Accountancy 6 Marks Question

VXN Ltd. invited applications for issuing 50,000 equity shares of ₹ 10 each at a premium of ₹ 8 per share. The amount was payable as follows:
On Application: ₹ 4 per share (including ₹ 2 premium).
On Allotment: ₹ 6 per share (including ₹ 3 premium).
On First Call: ₹ 5 per share (including ₹ 1 premium).
On Second and Final Call: Balance Amount.
The issue was fully subscribed. Gopal, a shareholder holding 200 shares, did not pay the allotment money and Madhav, a holder of 400 shares, paid his entire share money along with the allotment money. Gopal’s shares were immediately forfeited after allotment. Afterwards, the first call was made. Krishna, a holder of 100 shares, failed to pay the first call money and Girdhar, a holder of 300 shares, paid the second call money also along with the first call. Krishna’s shares were forfeited immediately after the first call. Second and final call was made afterwards and was duly received. All the forfeited shares were reissued at ₹ 9 per share fully paid up.
Pass necessary journal entries for the above transactions in the books of the company.

‘Software Ltd.’ invited applications for issuing 70,000 equity shares of ₹ 10 each on which ₹ 7 per share were called up, which were payable as follows: The amount was received as follows: The directors forfeited 30,000 shares on which less than ₹ 7 per share were received. Later on the forfeited shares were re-issued at ₹ 5 per share, as ₹ 7 per share paid up.
Pass necessary journal entries for the above transactions in the books of the company.

Luxury Cars Ltd.’ invited applications for issuing 10,000 equity shares of ₹ 50 each at a premium of ₹ 100 per share. The amount was payable as follows: The issue was fully subscribed. A shareholder holding 400 shares paid his entire share money at the time of application. Another shareholder holding 300 shares did not pay the allotment money. His shares were forfeited. The forfeited shares were later on re-issued for ₹ 90 per share as fully paid up.
Pass necessary journal entries for the above transactions in the books of the company.

GY Ltd. invited applications for issuing 85,000 equity shares of ₹ 10 each at a discount of 10%. The amount was payable as follows: Applications for 2,00,000 shares were received. Applications for 30,000 shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The first and final call was made. All money was received except on 1,700 shares applied by Hari. His shares were forfeited. The forfeited shares were re-issued at the maximum discount permissible under the law.
Pass necessary journal entries for the above transactions in the books of the company.

NY Ltd. invited applications for issuing 90,000 equity shares of ₹ 10 each at a premium of ₹ 5 per share. The amount was payable as follows: Applications for 2,70,000 shares were received. Applications for 90,000 shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The first and final call was made. The amount was duly received except on 1,800 shares applied by Govind. His shares were forfeited. The forfeited shares were re-issued at ₹ 8 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of the company.

BBG Ltd. had issued 1,00,000 equity shares of ₹ 10 each at a premium ₹ 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.

‘X Ltd.’ invited applications for issuing 10,000 equity shares of ₹ 100 each at a premium of ₹ 100 per share. The amount was payable as follows: The issue was fully subscribed. A shareholder holding 500 shares paid the full share money with application. Another shareholder holding 200 shares failed to pay the first and final call money. His shares were forfeited. The forfeited shares were re-issued for ₹ 19,000 as fully paid up.
Pass necessary journal entries for the above transactions in the books of the company.

‘Y Ltd.’ invited applications for issuing 15,000 equity shares of ₹ 10 each on which ₹ 6 per share were called up, which were payable as follows:
On application – ₹ 2 per share
On allotment – ₹ 1 per share
On first call – ₹ 3 per share
The issue was fully subscribed and the amount was received as follows:
On 10,000 shares – ₹ 6 per share
On 3,000 shares – ₹ 3 per share
On 2,000 shares – ₹ 2 per share
The directors forfeited those shares on which less than ₹ 6 per share were received. The forfeited shares were re-issued at ₹ 9 per share, as ₹ 6 per share paid up.
Pass necessary journal entries for the above transactions in the books of the company.

KY Ltd. invited applications for issuing 60,000 equity shares of ₹ 10 each at a premium of ₹ 4 per share. The amount was payable as follows: Applications for 2,00,000 shares were received. Applications for 80,000 shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The first and final call was made. The amount was duly received except on 600 shares applied by Mukesh. His shares were forfeited. The forfeited shares were re-issued at ₹ 8 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of KY Ltd.

JJK Ltd. invited applications for issuing 50,000 equity shares of ₹ 10 each at par. The amount was payable as follows: The issue was oversubscribed three times. Applications for 30% shares were rejected and money refunded. Allotment was made to the remaining applicants as follows:

Category	No. of Shares Applied	No. of Shares Allotted
I	80,000	40,000
II	25,000	10,000

Excess money paid by the applicants who were allotted shares was adjusted towards the sums due on allotment.
Deepak, a shareholder belonging to Category I, who had applied for 1,000 shares, failed to pay the allotment money. Raju, a shareholder holding 100 shares, also failed to pay the allotment money. Raju belonged to Category II. Shares of both Deepak and Raju were forfeited immediately after allotment. Afterwards, first and final call was made and was duly received. The forfeited shares of Deepak and Raju were reissued at ₹ 11 per share fully paid up.
Pass necessary journal entries for the above transactions in the books of the company.

SK Ltd invited applications for issuing 3,20,000 equity shares of ₹ 10 each at a premium of ₹ 5 per share. The amount was payable as follows: Applications for 4,00,000 shares were received. Applications for 40,000 shares were rejected and application money refunded. Shares were alloted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Jeevan holding 800 shares failed to pay the allotment money and his shares were immediately forfeited. Afterwards final call was made, Ganesh who had applied for 2,700 shares failed to pay the final call. His shares were also forfeited. Out of the forfeitedshares 1,500 shares were re-issued at ₹ 8 per share fully paid up. The re-issued shares included all the forfeited shares of Jeevan.
Pass necessary journal entries for the above transactions in the books of the company.

'BMY Ltd.' invited applications for issuing 1,00,000 equity shares of ₹ 10 each at a premium of ₹ 10 per share. The amount was payable as follows: The issue was fully subscribed. A shareholder holding 300 shares paid the full share money with application. Another shareholder holding 200 shares failed to pay the allotment money. His shares were forfeited. Later on these shares were re-issued for ₹ 4,000 as fully paid up.
Pass necessary journal entries for the above transactions in the books of BMY Ltd.

'Blue Star Ltd.' was registered with an authorised capital of ₹ 2,00,000 divided into 20,000 shares of ₹ 10 each. 6,000 of these shares were issued to the vendor for building purchased. 8,000 shares were issued to the public and ₹ 5 per share were called up as follows: The amounts received on these shares were as follows: The directors forfeited 750 shares on which ₹ 2 per share were received.
Pass necessary journal entries for the above transactions in the books of Blue Star Ltd.

X Ltd. invited applications for issuing 75,000 equity shares of ₹ 10 each at a premium of ₹ 5 per share. The amount was payable as follows: Applications for 3,00,000 shares were received. Applications for 2,00,000 shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The first and final call was made. The amount was duly received except on 1,500 shares applied by Ravi. His shares were forfeited. The forfeited shares were re-issued at a discount of ₹ 4 per share.
Pass necessary journal entries for the above transactions in the books of X Ltd.

Y Ltd. invited applications for issuing 80,000 equity shares of ₹ 10 each at a discount of 10%. The amount was payable as follows: Applications for 2,00,000 shares were received. Applications for 40,000 shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The first and final call was made. All money was received except on 1,600 shares applied by Rohan. His shares were forfeited. The forfeited shares were re-issued at the maximum discount permissible under the law.
Pass necessary journal entries for the above transactions in the books of Y Ltd.

1. X Ltd. forfeited 200 shares of ₹ 100 each ₹ 70 called up, on which the shareholders, had paid application and allotment money of ₹ 50 per share. Out of these, 150 shares were re-issued to Naresh as ₹ 70 paid up for ₹ 80 per share.
2. Y Ltd. forfeited 180 shares of ₹ 10 each, ₹ 8 called up, issued at a premium of ₹ 2 per share to R for non-payment of allotment money of ₹ 5 per share (including premium). Out of these, 160 shares were re-issued to Sanjay as ₹ 8 called up for ₹ 10 per share fully paid up.
3. Z Ltd. forfeited 30 shares of ₹ 100 each issued at a discount of ₹ 10 per share for nonpayment of first and final call money of ₹ 30 per share. Out of these, 20 shares were reissued at ₹ 30 per share fully paid up.

Dinesh Ltd. invited applications for issuing 10,000 Equity shares of ₹ 10 each. The amount was payable as follows:
On Application ₹ 1
On Allotment ₹ 2
On First Call ₹ 3
On Second and Final Call - Balance
The issue was fully subscribed. Ram to whom 100 shares were allotted, failed to pay the allotment money and his shares were forfeited immediately after allotment. Shyam to whom 150 shares were allotted, failed to pay the first call. His shares were also forfeited after the first call. Afterwards the second and final call was made. Mohan to whom 50 shares were allotted failed to pay the second and final call. His shares' were also forfeited. All the forfeited shares were- re-issued at f 9 per share fully paid up. Pass necessary journal entries in the books of Dinesh Ltd.

Moti Ltd. invited applications for issuing 10,00,000 Equity shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows:
On Application ₹ 5 (including premium)
On Allotment ₹ 4
On First and Final Call ₹ 3
Applications for 15,00,000 shares were received. Applications for 3,00,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Excess application money was utilized towards sums due on allotment. Giri who had applied for 24,000 shares failed to pay the allotment and call money. His shares were forfeited. Out of the forfeited shares 10,000 shares were reissued for f 8 per share fully paid up. Pass necessary journal entries in the books of Moti Ltd.

X Ltd. issued 50,000 shares of ₹ 10 each at a premium of ₹ 2 per share payable as follows:
₹. 3 on Application
₹ 6 on Allotment (including premium) and
₹ 3 on call.
Applications were received for 75,000 shares and pro-rata allotment was made as follows:
To the applicants of 40,000 shares, 30,000 shares were issued and for the rest 20,000 shares were issued. All moneys due were received except the ‘allotment and call money from Ram who had applied for 1,200 shares (out of the group of 40,000 shares). All his shares were forfeited. The forfeited shares were re-issued for ₹ 8 per share fully paid-up.
Pass necessary journal entries for the above transactions.

Janata Ltd. invited applications for issuing 2,00,000 equity shares of ₹ 10 each at a discount of 10%. The amount was payable as follows:
On Application - ₹ 2 per share
On Allotment - ₹ 3 per share
On First and Final call - balance amount
The issue was undersubscribed to the extent of 20,000 shares. Shares were allotted to all the applicants. All calls were made and were duly received. ‘A’ to whom
1,500 shares were allotted, failed to pay allotment and call money and ‘B’ to whom 1,200 shares were allotted paid the full amount due at the time of allotment. The shares on which allotment and call money was not received were forfeited. The forfeited shares were re-issued at ₹ 8 per share fully paid up.
Pass necessary journal entries in the books of Janata Ltd. for the above transactions.

Alpha Co. issued to the public for subscription 40,000 shares of ₹ 10 each at a discount of 10% payable as ₹ 2 each on application, allotment and first call and ₹ 3 on the fmal calL Applications were received for 60,000 shares and allotment was made pro-rata to 80% of applicants; R to whom 2,000 shares were allotted paid only the, application money, and S who had applied for 3,000 shares, paid the entire call money due along with the allotment. Pass necessary journal entries to record the above transactions.

Janata Ltd. invited applications for issuing 70,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows:

On application	₹ 4 per share (including premium)
On allotment	₹ 3 per share
On first and final call	---- Balance.

Applications for 1,00,000 shares were received. Applications for 10,000 shares were rejected. Shares were allotted to the remaining applicants on pro-rata basis. Excess money received with applications were adjusted towards sums due on allotment. All calls were made and were duly received except first and final call on 700 shares allotted to Kanwar. His shares were forfeited. The forfeited shares were re-issued for Rs. 77,000 fully paid up.
Pass necessary journal entries in the books of the company for the above transactions.

Shubham Ltd. invited applications for the allotment of 80,000 equity shares of ₹ 10 each at a discount of 10%. The amount was payable as follows:

On application	₹ 2 per share
On allotment	₹ 3 per share
On first and final call	----Balance.

Applications for 1,10,000 shares were received. Applications for 10,000 shares were rejected. Shares were allotted on pro-rata basis to the remaining applicants. Excess application money received on application was adjusted towards sumsdue on allotment. All calls were made and were duly received. Manoj who’ had applied for 2000 shares failed to pay the allotment and first and final call. His shares were forfeited. The forfeited shares were re-issued for ₹ 24,000 fully paid up.
Pass necessary journal entries in the books of the company for the above transactions.

Ashish Ltd. invited applications for issuing 75,000 Equity Shares of ₹ 10 each at a discount of 10%. The amount was payable as follows: Applications for 1,50,000 shares were received. Applications for 25,000 shares were rejected and application money of these applicants was refunded. Share swere allotted on pro-rata basis to the remaining applicants. Excessmoney received with these applications was adjusted to ward sums due on allotment. Suman, who had applied for 1250 shares, failed to pay allotment and first and final call money. Dev did not pay the first and final call on his 1000 shares. All these shares were forfeited and later on 1000 of these shares were re-issued at ₹ 17 per share fully paid up. The re-issued shares included all the shares of Suman.
Pass the necessary Journal entries in the books of Ashish Ltd. for the above transactions.

R.K. Ltd. invited applications for issuing 70,000 Equity Shares of ₹ 10 each at a premium of ₹ 35 per share. The amount was payable as follows: Applications for 65,000 shares were received and allotment was made to all the applicants. A share holder, Ram, who was allotted 2000 shares, failed to pay the allotment money. His shares were forfeited immediately after all ot ment. After wards, the first and final call was made. Sohan, who had 3000 shares, failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares, 4000 shares were re-issued at ₹ 50 pershare fully paid up. The re-issued share sincluded all the shares of Ram.
Pass necessary Journal entries for the above transactionsin the books of R.K. Ltd.

BBG Ltd. invited applications for issuing 2,00,000 equity shares of ₹ 10 each at a premium of ₹ 10 per share. The amount was payable as follows: The issue was fully subscribed. Raghu, a shareholder holding 1000 shares, failed to pay the allotment money and Rahim, another shareholder holding 1500 shares, paid his entire share money along with allotment. Raghu’s shares were forfeited immediately after allotment. Afterwards, the first call was made. Deenanath, a shareholder holding 500 shares, failed to pay the first call money and Dayal, a shareholder holding 600 shares, paid his second call money along with the first call. Deenanath’s shares were forfeited immediately after the first call. Later on the second call was made which was duly received.
Pass necessary journal entries for the above transactions in the books of BBG Ltd.

Joy Ltd. invited applications for issuing 20,000 equity shares of ₹ 10 each at par. The amount was payable as follows: The issue was oversubscribed by three times. Applications for 20% shares were rejected and the money was refunded. Allotment was made to the remaining applicants as follows:

Category	No. of Shares Applied	No. of Shares Allotted
I	30,000	15,000
II	18,000	5,000

Excess money received with applications was adjusted towards sums due on allotment. Money in excess to sums due on allotment was adjusted towards sums due on first and final call and any money in excess to sums due on first and final call was refunded. Kavi, a shareholder who had applied for 600 shares, failed to pay the remaining allotment money and his shares were immediately forfeited. Kavi belonged to Category I.
Afterwards the first and final call was made. Gupta, who had applied for 400 shares, failed to pay the first and final call. Gupta also belonged to Category I.
Shares of Gupta were also forfeited after the first and final call. The forfeited shares were reissued at ₹ 12 per share fully paid up.
Pass necessary journal entries for the above transactions in the books of Joy Ltd.

JS Ltd. invited applications for issuing 80,000 equity shares of ₹ 10 each at a premium of ₹ 6 per share. The amount was payable as follows: Applications for 1,60,000 shares were received. Applications for 40,000 shares were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Raman holding 400 shares failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards the final call was made. Veer who had applied for 1200 shares failed to pay the final call. His shares were also forfeited. Out of the forfeited shares 500 shares were re-issued at ₹ 8 per share fully paid-up. The re-issued shares included all the forfeited shares of Raman.
Pass necessary journal entries for the above transactions in the books of J.S. Ltd.

RS Ltd. has issued 25,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share payable with application money. The incomplete journal entries related to the issue are given below. You are required to complete these blanks.

KS Ltd. invited applications for issuing 1,60,000 equity shares of ₹ 10 each at a premium of ₹ 6 per share. The amount was payable as follows:
On Application4 per share (including premium ₹ 1 per share)
On Allotment6 per share (including premium ₹ 3 per share)
One First and Final Call – Balance.
Applications for ₹ 3,20,000 shares were received. Applications for ₹ 80,000 share were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Jain holding 800 shares failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwardsthe final call was made. Gupta who had applied for 1200 shares failed to pay the final call. This shares were also forfeited. Out of the forfeited shares 1000 shares were re-issued at ₹ 8 per share fully paid up. The re-issued shares included all the forfeited shares of Jain.
Pass necessary journal entries for the above transactions in the books of KS Ltd.

‘Wellness Ltd.’ invited applications for issuing 40,000 equity shares of ₹ 10 each at a discount of 10%. The amount was payable as follows: Applications for 39,000 shares were received and allotment was made to all the applicants.
The payment was received as per the following details: The Directors forfeited those shares on which less than ₹ 7 per share were received.
The forfeited shares were re-issued at ₹ 8 per share as fully paid up.
Pass necessary Journal Entries in the books of the company for the above transactions.

‘Subham Ltd.’ invited applications for issuing 12,000 equity shares of ₹ 10 each at a premium of ₹ 3 per share. The amount was payable as follows: Applications for 18,000 shares were received and pro-rata allotment was made to all the applicants.
Excess money received with applications was adjusted towards sums due on first call. All calls were made and were duly received except the first call and second and final call on 120 shares allotted to Vibhu. His shares were forfeited. The forfeited shares were reissued at the maximum permissible discount as per the provisions of the Companies Act, 1956.
Pass necessary Journal Entries for the above transactions in the books of the company.

AXN Ltd. invited applications for issuing 1,00,000 equity shares of ₹ 10 each at a premium of ₹ 6 per share. The amount was payable as follows:
On Application ₹ 4 per share (including ₹ 2 premium).
On Allotment ₹ 5 per share (including ₹ 2 premium).
On First Call ₹ 4 per share (including ₹ 2 premium).
On Second and Final Call – Balance Amount.
The issue was fully subscribed.
Kumar the holder of 400 shares did not pay the allotment money and Ravi the holder of 1,000 shares paid his entire share money alongwith allotment money. Kumar’s shares were forfeited immediately after allotment. Afterwards first call was made. Gupta a holder of 300 shares failed to pay the first call money and Gopal a holder of 600 shares paid the second call money also alongwith first call. Gupta’s shares were forfeited immediately after the first call. Second and final call was made afterwards. The whole amount due on second call was received. All the forfeited shares were re-issued at ₹ 9 per share fully paid up.
Pass necessary Journal Entries for the above transactions in the books of the company.

KS Ltd. invited applications for issuing 1,60,000 equity shares of ₹ 10 each at a premium of ₹ 6 per share. The amount was payable as follows:
On Application4 per share (including premium1 per share)
On Allotment6 per share (including premium3 per share)
One First and Final Call – Balance.
Applications for 3,20,000 shares were received. Applications for 80,000 share were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Jain holding 800 shares failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwardsthe final call was made. Gupta who had applied for 1200 shares failed to pay the final call. This shares were also forfeited. Out of the forfeited shares 1000 shares were re-issued at ₹ 8 per share fully paid up. The re-issued shares included all the forfeited shares of Jain.
Pass necessary journal entries for the above transactions in the books of KS Ltd.

‘Amrit Dhara Ltd.’ invited applications for issuing 80,000 equity shares of ₹ 10 each. The amount was payable as follows:

‘Sulabh Ltd.’ invited applications for issuing 1,50,000 equity shares of ₹ 10 each at a premium of ₹ 3 per share. The amount was payable as follows:
On application – ₹ 2 per share.
On allotment – ₹ 6 per share. (including premium)
On first and final call – the balance.
Applications for 2,00,000 shares were received and shares were allotted on pro-rata basis to all the applicants. Excess money received with applications was adjusted towards sums due on allotment. Suman who had applied for 2,000 shares failed to pay the allotment and call money. Raman failed to pay first and final call on his 500 shares. Shares of both Suman and Raman were forfeited after the final call was made. The forfeited shares were re-issued for ₹ 12 per share as fully paid up.
Pass necessary Journal Entries for the above transactions in the books of the company.

XYZ Ltd. invited applications for 40,000 equity shares of ₹ 100 each at a discount of 6%. The amount was payable as follows: Application for 60,000 shares were received. Applications for 10,000 shares were rejected and shares were allotted on pro-rata basis to remaining applicants. Excess application money received on application and allotment was adjusted towards sums due on first and final call. The calls were made. A shareholder, who applied for 50 shares, failed to pay the first and final call money. His shares were forfeited. All the forfeited shares were re-issued at ₹ 97 per share fully paid up.
Pass necessary journal entries for the above transactions in the books of XYZ Ltd.
OR
AB Ltd. invited applications for issuing 75,000 equity shares of ₹ 100 each at a premium of ₹ 30 per share. The amount was payable as follows: Applications for 1,27,500 shares were received. Applications for 27,500 shares were rejected and shares were allotted on pro-rata basis to the remaining applicants. Excess money received on application and allotment was adjusted towards sums due on first and final call. The calls were made. A shareholder, who applied for 1,000 shares, failed to pay the first and final call money. His shares were forfeited. All the forfeited shares were reissued at ₹ 150 per share fully paid up.
Pass necessary journal entries for the above transactions in the books of AB Ltd.

XL Ltd. invited applications for issuing 1,00,000 equity shares of ₹ 10 each at par. The amount was payable as follows:
On Application ₹ 3 per share.
On Allotment ₹ 4 per share.
On First and Final Call ₹ 3 per share.
The issue was over-subscribed by three times. Applications for 20% shares were rejected and the money refunded. Allotment was made to the remaining applicants as follows

Category	No. of Shares Applied	No. of Shares Allotted
I	1,60,000	80,000
II	80,000	20,000

Excess money received with applications was adjusted towards sums due on allotment and first and final call. All calls were made and were duly received except the final call by a shareholder belonging to Category I who has applied for 320 shares. His shares were forfeited. The forfeited shares were re-issued at ₹ 15 per share fully paid up.
Pass necessary Journal entries for the above transactions in the book of XL Ltd. open calls in-arrears and calls in advance account whenever required.

KS Ltd. invited applications for issuing 1,60,000 equity shares of ₹ 10 each at a premium of ₹ 6 per share. The amount was payable as follows:
On Application4 per share (including premium1 per share)
On Allotment6 per share (including premium3 per share)
One First and Final Call – Balance.
Applications for 3,20,000 shares were received. Applications for 80,000 share were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Jain holding 800 shares failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwardsthe final call was made. Gupta who had applied for 1200 shares failed to pay the final call. This shares were also forfeited. Out of the forfeited shares 1000 shares were re-issued at8 per share fully paid up. The re-issued shares included all the forfeited shares of Jain.
Pass necessary journal entries for the above transactions in the books of KS Ltd.

GG Ltd. had issued 50,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share payable with application money. The incomplete journal entries related to the issue are given below. You are required to complete these blanks.

Jeevan Dhara Ltd. invited applications for issuing 1,20,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows:
On application – ₹ 2 per share.
On allotment – ₹ 5 per share (including premium)
On first and final call – balance.
Applications for 1,50,000 shares were received. Shares were allotted to all the applicants on pro-rata basis. Excess money received on applications was adjusted towards sums due on allotment. All calls were made. Manu who had applied for 3,000 shares failed to pay the amount due on allotment and first and final call. Madhur who was allotted 2,400 shares failed to pay the first and final call. Shares of both Manu and Madhur were forfeited. The forfeited shares were re-issued at ₹ 9 per share as fully paid up.
Pass necessary journal entries for the above transactions in the books of Jeevan Dhara Ltd.

Alfa Ltd. invited applications for issuing 75,000 equity shares of ₹ 10 each. The amount was payable as follows:
On application and allotment – ₹ 4 per share.
On first call – ₹ 3 per share
On second and final call – balance.
Applications for 1,00,000 shares were received. Shares were allotted to all the applicants on pro-rata basis and excess money received with applications was transferred towards sums due on first call. Vibha who was allotted 750 shares failed to pay the first call. Her shares were immediately forfeited. Afterwards the second call was made. The amount due on second call was also received except on 1000 shares, applied by Monika. Her shares were also forfeited. All the forfeited shares were reissued to Mohit for ₹ 9,000 as fully paid up.
Pass necessary journal entries in the books of Alfa Ltd. for the above transactions.

XYZ Ltd. invited applications for 40,000 equity shares of ₹ 100 each at a discount of 6%. The amount was payable as follows:
On Application and Allotment - ₹ 90 per share
On First and Final call - the balance amount.
Application for 60,000 shares were received. Applications for 10,000 shares were rejected and shares were allotted on pro-rata basis to remaining applicants. Excess application money received on application and allotment was adjusted towards sums due on first and final call. The calls were made. A shareholder, who applied for 50 shares, failed to pay the first and final call money. His shares were forfeited. All the forfeited shares were re-issued at ₹ 97 per share fully paid up.
Pass necessary journal entries for the above transactions in the books of XYZ Ltd.

The company received applications for 1,50,000 shares. The allotment was done as under:

1. Applicants of 15,000 shares were allotted 5,000 shares.
2. Applicants of 70,000 shares were allotted 40,000 shares.
3. Remaining applicants were allotted 30,000 shares.

Money in excess to allotment was returned. Hari, a shareholder who had applied for 3,500 shares out of group B failed to pay allotment and call money. Rohan, a shareholder who was allotted 3,000 shares paid the call money along with the allotment. Rohan also belonged to group B.
Pass journal entries to record the above transactions in the books of the company. Show your working notes clearly.

Record the journal entries for forfeiture and reissue of shares in the following cases:

1. X Ltd. forfeited 20 shares of ₹ 10 each, ₹ 7 called up on which the shareholder had paid application and allotment money of ₹ 5 per share. Out of these, 15 shares were re-issued to Naresh as ₹ 7 per share paid up for ₹ 8 per share.
2. Y Ltd. forfeited 90 shares off ₹ 10 each, ₹ 8 called up issued at a premium of ₹ 2 per share to 'R' for non-payment of allotment money of ₹ 5 per share (including premium). Out of these, 80 shares were re-issued to Sanjay as ₹ 8 called up for ₹ 10 per share.
3. Z Ltd. forfeited 300 shares of ₹ 10 each issued at a discount of ₹ 1 per share for non-payment of first and final call of ₹ 3 per share. Out of these 200 shares were reissued at ₹ 3 per share fully paid up.

Jain Ltd. invited applications for issuing 35,000 Equity Shares of ₹ 10 each at a discount of 10%. The amount was payable as follows: Applications for 50,000 shares were received. Applications for 8,000 shares were.
rejected and the application money of these applicants was refunded. Shares were allotted on pro-rata basis to the remaining applicants and the excess money received with applications from these applicants was adjusted towards sums due on allotment. Jeevan who had applied for 600 shares failed to pay allotment and first and final call money. Naveen the holder of 400 shares failed to pay first and final call money. Shares of Jeevan and Naveen were forfeited. Of the forfeited 800 shares were reissued at ₹ 15 per share fully paid up. The re-issued shares included all the shares of Naveen.
Pass necessary Journal Entries for the above transactions in the books of Jain Ltd.

Shyam Ltd invited applications for issuing 80,000 Equity Shares of ₹ 10 each at a premium of ₹ 40 per share. The amount was payable as follows: Applications for 77,000 shares were received. Shares were allotted to all the applicants. Sundram to whom 7,000 shares were allotted failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards the first and final call was made. Satyam the holder of 500 shares failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares 1,000 shares were re-issued at ₹ 50 per share fully paid up. The re-issued shares included all the shares of Satyam.
Pass necessary Journal Entries for the above transactions in the books of Shyam Ltd.

Give Journal entries to record the following transactions of forfeiture and re-issue of shares and open share forfeited account in the books of the respective companies.

1. C Ltd. forfeited 1000 shares of ₹ 100 each issued at a discount of 8% on these shares the first call of ₹ 30 per share was not received and the final call of ₹ 20 per share was yet to be called. These shares were subsequently re-issued at ₹ 70 per share ₹ 80 paid up.
2. L Ltd. forfeited 470 Equity Shares of ₹ 10 each issued at a premium of 5 per share for non-payment of allotment money of ₹ 8 per share (including share premium ₹ 5 per share) and the first and final call of ₹ 5 per share. Out of these 60 Equity Shares were subsequently re-issued at ₹ 14 per share.

X Ltd. issued 40,000 Equity Shares of ₹ 10 each at a premium of ₹ 2.50 per share. The amount was payable as follows:

On application	-	₹ 2 per share
On allotment	-	₹ 4.50 per share (including premium)
and on call	-	₹ 6 per share

Owing to heavy subscription the allotment was made on prorata basis as follows:

1. Applicants for 20,000 shares were allotted 10,000 shares.
2. Applicants for 56,000 shares were allotted 14,000 shares.
3. Applicants for 48,000 shares were allotted 16,000 shares.

It was decided that excess amount received on applications would be utilised on allotment and the surplus would be refunded.
Ram, to whom 1,000 shares were allotted, who belong to category (a), failed to pay allotment money. His shares were forfeited after the call.
Pass the necessary Journal entries in the books of X Ltd. for the above transactions.

X Ltd.-, issued 50,000 shares of ₹ 10 each at a premium of ₹ 2 per share payable as follows: Applications were received for 75,000 shares and a pro-rata allotment was made as follows:
To the applicants of 40,000 shares, 30,000 shares were issued and for the rest 20,000 shares were issued. All money due were received except the allotment and call money from Ram who had applied for 1,200 shares (out of the group of 40,000 shares). All his shares were forfeited. The forfeited shares were re-issued for ₹ 7 per share fully paid up. Pass necessary Journal Entries for the above transactions.