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Question -

Journalise the following transactions in the books Bhushan Oil Ltd.:

(a) 200 shares of ₹. 100 each issued at a premium of ₹. 10 were forfeited for the non-payment of allotment money of ₹. 60 per share. The first and final call of ₹. 20 per share on these shares were not made. The forfeited shares were reissued at ₹. 70 per share as fully paid-up.
(b) 150 shares of ₹. 10 each issued at a premium of ₹. 4 per share payable with allotment were forfeited for non-payment of allotment money of ₹. 8 per share including premium. The first and final calls of ₹. 4 per share were not made. The forfeited shares were reissued at ₹. 15 per share fully paid-up.
(c) 400 shares of ₹. 50 each issued at par were forfeited for non-payment of final call of ₹. 10 per share. These shares were reissued at ₹. 45 per share fully paid-up.



Answer -

Case(a)

Books of Bhushan Oil Ltd.

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

Share Capital A/c (200 × 80)

Dr.

16,000

Securities Premium A/c (200 × 10)

Dr.

2,000

To Share Allotment A/c (200 × 60)

12,000

To Share Forfeiture A/c (200 × 30)

6,000

(200 shares forfeited @ ₹100 each  issued at a premium of

₹10 for the nonpayment of allotment money  ₹60 per share)

Bank A/c (200 × 70)

Dr.

14,000

Share Forfeiture A/c (200 × 30)

Dr.

6,000

To Share Capital A/c (200 × 100)

20,000

(200 shares reissued @ ₹70 per share fully paid-up)

Case(b)

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

Share Capital A/c

Dr.

900

Securities Premium A/c

Dr.

600

To Share Allotment A/c

1,200

To  Share Forfeiture A/c

300

(150 shares @ ₹10 each forfeited for nonpayment of allotment

money ₹ 8 per share including premium ₹4)

Bank A/c

Dr.

2,250

To Share Capital A/c

1,500

To Securities Premium A/c

750

(150 shares @ ₹10 each reissued For  ₹15 per share fully

paid-up)

Share Forfeiture A/c

Dr.

300

To Capital Reserve A/c

300

(Balance of Share Forfeiture Account transferred to Capital

Reserve Account)

Case(c)

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

Share Capital A/c

Dr.

20,000

To Share Final Call A/c

4,000

To Share Forfeiture A/c

16,000

(400 shares @ ₹ 50 per share forfeited for nonpayment of Final

Call ₹ 10 per share)

Bank A/c

Dr.

18,000

Share forfeiture A/c

Dr.

2,000

To Share Capital A/c

20,000

(400 shares @ ₹50 each reissued for  ₹45 fully paid-up)

Share Forfeiture A/c

Dr.

14,000

To Capital Reserve A/c

14,000

(Balance in Share Forfeiture Account  transferred to Capital

Reserve Account)

 

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