Question 57 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 57 Chapter 8 of +2-A

57. Ahold 100 shares of 10 each on which he has paid Rs 1 per share on application.
B holds 200 shares of Rs 10 each on which he has paid Rs 1 and Rs 2 per share on application and allotment respectively.
C holds 300 shares of Rs 1 each and has paid Rs 1 on the application , Rs 2 on allotment and 3 on the first call.
They all fail to pay their arrears and the second call of Rs 2 per share. Shares are forfeited and subsequently reissued @Rs 11 per share as fully paid-up.
Journalise the above.

The solution of Question 57 Chapter 8 of +2-A: - 

Date	Particulars		L.F.	Debit	Credit
	Share capital A/c	Dr		800
	To calls in arrear/c				100
	To forfeited shares A/c				700
	(Being share forfeited )
	Share capital A/c	Dr		1,600
	To calls in arrear A/c				600
	To forfeited shares A/c				1,000
	(Being share forfeited )
	Share capital A/c	Dr		2,400
	To calls in arrear A/c				1,800
	To forfeited shares A/c				600
	(Being share forfeited )
	Bank A/c	Dr		6,600
	To Share capital A/c				6,000
	To Share premium A/c				600
	(Being forfeited share reissue )
	Forfeited share A/c	Dr		2,500
	To capital Reserve A/c				2,500
	(Being the gain on reissue transferred to capital reserve )

 

Calculation of capital reserve
Particulars		Details	Amount
Total Share Forfeiture (Cr.)			2,500
(Total share forfeiture Cr. =100+600+1800=2500 )
Less: Share Forfeiture Debit			(0)
Balance in Share Forfeiture A/c			2500

(Note) Capital Reserve:
= Balance in Share Forfeiture after re-issue per share × Number of Shares reissued
=Rs.5 × 60 = Rs.300

 

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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