Forfeiture Reissue Transfer of Shares Exam Based Problems

  

Exam based problems of shares are the BEST collection of problems for sure shot success in the examination. These questions are based on board exam.

 

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EXAM  BASED  PROBLEMS  AND  ANSWERS

 

FORFEITURE, REISSUE AND TRANSFER

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = 

PROBLEM: 20

Max Company Ltd forfeited 100 shares of $/₹/Rs 100 each for non-payment of allotment Rs 20 and final call of Rs 30. The company reissued forfeited shares to Mr Z as fully paid for Rs 80 per share.

Required: Entry for forfeiture, reissue and transfer entry

[Answer: Share forfeiture = Rs 5,000; Capital reserve = Rs 3,000;

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = 

PROBLEM: 21

BC Company Ltd forfeited 500 shares of $/₹/Rs 100 each issued at 10% discount for non-payment of allotment Rs 30 and first and final call Rs 20 per share. All forfeited shares were reissued at Rs 80 per share without discount.

Required: Journal entries for forfeiture, reissue and transfer

[Answer: Share forfeiture = Rs 20,000; Capital reserve = Rs 10,000]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = 

PROBLEM: 22

BS Company Ltd forfeited 400 shares of $/₹/Rs 100 each issued at 10% discount for non-payment of allotment Rs 30 and first and final call Rs 20 per share. All forfeited shares were reissued at Rs 70 per share with discount.

Required: Journal entries for forfeiture, reissue and transfer

[Answer: Share forfeiture = Rs 20,000; Capital reserve = Rs 12,000]

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Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = 

PROBLEM: 23

SC Company Ltd forfeited 800 shares of Rs$/₹/Rs 50 each issued at Rs 60 for non-payment of allotment Rs 20 (with premium) and call money of Rs 15 per share. The Board’s decision, these shares were reissued subsequently by the company at Rs 40 per share without premium.

Required: journal entries for shares forfeiture, reissue and transfer

[Answer: Share forfeiture = Rs 20,000; Capital reserve = Rs 12,000]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = 

PROBLEM: 24

SBM Company Ltd forfeited 600 shares of $/₹/Rs 100 each issued at 10% premium for non-payment of allotment Rs 30 (with premium) and call money of Rs 20 per share. The company reissued forfeited shares at Rs 90 per share with premium.

Required: journal entries for shares forfeiture, reissue and transfer

[Answer: Share forfeiture = Rs 36,000; Capital reserve = Rs 24,000]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = 

PROBLEM: 25

BL Company Ltd forfeited 1,000 shares of $/₹/Rs 100 each issued at par due to non-payment of final call money of Rs 25 per share. Of the forfeited shares, 400 shares were reissued at Rs 60 per share as fully paid.

Required: Journal entries for forfeiture, reissue and transfer

[Answer: forfeiture Rs 75,000; Capital reserve = Rs 14,000]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = 

PROBLEM: 26

AH Company Ltd forfeited 350 shares of $/₹/Rs 100 each issued at 5% discount for non-payment of first and final call money of Rs 25 per share. Out of these forfeited shares, 200 shares were re-issued at Rs 65 per share as fully paid up without discount.

Required: Journal entries for share forfeiture, reissue and transfer

[Answer: Share forfeiture = Rs 24,500; Capital reserve = Rs 7,000)   

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = 

PROBLEM: 27

GK Company Ltd forfeited 300 shares of $/₹/Rs 50 each issued at Rs 45 per share for the non-payment of final call money of Rs 15 per share. Out of these forfeited shares, 200 shares were re-issued at Rs 40 per share as fully paid with discount.

Required: Journal entries for share forfeiture, reissue and transfer

[Answer: Share forfeiture = Rs 9,000; Capital reserve = Rs 5,000]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = 

PROBLEM: 28

AD Company Ltd forfeitures 1,000 shares of $/₹/Rs 100 each issued at premium for Rs 20 to Mr. A on which he has paid Rs 40 on application. He failed to pay Rs 50 (including premium) on allotment and Rs 30 on first and final call. His shares were forfeited and 800 shares were reissued at Rs 90 per shares as fully paid including premium.

Required: Journal entries for forfeiture, reissue and transfer

[Answer: Share forfeiture = Rs 40,000; Capital reserve = Rs 8,000;

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = 

PROBLEM: 29

AK Company Ltd forfeited 800 shares of $/₹/Rs 100 each at 10% premium. Shareholder has paid Rs 20 on application and Rs 40 on allotment. He failed to pay Rs 50 on first and final call. His shares were forfeited and 650 shares were reissued at Rs 90 per shares as fully paid without premium.

Required: Journal entries for forfeiture, reissue and transfer

[Answer: Share forfeiture = Rs 40,000; Capital reserve = Rs 26,000;

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = 

PROBLEM: 30

CK Company Ltd forfeited 400 shares of $/₹/Rs 100 each, Rs 80 per share being called up, which were issued at a discount of Rs 10 per share for nonpayment of first call of Rs 30 per share. Of these forfeited shares, 300 shares were reissued subsequently by the company at Rs 50 per share with discount as Rs 80 paid up per share.

Required: Journal entries for forfeiture, reissue, transfer

[Answer: Arrears on first call = Rs 12,000; Capital reserve = Rs 6,000]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = 

PROBLEM: 31

ABC Food Product Limited, registered with nominal capital of $/₹/Rs 16,00,000 divided into Rs 100 per share, issued 8,000 shares to public at 10% premium payable as under:

On application     Rs 50 per share            On allotment        Rs 40 per share            On first and final call Rs 20 per share The amounts received on these shares were as follows:            On 7,200 shares   full amount            On 600 shares      Rs 90 per share            On 200 shares      Rs 50 per share

 

The board of directors decided to forfeit the share paying less than par value and reissue those shares in which Rs 90 were received at Rs 95 per share as fully paid including premium.

Required: entries for share forfeiture, reissue and transfer

[Answer: Share forfeiture (10,000 + 48,000) = Rs 58,000;

Capital reserve = Rs 39,000;

 

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