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Question 35 Chapter 8 of +2-Part-1
35. (Issue at Premium/Forfeiture/Reissue) Anchor Company forfeited 800 shares of Rs. 10 each, which were issued at 20% premium. Allotment money of Rs. 5 (including premium) and final call of Rs. 3 were not received. Out of these 500 shares were reissued at Rs. 8 per share fully paid up.
(b) What difference will it make if 500 shares are reissued at Rs, 14 per share.
Journal
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| A) | Share capital A/c (800 X 10) | Dr. | 8,000 | ||
| Securities Premium A/c (800X 2) | Dr. | 1,600 | |||
| To Share Allotment A/c (800X 4) | 3,200 | ||||
| To Share Forfeited A/c (800X 8) | 6,400 | ||||
| (Being forfeiture of 800 shares due to non payment of allotment @ RS. 5 & final call Rs. 3 ) | |||||
| Bank A/c (500X 8) | Dr. | 4,000 | |||
| Share Fortified A/c | Dr. | 1,000 | |||
| To Share Capital A/c | 5,000 | ||||
| (Being 500 share reissued @ Rs. 8) | |||||
| Share Fortified A/c | Dr. | 1,000 | |||
| To Capital Reserve A/c | 1,000 | ||||
| (Being amount transferred to cap. reserve 32,000/800 X 500= 2000-1000 = Rs. 1,000) | |||||
| B) | Bank A/c ( 500X 14) | Dr. | 7,000 | ||
| To Share Capital A/c ( 500X 10) | 5,000 | ||||
| To Securities Premium A/c | 2,000 | ||||
| (Being 500 share reissued @ Rs. 14) | |||||
| Share Fortified A/c (8000-2000) | Dr. | 2,000 | |||
| To Capital Reserve A/c | 2,000 | ||||
| (Being amount transferred to cap. reserve 32,000/800 X 500= Rs. 2,000) | |||||
It all about Question 35 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.
This guide covers "Question 35 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication +2 Part 1.
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24 September 2022
28 April 2023
