1. X Ltd. forfeited 10 shares of 10 each, 7 called up on which the shareholder had paid application and allotment money of 5 per share. Out of these, 8 shares were re-issued to Y for 8 per share at 8 per paid up per share. Record the journal entries for forfeiture and reissue of shares by opening call in arrear, call in advance account.
  2. L ltd forfeited Mr M’s shares who has applied for 600 shares and was allotted 400 shares failed to pay allotment money of 4 per share including premium of 2 on which he had paid application money of 2 only. Pass necessary journal entries for forfeiture of shares by opening call in arrear, call in advance account.
  3. Crown Ltd forfeited 50 shares of 10 each, for non- payment of final call money of 3 per share. Out of these 20 shares were reissued to Taj at 8 per share. Record the journal entries for forfeiture and reissue of shares assuming that the company maintains call in arrear, call in advance account.

Marks 8, CBSE:2019-20/Sample/Q-22*

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