Page 67 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Accounting for Companies-I

Equity Share First Call Account Dr. 2,50,000
To Equity Share Capital Account 2,50,000
Notes (Being first call money due on 5,000 shares @ 50 per
share)
Bank Account Dr. 1,20,000
Calls-in-Advance Account (2500 × 50) Dr. 1,25,000
To Equity Share First Call Account 2,45,000
(Being receipt of first call money on 4900 shares.)

Equity Share Capital Account Dr. 7,500
To Equity Share First Call Account 5,000
To Forfeited Share Account 2,500
(Being forfeiture of 100 shares for non-payment of first
call)
Equity Share Second Call Account Dr. 73,500 73,500
To Equity Share Capital Account
(Being second call money due on 4,900 shares @ 15
per share)
Bank Account Dr. 35,250 72,750
Call-in-Advance Account (2500 × 15) Dr. 37,500
To Equity Share Second Call Account
(Being second call money received on 2,350 shares)
Bank Account (75 × 65) Dr. 4,875 6,750
Forfeited Shares Account (75 × 25) Dr. 1,875
To Equity Share Capital Account (75 × 90)
(Being reissue of 75 shares at 65 each 90 paid up at
a discount of 25 each)
Bank Account Dr. 750
To calls in Advance Account 750
(Being receipt of calls-in-advance from new share-
holders on 75 shares @ 10 each)
Equity Share Third & Final Call Account Dr. 49,750 49,750
To Equity Share Capital Account
(Being third and final call money due on 4,975 (4,900 +
75) shares @ 10 each)
Bank Account Dr. 24,750
Calls-in-Advance Account (2500 + 75) × 10 Dr. 25,750
To Equity Share Third & Final Call Account 49,750
To Equity Share Second Call Account (50 × 15) 750
(Being receipt of third and final call money with arrear
of second call)

Example 4: Pass journal entries in the following cases for forfeiture and reissue of shares:
(a) The directors of Sanjay Ltd. forfeited 100 shares of 50 each fully called up for non-
payment of allotment money of 15 per share and final call of 20 per share. These shares
were reissued to Mr. X for 40 per share.
(b) Wazid Ltd. forfeited 300 shares of 100 each. 70 was called up on which, Mr. Suresh has
paid only 50 for application and allotment money and first call of 20 has been unpaid.
The company forfeited these shares and reissued to Mr. Y crediting 70 per share paid for
a payment of 50 each.

(c) Vijay Limited’s directors forfeited 500 shares of 50 each ( 30 were called up) issued at a
discount of 10% on which Mr. X paid on 15 for application money only. Out of these 500
shares, 300 shares were reissued to Mr. Sohan as 40 called up for 30 per share.

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