Worksheet-Issue and Forfeiture of Shares

Revision assignment
Issue of shares
1. On 1st May , 2015 the directors of Jobi Limited forfeited 200 shares of `20 each, `15 per
share called up, on which `10 per share has been paid by A, the amount of the first call of
`5 per share being unpaid. Ten days later, the directors re-issued the forfeited shares to B
credited as `15 per share paid up, for a payment of `10 per share. Give Journal entries in
the company’s books to record the forfeiture of shares and their re-issue.
2. The Directors of Khadeeja Ltd forfeited 200 Equity shares of `10 each of which `8 has been
paid. The shares were re-issued upon payment of `1,500. Journalize the above.
3. Maaz Ltd forfeited 50 shares of `100 each issued at 10% premium (to be paid at the time of
allotment
) on which shares first call of `30 was not received , the final call of `20 per share is not
yet called, 20 of these shares were subsequently re-issued at `70 per share as `80 paid
up.
Give necessary Journal entries regarding forfeiture and re-issue of shares.
4. The directors of Mahima Ltd forfeited 100 shares of `10 each fully called up for non-
payment of First Call of `2 per share and Final Call of `3 per share. Sixty of these shares
were subsequently re-issued at `6 per share fully paid up. Pass necessary Journal entries
to record the above.
5. The directors of Safwan Ltd. resolved on 1 st May, 2015 that 2,000 Equity Shares of `10
each, `7.50 paid, be forfeited for non-payment of final call of `2.50. On June 10, 2015,
1,800 of these shares were re-issued for `6 per share. Give the necessary Journal entries.
6. Fahim Limited forfeited 100 shares of `10 each (`8 called up) issued at a premium of `2
per share to Mr. R , on which he had paid application money of `5 per share, for non-
payment of allotment money of `5 per share (including premium) . Out of these 70 shares
were re-issued to Mr. Sanjay as
` 8 called for `7 per share.
Give necessary Journal entries relating to forfeiture and reissue of shares.
7. (a) Nidhin Ltd. forfeited 30 shares of `10 each issued at a premium of 50% fully called up,
held by Kajal for non-payment of allotment of `5 per share(Including premium `2) and final
call of `4 per share (Including premium Re.1). These shares were re-issued to Divya for `8
per share.
(b) Nisamol Ltd. forfeited 20 shares of `10 each, `7 called up on which Maher had paid
application and allotment money of `5 per share. Of these, 15 shares were re-issued to
Nahar as fully paid up for `6 per share.
(c) Pragati Ltd. forfeited 10 shares of `10 each, `7 called including premium issued at a
Premium of 10% to Chintan on which he had paid application money `2 per share. Out of
these, 8 shares were re-issued to Meeta as `8 called up for`7 per share. Give Journal
entries for the forfeiture and reissue in each case.
8. Abraham Ltd. invited applications for 20,000 Equity shares of `10 each
for public Subscription .The amount of these shares was payable as
under:
On Application Re.1 per share, On Allotment `2 per share, On First call `3 per share, On
Second and Final call `4 per share.
All sums payable on application, allotment and calls were duly received with the following
exceptions:
(i) A, who held 400 shares, failed to pay the money on allotment and calls.
(ii) B, to whom 300 shares were allotted, failed to pay the money on first call and final
call.
(iii) C, who held 100 shares, did not pay the amount of final call.
The shares of A, B and C were forfeited and were subsequently re-issued for cash as fully
paid at a discount of 5%. Give the necessary Journal entries to record these share capital
transactions in the books of X Ltd.
.
9. Tasneem Ltd invited applications for 50,000 equity shares of `10 each on the
following terms:
`
On application 3
On allotment 2
On first and final call 5
Applications were received for 1,10,000 shares. It was decided (i) to refuse allotment to
the applicants for 10,000 shares; (ii) to allot 50% to Mr. X who has applied for 20,000
shares; (iii) to allot in full to Mr. Y who has applied for 10,000 shares; (iv) to allot balance
of the available shares pro-rata among the other applicants; and (v) to utilize excess
application money in part payment of allotment and final call.
Give journal entries till the stage of allotment assuming that the entire sum due on
allotment received in full.

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Revision assignment

Give necessary Journal entries relating to forfeiture and reissue of shares.

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