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Question 26 Chapter 8 of +2-Part-1
26. (Forfeiture of Shares) P Ltd issued 2,000 shares of 100 each payable as follows:
On application Rs. 30
On allotment Rs. 40
On first call Rs. 20
On final call Rs. 10.
Applications for 1,800 shares were received. Manjit did not pay two calls on his 100 shares and Jaswant did not pay final call on his 50 shares.
Shares Manjit and Jaswant were forfeited. Pass entries in Journal
Journal
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| A) | Bank A/c (1,800 X 30) | Dr. | 54,000 | ||
| To Share Application A/c | 54,000 | ||||
| (Being application money received on 1,800 shares @ Rs. 30 per share) | |||||
| B) | Share Application A/c | Dr. | 54,000 | ||
| To Share capital A/c | 54,000 | ||||
| (Being application money transferred to Share cap. A/c) | |||||
| C) | Share Allotment A/c (1,800 X 40) | Dr. | 72,000 | ||
| To Share capital A/c | 72,000 | ||||
| (Being allotment money due on 1,800 share @ 40 per shares) | |||||
| D) | Bank A/c (1,800 X 40) | Dr. | 72,000 | ||
| To Share allotment A/c | 72,000 | ||||
| (Being allotment money received in full) | |||||
| E) | Share first Call A/c (1,800 X 20) | Dr. | 36,000 | ||
| To Share capital A/c | 36,000 | ||||
| (Being first call money due on 1,800 share @ 20 per shares) | |||||
| F) | Bank A/c (1,700 X 20) | Dr. | 34,000 | ||
| Call in arrears A/c (100 X 20) | Dr. | 2,000 | |||
| To Share first Call A/c | 36,000 | ||||
| (Being first call money received on 1,700 share @ 20 per shares & balance in calls in arrears ) | |||||
| G) | Share final Call A/c (1,800 X 10) | Dr. | 18,000 | ||
| To Share capital A/c | 18,000 | ||||
| (Being final call money due on 1,800 share @ 10 per shares) | |||||
| H) | Bank A/c (1,650 X 10 ) | Dr. | 16,500 | ||
| Call in arrears A/c (150 X 10) | Dr. | 1,500 | |||
| To Share final Call A/c | 18,000 | ||||
| (Being second & final call money received on 1,650 share @ 10 per shares & balance in calls in arrears ) | |||||
| I) | Share capital A/c | Dr. | 15,000 | ||
| To Share Forfeited A/c | 11,500 | ||||
| To Call in arrears A/c | 3,500 | ||||
| (Being forfeitures of 150 shares ) | |||||
It all about Question 26 Chapter 8 of +2-Part-1, If you have any problem please comment below.
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Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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