Smt. Jankibai Rama Salvi College, Kalwa (W).

Issue of Shares
Under Guidance of Prof. Amen Memon

Shobhnath Barai T. Y. B. Com. (Roll No: TC-04)

REISSUE OF FORFEITED SHARES OCTOBER 2004

Problem : Kinjal Ltd. Invited application for 10,000 shares of Rs. 100 each at premium of 10% payable as follows: On application On allotment : On first and final call : : Rs. 25 Rs. 50 (including premium) Rs. 35

The application were received for 9900 shares and all of these were accepted by the directors. All money due were received except the first and final call on 20 shares which were forfeited and reissued at Rs. 90 each fully paid. Pass journal entries and prepare the working note.

JOURNAL OF KINJAL LTD.

Date
1

Particulars
Bank A/C Dr. To Equity Share application A/C. (Being application money received 9,900 on shares at Rs.25 each) Equity share application a/c To equity share capital a/c (being 9900 shares allotted at Rs. 25 each) Dr.

L.F.

Debit(Rs.)
2,47,500

Credit(Rs.)

2,47,500 2,47,500 2,47,500 4,95,000 3,96,000 99,000

Equity share allotment a/c Dr. To equity share capital a/c To securities premium a/c (being allotment money due on 9900 share @ Rs. 50 each including Rs. 10 each) Bank a/c Dr. To equity share allotment a/c (being allotment money received on 9900 shares @ Rs.50 each) Equity share 1st and final call a/c To equity share capital a/c (being final call due on 9,900 shares @ Rs. 35 each) Bank a/c To equity shares first and final call a/c (being final call received on 9880 shares @ Rs. 35 each) Equity share capital a/c To equity share first and final call a/c To forfeited share a/c (being 20 shares forfeited for non payment of final call) Dr.

4,95,000

4,95,000
3,46,500 3,46,500

Dr.

3,45,800 3,45,800

Dr.

2,000 700 1,300

Continued..
Date 8 Particulars Bank A/C forfeited shares a/c To equity share capital a/c (Being20 shares reissued at Rs. 90 each fully paid up.) Dr. L.F. Debit(Rs.) 1,800 200 2,000 1,100 1,100 Credit(Rs.)

Forfeited share a/c Dr. To capital reserve a/c (being capital profit on forfeiture and reissue of 20 shares transferred to capital reserve account).

STATEMENT SHOWING DETAILS OF PAYMENT

No. of Shares Applied No. of Shares Allotted Application Money Received Transfer to Share Capital Refund

1 9,900

2 9,900

3 9,900 * 25 = 2,47,500

4 9,900 * 25 = 2,47,500

5 -

No. of Shares Applied

No. of Shares Allotted

Application Money Received

Transfer to Share Capital

Refund

6 -

7 9,900 * 50 = 4,95,000

8 9,900 * 50 = 4,95,000

9 9,900 * 35 = 3,46,500

10 9,880 * 35 = 3,45,800

THANK YOU