Question 44 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 44 Chapter 8 of +2-A

44. A company issued 10,000 shares of the value of Rs 10 each, payable Rs 3 on the application , Rs 3 on the allotment and Rs 4 on the first and final call. All the amount are duly received except the call money on 100 shares these shares are subsequently forfeited by directors and are resolved as fully paid –up for Rs 500.
Give necessary journal entries.

The solution of Question 44 Chapter 8 of +2-A: - 

Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		30,000
	To share application A/c				30,000
	(Being the application money received )
	Share application A/c	Dr		30,000
	To Share capital A/c				30,000
	(Being application money transferred to equity share capital )
	Share allotment A/c	Dr		30,000
	To Share capital A/c				30,000
	(Being the allotment money due )
	Bank A/c	Dr		30,000
	To Share allotment A/c				30,000
	(Being allotment money received )
	Share first call A/c	Dr		40,000
	To share allotment. A/c				40,000
	(Being the first call money due )
	Bank A/c	Dr		39,600
	Calls in arrear A/c	Dr		400
	To Share first call A/c				40,000
	(Being first call money received )
	Share capital A/c	Dr		1,000
	To Share the first and final call. A/c				400
	To Shares forfeit A/c				600
	(Being share forfeited )
	Bank A/c	Dr		500
	Shares forfeit A/c	Dr		500
	To Share capital A/c				1,000
	(Being forfeited share were reissued )
	Forfeited share A/c			100
	To capital Reserve A/c				100
	(Being the gain on reissue transferred to capital reserve )

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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

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