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,. JCV Ltd., forfe ited 200 shares oft 1O each issued at a prem
ium of z 2 per share for the non• paym ent of
allotf!1ent mone y of.!.l _per share (inclu ding prem ium). The first
and final call oft 4 per share has not been
made as yet. 50% of the forfe ited shares were reissu ed at t
8 per share as fully paid- up. Pass nece ssary
Journal entries for the forfe iture and reissue of shares. 7
(Delh i 201 C)

~ Pass necessary Journal entrie s in the books of the comp

any for the follow ing trans actio n s:
Vishesh Ltd. forfe ited 1,000 Equit y Share s of t 1O each issued at
a prem ium of~ 2 per share for non- paym ent
of allotm ent mone y oft 5 per share inclu ding prem ium . The fin
al call of ~ 2 per share was not yet called on
these shares. Of the forfeited shares 800 shares were reissu ed at~
12 per share as fully paid- up. The rema ining
shares were reissued at i ~ 1 per share fully paid- up.
(Delh i 20 13 C)

J Gaurav applied for 5,000 shares oft 10 each at a premium of 2.50

per share. But he was allott ed 2,500 shares on
pro rata basis. After having paid t 3 per share on application,
he did not pay allotm ent mone y oft 4.50 per share
(including premium) and on his subsequent failure to pay the first
call oft 2 per share, his shares were forfeited.
These shares were reissu ed at the rate oft 8 per share credited as
fully paid.
Pass Journal entries to record the forfe iture and reissue of share
s.

la . Amal had applied for 7,000 shares oft 1O each at a premium oft 5 per share. He was allotted 4,000 shares
on pro rata basis. After havin g paid ~ 3 per share on appli catio
n, he did not pay allot men t mone y of
~ 7 per share (inclu ding prem ium) and on his subs
equent failure to pay the first call oft 3 per share, his
shares were forfe ited. Calls not received were transferred to Calls-
in-Arrears Acco unt. These shares were
reissued at the rate oft 8 per share credited as fully paid.
Pass Journal entries to record the forfei ture and reissue of share
s.
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On l April, 2012, Vishwas Ltd. was formed with an . authorisea cap1taJ off I0,00,000
divided into 1,00,000 .
equity shares off 10 each. The company issued .
prospectus inviting
applications for 90,000 equity shares. The company received applications for 85,000 equity
shares. During the first year, f 8 per share were called. Ram holding 1,0SX) shares and
Shyam holding 2,000 shares did not pay the first call off 2 per share. Shyam's shares were
forfeited after the first cal.I and later on 1,500 of the forfeited shares were re-1ssued at f 6
per share, f 8 called up.
Show the following:
-
(a) Share Capital in the Balance Sheet of the company as per Schedule III Part I of
. . .

the Companies Act, 2013.

(b) Also prepare 'Notes to Accoµnts' for the same.
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;i!e :- - - - - - - t .
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7
pawan Hans Ltd. forfeited 40 sh MCQ.Bl
1
' 48 shares. After having p ·d ,,, ~res of ' 1Oeach Issued t . · .
. ai ' 6 (including , a
2. Premium) h d'd
a premium of 40% of Raj who had applied for
$ 1 premium) and on his b· · .
\ su sequentfa'I ' e I not pay allotment money o" 2 (including
were forfeited. The amount to be credit:~:: t; pa~ th e first call of, 3 (including , 1 pr~mlum) his shares
@ t 288. orfeited Shares Account Is

@t 192. @ ' 200.

@ '160.
.2 Ashoka Tree Ltd. had issued 1oooo E .
,, , quIty Shares of' 10 h
issue price of the share. Few sharehold h eac at a premium of , 2. It had called the total
forfeited. On forfeiture, Share Capital Aers ad not paid the First and Final Call of, 3 and their shares were
ccount will be debited by
@ t 10 per share. ·
© t 7 per share. @ ' 12 per share.

:3, Banyan Tree Lt~. had forfeited 10,000 E, u·

@ '3 per share. ·
share for non-payment of Allotm~nt M; ity Shares of' 1Oeach that were is~ued at a premium of, Sper
share. On forfeiture, it will deb.it Shar ne~ of' 5 per share plus premium. Application Money was' 5 per
. e Capital Account and Securities Premium Reserve by .
@ t 50,000 and { SO'000 respecrive1y. .
@ , 1,00,000 and f. 25,000 respectively.
©' 1,00,000 and { 50,000 respectively. @ f 1,00,000 and Nil respectively.

4, . Which of the following stat~ment does not relate to 'Reserve ·capital'?

@ It is part of uncalled cap.ital 0{ a company.
@ It cannot be ~sed ·during th,e lifetime of a company.
.© It can be used for writing off capital losses.
@ It is part of sub~cribed .capital. (CBSE 2020)

5. Reserve Capital is not a part of ,

@ Authorised Capital. .- @ Subscribed Capital.
© Unsubscribed Capital. · @) Issued Capital. · (Sample Paper, 2020)
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6; The Directors of Neelkamal Ltd. forfeited 70,000 equity shares off 1Oeach, f 1Ocalled-up, for non-payment
of final call of , 1 per share. Half of the forfeited shares were reissued at f 20 per share Fully Paid-up. On
reissue of forfeited shar~s, the following amoun~ will be transfe_rred to the Capital Reserve Account
@ t 70,000. @ f 1,40,000. .

.@ f 42,000. . - @) f 3,15,000. (CBSE 2020)

7. Maple Tree Ltd. had forfeited 1,000 Equity Shares off _10 each ~or non:payment of First and Final Cail of, 4
per share. It reissued 400 of these shares and transferred f 2,000 to Capital Reserve. Forfeited shares weie
reissued for
@ f 800. @· f 3,200.
@) f
2,400.
@ '3,600. . . (

8. Sal Tree Ltd. had forfeited 5,000 Equity Shares off 1oeach that were issued at a premium off 5 per share
for non-payment of First and Final Call off 4 per share. The ~orfeited shar~s were reissued for f 8 per share
as fully paid-up. The amount that will be transferred ~o Capital Reserve will be
@ f 20,000. '
@ f 10,000.
@) Nil.
, @ f 30,000.