Illusion I: G. Ltd. With an authorized capital of Rs. 3,00,000
in equity shares of Rs. 10 each had issued 20,000 shares on which Rs. 7.50 per
share have so far been called up. Of the total shares subscribed, all the share
holders paid the calls made on them with the exceptions of the following whose installments
as stated hereunder were in arrears and whose shares were therefore forfeited.
Mr. A holding 300 shares :
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(allotment Rs. 2 per share, first call Rs. 2 per
share and second call Rs. 2.50 per share
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Mr. B holding 300 shares :
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(First Call and Second Call)
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Mr. C holding 400 shares :
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(Second Call)
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Pass the entries recording the forfeiture and show
how the share capital will appear in the Balance Sheet.
Ans:
Journal
Entries as on:
Dt.
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Particulars
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Amt.
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Amt.
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Equity
Share Capital A/c ……………………….Dr. (1000x7.50)
To, Equity
Share Allotment A/c (300x2)
To, Equity
Share First Call A/c {(300+300)x2}
To, Equity
Share Second Call A/c {(300+300+400)x2.5}
To, Share
Forfeiture A/c (Balance Amount)
(Being share
forfeited on 1000 shares)
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7500
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600
1200
2500
3200
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Balance Sheet of G. Ltd. As at… (Extract)
Liabilities
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Amt
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Amt
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Assets
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Amt
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Amt
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Share Capital
Authorized Capital
30000 equity shares @Rs. 10 each
Issued & Subscribed Capital
Partly paid up (less Forfeited shares)
19000 equity shares @Rs. 10 each Rs. 7.5 called up
Less : Call in Arrears
Add : Share Forfeiture
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142500
---
3200
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300000
300000
145700
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Current Assets, Loans & Advances
Cash & Bank
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