Page 53 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Accounting for Companies-I

Notes To unpaid calls A/c
(Amount called but not paid)

Notes (i) Amount called up = No. of shares called up per share
(ii) Amount paid = No. of shares Amount paid per share

(iii) Amount called but not paid = No. of shares Amount called but not paid per share

Illustration 1:
X, a shareholder, holding 100 shares of 10 each has paid application money of 2 per share and
allotment money of 3 per share, but has failed to pay the first call of 2 per share and second
call of 3 per share. His shares were forfeited. Make the journal entry to record the forfeiture of
shares.

Solution:
Journal Entry

Date Particulars L.F Amount Amount

Share Capital A/c (100 10) Dr 1000
To Share forfeited A/c (100 5) 500
To Share First Call A/c (100 2) 200
To Share Second and Final Call A/c 300
(100 3) (forfeiture of 100 shares)
Illustration 2:

Alpha Ltd. issued 10000 shares of 100 each payable as: 25 on application.
25 on allotment
20 on First call and

30 on second and final call.
9000 shares were applied for and allotted. All the payments were received with the exception of
allotment money, first call and second and final call money on 300 shares allotted to Ganesh. The
Board of Directors decided to forfeit these shares. Make journal entry to record transaction
relating to forfeiture of shares.

Solution:
Journal Entry
Particulars Amount Amount
Share Capital A/c (300 100) Dr 30000
To Share forfeited A/c (300 25) 7500
To Share allotment A/c (300 25) 7500
To Share first call A/c (300 20) 6000
To Share second call A/c (300 30) 9000
(300 shares of 100 each forfeited due to non payment
of allotment money and calls money)

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