SHARE CAPITAL C.W.

SET (CONTINUED)
91. Megha Ltd. Invited applications for issuing 90,000 equity shares of ₹100 each at a
premium of ₹60 per share. The amount was payable as follows:
On Application: ₹30 per share (including ₹10 premium)
On Allotment: ₹70 per share (including ₹50 premium)
On first and final call: balance amount
Applications for 1,00,000 shares were received. Shares were allotted on pro-rata basis to all
the applicants. Excess money received with application was adjusted towards sums due on
allotment. Sudha, a shareholder holding 4500 shares, failed to pay the allotment money.
Her shares were forfeited immediately after allotment. Afterwards the first and final call
was made. Rajat, a holder of 3600 shares, failed to pay the first and final call. His shares
were also forfeited. All the forfeited shares were re-issued for ₹90 per share fully paid up.
Pass necessary journal entries and prepare cash book for the above transactions in the
books of Megha Ltd. [CBSE 2019]
92. Sunstar Ltd. Invited applications for issuing 2,00,000 equity shares of ₹50 each. The
amount was payable as follows:
On Application: ₹15 per share
On Allotment: ₹10 per share
On first and final call: ₹25 per share
Applications for 3,00,000 shares were received. Allotment was made to the applicants as
follows:
Category No. of share applied No. of shares allotted
I 2,00,000 1,50,000
II 1,00,000 50,000

Excess money received with applications was adjusted towards sums due on allotment and
calls. Namita, a shareholder of category I, holding 3000 shares failed to pay the allotment
money. Her shares were immediately forfeited after the allotment. Manav, a shareholder
of category II, who had applied for 1000 shares failed to pay the first and final call. His shares
were also forfeited. All the forfeited shares were reissued for ₹60 per share fully paid up.
Pass necessary journal entries and prepare Cash book for the above transactions in the
books of Sunstar Ltd. [CBSE 2019]

EQUILIBRIUM CLASSES, BESIDE TIRUPATI BALAJI TEMPLE, RANI SATI MANDIR LANE, RATU ROAD,
RANCHI (JHARKHAND) CONTACT NO. 9840885790 pg. 1
93. X Ltd. Invited applications for issuing 50,000 equity shares of ₹10 each. The amount was
payable as follows:
On Application: ₹2 per share
On Allotment: ₹2 per share
On First call: ₹3 per share
On Second and final call: Balance amount

Applications for 70,000 shares were received. Applications for 10,000 shares were rejected
and the application money was refunded.
Shares were allotted to the remaining applicants on pro-rata basis and excess money
received with applications was transferred towards sums due on allotment and calls, if any.
Gopal, who applied for 600 shares, paid his entire share money with application. Ghosh,
who had applied for 6000 shares, failed to pay the allotment money and his shares were
immediately forfeited. These forfeited shares were re-issued to Sultan for ₹20,000; ₹4 per
share paid up. The first call money and second and final call money was called and duly
received.
Pass necessary journal entries for the above transactions in the books of X Ltd. Open Calls
in advance account and calls in arrears account whenever necessary. [CBSE 2018]
94. (a) R.P. Ltd. Forfeited 1500 shares of Rahim of ₹10 each issued at a premium of ₹3 per
share for non-payment of allotment and first call money. Rahim had applied for 3000
shares. On these shares amount was payable as follows:

On Application: ₹3 per share

On Allotment: ₹5 per share (including premium)
On First call: ₹3 per share
On Final call: Balance amount
Final call has not been called up. 1000 of the forfeited shares were reissued for ₹8500 as
fully paid up.

Record the necessary journal entries for the above transactions in the books of R.P. Ltd.
(b) Max. Ltd. Forfeited 500 shares of ₹100 each for non-payment of first call of ₹20 per share
and final call of ₹25 per share. 250 of these shares were re-issued at ₹50 per share fully paid
up.
Pass necessary journal entries in the books of Max. Ltd. For forfeiture and re-issue of shares.
Also prepare the share forfeiture account. [CBSE 2020]

EQUILIBRIUM CLASSES, BESIDE TIRUPATI BALAJI TEMPLE, RANI SATI MANDIR LANE, RATU ROAD,
RANCHI (JHARKHAND) CONTACT NO. 9840885790 pg. 2
95. Karur Ltd. Invited applications for issuing 2,40,000 equity shares of ₹10 each at a
premium of ₹4 per share. The amount was payable as follows:
On Application: ₹4 per share (including premium ₹2)
On Allotment: ₹4 per share
On First and Final Call: ₹6 per share (including premium)
Applications for 3,00,000 shares were received and pro-rata allotment was made to all the
applicants. Excess money received on application was adjusted towards sums due on
allotment. All calls were made and duly received except from Rohini, who failed to pay the
allotment and first and final call money on 7500 shares applied by her. These shares were
forfeited. Afterwards, 40% of the forfeited shares were re-issued at ₹11 per share as fully
paid up.

Pass necessary journal entries for the above transactions in the books of Karur Ltd. Open
Calls in advance account and calls in arrears account whenever necessary. [CBSE 2020]
96. Vani ltd. Invited applications for issuing 1,00,000 equity shares of ₹10 each at a premium
of 10%. The amounts were payable as under:
On application and allotment – ₹4 per share (including ₹1 premium)

On first call ₹4 per share; On second and final call ₹3 per share.
Applications for 1,50,000 shares were received and pro-rata allotment was made to all the
applicants.
Excess application money was adjusted towards sums due on calls. Parth, a shareholder
who had applied for 600 shares did not pay the first call. His shares were forfeited. The
second and final call was not yet made.
Half of the forfeited shares were reissued at ₹8 per share fully paid up.
Journalise the above transactions in the books of Vani ltd. By opening calls in arrears
account and calls in advance account wherever necessary. [CBSE 2023]
97. Pass necessary journal entries for forfeiture and reissue of forfeited shares in the
following cases:
(a) Vipin ltd. Forfeited 10,000 shares of ₹10 each issued at a premium of ₹1 per share, for
non-payment of second and final call of ₹2 per shar. Out of these 60% of the shares were
reissued at ₹7 per share fully paid up.
(b) Deepak ltd. Forfeited 800 shares of ₹10 each. ₹8 per share called up for non-payment of
first call of ₹3 per share. All the forfeited shares were reissued for ₹12 per share fully paid
up. [CBSE 2023]

EQUILIBRIUM CLASSES, BESIDE TIRUPATI BALAJI TEMPLE, RANI SATI MANDIR LANE, RATU ROAD,
RANCHI (JHARKHAND) CONTACT NO. 9840885790 pg. 3
98. Unnati ltd. Was registered with an authorised share capital of ₹8,00,000 divided into
equity shares of ₹10 each. The company issued a prospectus inviting applications for 60,000
equity shares. The company received applications for 58,000 equity shares. All calls were
made and were duly received except second and final call of ₹3 per share on 3000 shares
held by Manit. These shares were forfeited.
(a) Present the share capital in the balance sheet of the company as per schedule 3 , part 1
of companies act, 2013.

(b) Also prepare Notes to accounts for the same. [CBSE 2023]

EQUILIBRIUM CLASSES, BESIDE TIRUPATI BALAJI TEMPLE, RANI SATI MANDIR LANE, RATU ROAD,
RANCHI (JHARKHAND) CONTACT NO. 9840885790 pg. 4