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HI Ltd. Forfeited 10 shares of Rs 10 each (Rs.6 called up) issued at a discount of 10% to Mr. Y on which he had paid an application money of Rs. 2 per share. Out of these, 8 shares were
reissued to Z as Rs.8 called up for Rs.9 per share. Journalize.
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- A company forfeited 10 shares of rs 10 each (rs 6 called up) ,issued at a discount of 10% to A on which he paid rs 2 per share. Out of these rs 8 shares were reissued to B at rs 8 called up for rs 6 per share. Pass journal entriesThe directors of M Ltd. Resolved that 2000 equity shares of Rs 10 each on which Rs. 7.50 was paid be forfeited for non payment of final call of Rs 2.50 of these 1800 shares were reissued as fully paid for Rs 6 per share. Journalize.Amex Ltd. Forfeited 10 shares of Re. 10 each (Re. 6 called up) issued at a discount of 10 % to Mr. Y on which he has paid an application money of Re. 3 per share.Out of these, 8 shares were re-issued to Z as Re. 8 called up for Re. 9 per share. Journalize.
- Aptech Ltd. Forfeited 300 shares of Re. 10 each , on which first call of Re. 3 per share was not received, the second and final call of Rs. 2 per share has not yet been called. Out of these 75 shares were reissued to G as Rs. 8 paid up for each share. Journalize.Eee ltd. forfeited 200 shares of Rs 10 (Re 8 called up) on which the holder had paid application and allotment money of Re. 5 per share. Out of which 50 shares were re-issued to F Ltd. As fully paid for Re. 8 per share. Journalize.Karnataka Pharma Ltd issued 1,000 equity shares of Rs.100 each at 5% discount. The amount was payable as Rs.20 per share on application, Rs.20 per share on allotment (Discount is to be adjusted) , Rs.25 per share on first call and Rs.30 per share on final call. The issue was fully subscribed. All the calls were made and money was received on all calls except the final call on 100 shares held by Mr.X. His shares were forfeited and reissued at Rs.90 per share as fully paid. Give journal entries for forfeiture and reissue in the books of the company.
- Amar trading Company issued 10,000 equity shares of Rs.10 each at a premium of Rs.2 per share. The amount was payable as follows :Rs.2 on application , Rs.5 an allotment(including premium), Rs.3 on first call and Rs.2 on final call. All the shares were subscribed and money duly received except the final call on 1,000 shares. The directors forfeited the shares and reissued as fully paid at Rs.8 per share. Give journal entries for forfeiture and reissue in the books of the companyOn 1.4.2007 Mr.Krishna Murty purchased 1,000 equity shares of Rs.100 each in TELCO Ltd@Rs.120each from a broker, who charged 2%brokerage.He incurred 50paise per Rs.100 as cost of shares transfer stamps. On 31.1.2008 Bonus was declared in the ratio of 1:2. Before and after the record date of bonus shares, the shares were quoted at Rs.175 per share and Rs.90 per share respectively. On 31.3.2008 Mr. Krishna Murty sold bonus shares to a broker, who charged 2% brokerage. Show the Investment Account in the books of Mr.Krishna Murty, who held the shares as Current assets and closing value of Investments shall be made at cost or Market value whichever is lower. Working notes should form as a part of your answerLacan Products Ltd. invited applications for 500,000 ordinary shares of $1 each at $1.30, payable as 40c on application. 70c (including 30c premium) on allotment, and 20c on first and final call, 4 months after allotment. Applications for all the shares were received and the shares duly allotted. All the allotment money was received but the holder of 1000 shares failed to meet the call and forfeited his shares in accordance with the articles of the company. All the forfeited shares were subsequently reissued as fully paid shares at 80c each. Required: Prepare the following accounts to record the issue of the shares. Application and allotment account Bank account Share Capital and Call accounts Share premium account and investment own shares account
- Sakshi Ltd. Issued a prospectus ,inviting application for 100000 shares of Rs.10 each at a.premium of Rs.5 per share , payable as follows:On application Rs.4.50; on allotment Rs.7.50(including premium); on first call Rs.2 and on final call Re.1.00. Application were received for 125000 shares and allotment was made pro-rated to the pplicantss of 120000 shares, remaining application being refused. Money received in excesson the application was adjusted towards the amount due to allotment. D, to whom 2000 shares were allotted, failed to pay allotment money and on his failure to ayy the first call, is shares were forfeited. M, the holder of 3000 shares, failed to pay the calls, and so is shares were also forfeited. All hesee shares were sold to R, credited as fully paid for Rs.8 per share. Pass necessary journalentries to record the above issue of shares by the company.East Co. issued 1,000 shares of its $5 par common stock toHowe as compensation for 1,000 hours of legal services performed.Howe usually bills $160 per hour for legal services. Onthe date of issuance, the stock was trading on a public exchange at$140 per share. By what amount should the additional paid-incapital account increase as a result of this transaction?ABC Ltd., has part of its share capital as 10,000 Redeemable Preference Shares of Rs. 100 each. When the shares became due for redemption, the company decided that the whole amount will be redeemed out of a fresh issue of equal amount of equity shares of Rs. 10 each. Show the journal entries in the books of the company.