Accounting for Share Capital Accountancy - Accounting for Share Capital

If a share of 10 issued at a premium of ₹ 2 on which the full amount has been called and 78 (including premium) paid is forfeited, the Share Capital Account should be debited with.

1. ₹ 12.
2. ₹ 10.
3. ₹ 8.
4. ₹ 6.

When shares are forfeited, Share Capital Account is debited with

1. Nominal value of shares.
2. Called-up value of shares.
3. Paid-up value of shares.
4. Market value of shares.

The part of authorised capital which can be called-up only on the company being wound up is called.

1. Issued Capital.
2. Unsubscribed Capital.
3. Reserve Capital.
4. None of these.

If on shares of nominal value of ₹ 10, ₹ 8 have been called-up and received by the company, it will be shown as.

1. Subscribed and fully paid-up.
2. Subscribed but not fully paid-up.
3. Issued share capital.
4. None of these.

If on shares of nominal value of ₹ 10, ₹ 10 have been called-up and also received, it will be shown as.

1. Subscribed and fully paid-up.
2. Subscribed but not fully paid-up.
3. Issued share capital.
4. None of these.

(Forfeiture and Reissue of shares). Complete the following Journal entries:

Give necessary journal entries:
The Directors of Devendra Ltd. resolved on 1st January, 2010 that Equity Shares of ₹ 10 each, ₹ 8 paid-up be forfeited for non-payment of final call of ₹ 2. On 1st February, 60 of these shares were reissued @ ₹ 7 per share as fully paid-up.

Ghosh Ltd. made the second and final call on its 50,000 Equity Shares @ ₹ 2 per share on 1st January, 2016. The entire amount was received on 15th January, 2016 except on 100 shares allotted to Venkat. Pass necessary journal entries for the call money due and received by opening Calls-in-Arrears Account.

X Ltd. invited application for 10,000 Equity Shares of ₹ 10 each issued at par. The amount was payable on application. The issue was oversubscribed by 2,000 shares and allotment was made on pro rata basis. Pass necessary Journal entries.

The Directors of a company forfeited 300 shares of ₹ 10 each issued at a premium of ₹ 3 per share, for the non-payment of the first call money of ₹ 2 per share. The final call of ₹ 2 per share has not been made. Half the forfeited shares were reissued at ₹ 1,500 as fully paid-up. Record the journal entries for the forfeiture and reissue of shares.

Himmat Ltd has authorised share capital of ₹ 50,00,000 divided into 5,00,000 Equity Shares of ₹ 10 each. It has existing issued and paid up capital of ₹ 5,00,000. It further issued to public 1,50,000 Equity Shares at par for subscription payable as under:

On Application:	₹ 3
On Allotment:	₹ 4 and
On Call:	Balance Amount.

The issue was fully subscribed and allotment was made to all the applicants. Call was made during the year and was duly received.
Show share capital of the company in the Balance Sheet of the Company.

Pass necessary journal entries in the books of the company for the following transactions:
Vishesh Ltd. forfeited 1,000 Equity Shares of ₹ 10 each issued at a premium of ₹ 2 per share for non-payment of allotment money of ₹ 5 per share including premium. The final call of ₹ 2 per share was not yet called on these shares. Of the forfeited shares 800 shares were reissued at ₹ 12 per share as fully paid-up.
The remaining shares were reissued at ₹ 11 per share fully paid-up.

X Ltd. forfeited 900 Equity Shares of ₹ 100 each for the non-payment of allotment money of ₹ 30 per share and the first call of ₹ 20 per share. The second and final call of ₹ 25 per share has not been made. The forfeited shares were reissued for ₹ 90 per share, ₹ 75 paid-up. Journalise the above.

Show the forfeiture and reissue entries under the following cases:
Y Ltd. forfeited 400 shares of ₹ 10 each, fully called-up, held by Mr. B for non-payment of final call money of ₹ 4 per share. These shares were reissued to Mr. T at ₹ 12 per share as fully paid-up.

Lennova Ltd. has authorised share capital of ₹ 1,00,00,000 divided into 1,00,000 Equity Shares of ₹ 100 each. It has existing issued and paid up capital of ₹ 25,00,000. It further issued to public 25,000 Equity Shares at a premium of 20% for subscription payable as under:

On Application:	₹ 30
On Allotment:	₹ 60 and
On Call:	Balance Amount.

The issue was fully subscribed and allotment was made to all the applicants. The company did not make the call during the year.
Show share capital of the company in the Balance Sheet of the Company.
Note: Problems related to Disclosure of share Capital in compny's balance sheet are also given under the head issue of shares at per and at premium.

U.P. Sugar Works Ltd. was registered on 1st January, 2014 with an authorised capital of ₹ 15,00,000 divided into 15,000 shares of ₹ 100 each. The company issued on 1st April, 2014, 5,000 shares of ₹ 100 each at a premium of ₹ 5 per share payable ₹ 25 per share on application, ₹ 30(including premium) on allotment and the balance in two equal installments of ₹ 25 each on 1st July ad 1st October respectively. All the allotments and call moneys were paid when due, except in case of one shareholder who failed to pay the final call on 100 shares held by him. His shares were forfeited on 1st November after giving him a due notice. Show necessary entries in the books of the company to record these transactions.

A company issued 10,000 Equity Shares of ₹ 10 each at a premium of ₹ 3 per share payable ₹ 5 on application, ₹ 5 (including premium) on allotment and the balance on first call. All the shares offered were applied for and allotted. All the money due on allotment was received except on 200 shares. Call was made. All the amount due thereon was received except on 300 shares. Directors forfeited 200 shares on which both allotment and call money were not received.
Pass necessary journal entries to record the above.

BBG Ltd. hsd issued 1,00,000 equity of ₹ 10 each at a premium of ₹ 3 per share payable with application money. While passing the Journal entries related to the issue, some blanks are left. You are required to complete these blanks.

Sony Media Ltd.issued 50,000 shares of ₹ 10 each payable ₹ 3 on application, ₹ 4 on allotment and balance on first and final call. Applications were received for 1,00,000 shares and allotment was made as follows:

1. Applicants for 60,000 shares were allotted 30,000 shares,
2. Applicants for 40,000 shares were allotted 20,000 shares,

Anupam to whom 1,000 shares were allotted from category,

1. Failed to pay the allotment money. Pass journal entries up to allotment.

Sugandh Ltd. issued 60,000 shares of ₹ 10 each at a premium of ₹ 2 per share payable as ₹ 3 on application, ₹ 5(including premium) on allotment and the balance on first and final call. Applications were received for 92,000 shares. The Directors resolved to allot as:

(i)	Applicants of 40,000 shares	30,000 shares,
(ii)	Applicants of 50,000 shares	30,000 shares,
(iii)	Applicants of 2,000 shares	Nil.

Mohan, who had applied for 800 shares in Category,

1. Sohan, who was allotted 600 shares in Category.
2. Failed to pay the allotment money. Calculate amount received on allotment.