Question 41 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 41 Chapter 8 of +2-A

41. Ankit ltd. Issued 20,000 equity shares of 10 each at a premium of Rs 2 per share, payable as:.

On Application	Rs 3
On Allotment	RS 5 ( including premium )
On First call	Rs 2
On the second and final call	Rs 2

Vijay was allotted 500 shares. Pass the necessary journal entries relating to the forfeiture of shares in the following cases.
Case I Vijay did not pay allotment money and his shares were Immediately forfeited.
Case II Vijay did not pay allotment and first call, his shares were forfeited.
Case III Vijay failed to pay first call and his shares were forfeited immediately.
Case IV Vijay failed to pay both the calls and his shares were forfeited.

The solution of Question 41 Chapter 8 of +2-A: - 

Case I

Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		60,000
	To share application A/c				60,000
	(Being the application money received )
	Share application A/c	Dr		60,000
	To Share capital A/c				60,000
	(Being application money transferred to equity share capital )
	Share allotment A/c	Dr		1,00,000
	To Security premium reserve A/c				40,000
	To Share capital A/c				60,000
	(Being the allotment money due )
	Bank A/c	Dr		97,500
	calls in arrear A/c	Dr		2500
	To Share allotment A/c				1,00,000
	(Being application money transferred to equity share capital )
	Share capital A/c	Dr		3000
	Security premium reserve A/c			1000
	To share allotment. A/c				2500
	To forfeited shares A/c				1500
	(Being share forfeited )

 

Case II

Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		60,000
	To share application A/c				60,000
	(Being the application money received )
	Share application A/c	Dr		60,000
	To Share capital A/c				60,000
	(Being application money transferred to equity share capital )
	Share allotment A/c	Dr		1,00,000
	To Share capital A/c				60,000
	To Security premium reserve A/c				40,000
	(Being the allotment money due )
	Bank A/c	Dr		97,500
	calls in arrear A/c	Dr		2500
	To Share allotment A/c				1,00,000
	(Being application money transferred to equity share capital )
	Share first call A/c	Dr		40,000
	To Share capital A/c				40,000
	(Being the first call money due )
	Bank A/c	Dr		39,000
	Calls in arrear A/c	Dr		1000
	To Share first call A/c				40,000
	(Being first call money received )
	Share capital A/c	Dr		4,000
	Security premium reserve A/c			1,000
	To forfeited shares A/c				1,500
	To share allotment. A/c				2,500
	To Shares first, call A/c				1,000
	(Being share forfeited )

 

Case III

Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		60,000
	To share application A/c				60,000
	(Being the application money received )
	Share application A/c	Dr		60,000
	To Share capital A/c				60,000
	(Being application money transferred to equity share capital )
	Share allotment A/c	Dr		1,00,000
	To Security premium reserve A/c				40,000
	To Share capital A/c				60,000
	(Being the allotment money due )
	Bank A/c	Dr		1,00,000
	To Share allotment A/c				1,00,000
	(Being application money transferred to equity share capital )
	Share first call A/c	Dr		60,000
	To Share capital A/c				60,000
	(Being the first call money due )
	Bank A/c	Dr		59,700
	Calls in arrear A/c	Dr		300
	To Share first call A/c				60,000
	(Being first call money received )
	Share second and final call A/c	Dr		40,000
	To Share capital A/c				40,000
	(Being the second and final call money due )
	Bank A/c	Dr		39,000
	Calls in arrear A/c	Dr		1000
	To Share second and final A/c				40,000
	(Being second and final money received )
	Share capital A/c			4000
	To forfeited shares A/c				3,000
	To Share the first call. A/c				1,000
	(Being share forfeited )

 

Case III

Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		60,000
	To share application A/c				60,000
	(Being the application money received )
	Share application A/c	Dr		60,000
	To Share capital A/c				60,000
	(Being application money transferred to equity share capital )
	Share allotment A/c	Dr		1,00,000
	To Security premium reserve A/c				40,000
	To Share capital A/c				60,000
	(Being the allotment money due )
	Bank A/c	Dr		1,00,000
	To Share allotment A/c				1,00,000
	(Being application money transferred to equity share capital )
	Share first call A/c	Dr		60,000
	To Share capital A/c				60,000
	(Being the first call money due )
	Bank A/c	Dr		59,700
	Calls in arrear A/c	Dr		300
	To Share first call A/c				60,000
	(Being first call money received )
	Share second and final call A/c	Dr		40,000
	To Share capital A/c				40,000
	(Being the second and final call money due )
	Bank A/c	Dr		39,000
	Calls in arrear A/c	Dr		1000
	To Share second and final A/c				40,000
	(Being second and final money received )
	Share second and final call A/c			40,000
	To Share capital A/c				40,000
	(Being the second and final call money due )				1,000
	Bank A/c	Dr		39,000
	Calls in arrear A/c	Dr		1,000
	To Share second and final A/c				40,000
	(Being second and final money received )
	Share capital A/c	Dr		5000
	To forfeited shares A/c				3,000
	To Share the first call. A/c				1,000
	To Share the second call. A/c				1,000
	(Being share forfeited )

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Also, Check out the solved question of previous Chapters: -

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication