4
I call Rs 1
II call Rs.3

Q 4) R Ltd. Forfeited 1,300 Shares of Rs 10 each (issued at 20 % premium) on the non-payment of both calls. His shares were
forfeited. Amount payable was as follows:
Application Rs.3
Allotment Rs.6 (including premium)
I call Rs 2
II call Rs.1

Q 5) D Ltd. Forfeited 2,500 Shares of Rs 10 each (issued at 30 % premium) on the non-payment of allotment and first call.
His share were forfeited after first call. Amount payable was as follows:
Application Rs.4 (including premium Re.1)
Allotment Rs.6 (including premium Re. 2)
I call Rs 1
II call Rs.2

Re-Issue of Shares
Q 6) X Ltd forfeited 500 shares of Mr. A on the nonpayment of both calls. Amount payable was as follows:
Application Rs.3
Allotment Rs.4
I call Rs.2
II call Rs.1
These shares are reissued @ Rs.8 per share as fully paid up.
(Capital Reserve Rs.2,500)

Q 7) X Ltd. Forfeited 1,000 shares of Mr. B on the nonpayment of Allotment and I call. His shares were forfeited. Amount
payable was as follows:
Application Rs.4
Allotment Rs2
I call Rs.3
II call Rs.1
Out of these 800 shares are reissued @ Rs.7 per share as Rs.9 paid up.
(Capital Reserve Rs 1,600)

“WE HAVE NO BRANCHES “

Specialization In: Financial Accounting, Cost Accounting, Management Accounting, Income Tax and
Auditing, Law and Financial Management. (All Levels) (M): - 8800261588, 8860649349 1
VARUN VARSHNEY SAI VINAYAK B-6/10 Krishna Nagar,
(Chartered Accountant) Institute of Studies Near Lal Quarter, Delhi-51

Q 8) Z Ltd forfeited 800 shares of Rs. 10 each on the nonpayment of both calls. Amount payable was as follows:
Application Rs.4
Allotment Rs.5 (including premium Rs.2)
I call Rs.3 (including premium Rs.1)
II call Rs.1
These shares are reissued at the discount of Rs.2 per share.
(Capital Reserve Rs.4,000)

Q 9) X Ltd forfeited 1,500 shares of Mr. B on the nonpayment of Allotment and I call. His shares were forfeited Immediately.
Amount payable was as follows:
Application Rs.4
Allotment Rs.3
I call Rs.1
II call Rs.2
Out of these 1,200 shares are reissued @ Rs. 13 per share as fully paid up.
(Capital Reserve Rs. 4,800)

Q 10) Z Ltd forfeited 800 shares of Mr. A on the nonpayment of allotment and & I call and 600 shares of Mr. B on the
nonpayment of both calls. Both of these shares were forfeited after second call. The amount payable was as follows:-
Application Rs.3
Allotment Rs.4
I call Rs.2
II call Rs.1
Out of these 1,100 shares are reissued @ Rs. 8 per share as fully paid up.
(Including all the shares of Mr. A)
(Capital Reserve Rs. 2,300)

Q 11) what will be the journal entries in the above case, if the reissued shares (included all the shares of B).

Q 12) what will be the journal entries in the above case, if Half of both shares were reissued @ Rs. 8 per share as fully paid up.

“WE HAVE NO BRANCHES “

Specialization In: Financial Accounting, Cost Accounting, Management Accounting, Income Tax and
Auditing, Law and Financial Management. (All Levels) (M): - 8800261588, 8860649349 2