Bissoy.com
Doctors Medicines MCQs Q&A

X Ltd. forfeited 20 shares of Rs.10 each, Rs. 8 called up, on which John had paid application and allotment money of Rs. 5 per share, of these, 15 shares were reissued to Parker as fully paid up for Rs. 6 per share. What is the balance in the share Forfeiture Account after the relevant amount has been transferred to Capital Reserve Account?

X Ltd. forfeited 20 shares of Rs.10 each, Rs. 8 called up, on which John had paid application and allotment money of Rs. 5 per share, of these, 15 shares were reissued to Parker as fully paid up for Rs. 6 per share. What is the balance in the share Forfeiture Account after the relevant amount has been transferred to Capital Reserve Account? Correct Answer Rs 25

Solution:

Date Particulars Dr. (Rs) Cr. (Rs)
a)

Share Capital a/c (20  shares x 8)     Dr

          To Share Forfeited a/c (20 shares x 5)

          To Calls in arrears a/c (20 shares x 3)

(Being 20 shares of 10 each, Rs 8 called up forfeited for the non-payment of call)

160

 

 

 

 

 

100

60

 

 
b)

Bank a/c (15 shares x 6)                                  Dr

Share Forfeiture a/c (15 shares x 4)                Dr.

            To Share Capital a/c (15 shares x 10)

(Being 15 shares were reissued as Rs 10 paid up for Rs. 6 per share)

90

60

 

 

 

150

 
c)

Share Forfeiture a/c                         Dr

             To Capital reserve 

(Being transfer of Profit on Reissue of 15 shares)

15

 

 

 

15

 

 

Working note:- 

Profit on 20 Shares (20 x 5) Rs. 100
Profit on 20 Shares (15 x 5) Rs. 75
Less:- Loss on Reissue (15 x 4) Rs. 60
Amount to be transferred to Capital Reserve Rs. 15

 

Amount Left in Share Forfeiture = No. of shares not reissued x Amount paid by John Per share

Amount Left in Share Forfeiture = 5 x 5 = Rs. 25

Related Questions

X Ltd. forfeited 20 shares of Rs. 10 each (Rs. 8 called up) on which John had paid application and allotment money of Rs. 5 per share. Of these, 15 shares were reissued to Parker as fully paid up for Rs. 6 per share. What is the balance in the share forfeiture account after the relevant amount is transferred to the capital reserve account?
A, B, Co. Ltd. forfeited 20 shares of Rs. 10 each, Rs. 7 called up on which C had paid application and allotment money of Rs. 5 per share. Of these, 15 shares were reissued to D @Rs. 6 per share as fully paid-up for Capital Reserve account would be:
M. Ltd. forfeited 50 shares of Rs. 100 each issued to X (Rs. 80 called up) on which the allotment money of Rs. 30 and the first call money of Rs. 20 have not been received. The company reissued these shares @ Rs. 90 per share as fully paid up. The amount to be transferred to Capital Reserve Account would be:
X co. Ltd. forfeited 1,000 shares of Rs. 10 each fully called up for non-payment of final call of Rs. 1 per share. 400 of forfeited shares are reissued as fully paid at Rs. 8 per share. The balance of forfeited share account will be:
X Ltd. forfeited 30 shares of Rs. 10 each fully called up for non payment of allotment money of Rs. 3 per share and call money of Rs. 4 per share. These share were re-issued for Rs. 8 per share fully paid. What is the amount to be transferred to Capital Reserve A/c:
X Ltd. forfeited 20 shares of Rs. 10 each on which Rs. 6 per share were paid. Out of these shares, 8 shares were reissued as fully paid up on payment of Rs. 5.50 per share. The amount to be transferred to capital reserve account will be:
A Ltd. forfeited 500 shares of M of Rs. 10 each fully called-up for non-payment of first call of Rs. 2 per share and final call of Rs. 2 per share. 300 of these shares were reissued at 9 per share, fully paid-up. What amount will be transferred to the Capital Reserve A/c?
ABC Ltd., forfeited 20 shares of Rs. 10 each on which Rs. 6 per share were paid. If out of these shares 8 shares were reissued to Hari as fully paid up on payment of Rs. 5.50 per share, the amount that will stand to the credit of Share Forfeited A/c will be
A company issued 1,00,000 equity shares of the face value of Rs. 100 each at Rs. 100 per share. So far Rs. 75 per share has been called up including Rs. 25 on allotment and Rs. 25 on first call. X to whom 200 shares were issued failed to pay the first call. His shares were forfeited and re-issued to Y at Rs. 70 per share as fully paid-up. The amount to be transferred to Capital Reserve a/c would be:
AB Co. Ltd. forfeited Rs. 800 on 100 shares of Rs. 10 each fully paid. Out of the forfeited shares, 50 shares were issued for Rs. 5 each as fully paid. The amount to be transferred to capital reserve will be: