Question 60 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 60 Chapter 8 of +2-A

60. Slow & Steady Ltd. invited  applications for 10,000 Equity Shares of ₹ 10 each for public subscription. The amount of these shares was payable as:On application ₹ 1 per share, on allotment ₹ 2 per share, on first call ₹ 3 per share and on second and final call ₹ 4 per share.All sums payable on application, allotment and calls were duly received with the following exceptions: (i)   A, who held 200 shares, failed to pay the money on allotments and calls.(ii)  B, to whom 150 shares were allotted, failed to pay the money on first call and final call.(iii) C, who held 50 shares, did not pay the amount of second and final call.The shares of A, B and C were forfeited and were subsequently reissued for cash as fully paid-up at a discount of 5%.Pass necessary Journal entries to record these transactions in the books of X Ltd.

The solution of Question 60 Chapter 8 of +2-A: - 

Issued and Applied 10,000 Shares of 10 each

				A		B		C	=	Paid-up Share
Application	Rs.1	(10,000	-						=	10,000)
Allotment	Rs.2	(10,000	-	200	-	150			=	9,800)
First Call	Rs.3	(10,000	-	200	-	150			=	9,650)
Second and Final Call	Rs.4	(10,000	-	200	-	150	-	50	=	9,600)
Called - up	Rs.10

 

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		10,000
	To share application A/c				10,000
	(Being the application money received )
	Share application A/c	Dr		10,000
	To Share capital A/c				10,000
	(Being application money transferred to equity share capital )
	Share allotment A/c	Dr		20,000
	To Share capital A/c				20,000
	(Being the allotment money due )
	Bank A/c	Dr		19,600
	calls in arrear A/c	Dr		400
	To Share allotment A/c				20,000
	(Being application money transferred to equity share capital )
	Share first call A/c	Dr		30,000
	To Share capital A/c				30,000
	(Being the first call money due )
	Bank A/c	Dr		28,950
	Calls in arrear A/c	Dr		1,050
	To Share first call A/c				30,000
	(Being first call money received )
	Share final call A/c	Dr		40,000
	To Share capital A/c				40,000
	(Being the final call money due )
	Bank A/c	Dr		38,400
	Calls in arrear A/c	Dr		1,600
	To Share final call A/c				40,000
	(Being final call money received )
	Bank A/c	Dr		6,000
	Share forfeiture A/c	Dr		4,000
	To Share capital A/c				10,000
	(Being forfeited share reissue )
	Equity share capital A/c	Dr		2,000
	To Share forfeiture A/c				200
	To calls in arrear A/c				1,800
	(Being final call money received )
	Equity share capital A/c	Dr		1,500
	To Share forfeiture A/c				450
	To calls in arrear A/c				1,050
	(Being forfeited share reissue )
	Equity share capital A/c	Dr		500
	To Share forfeiture A/c				300
	To calls in arrear A/c				200
	(Being forfeited share reissue )

 

Particulars		Details	Amount
Calculation of capital reserve
Share Forfeiture (Cr.)		700
Less: Share Forfeiture Debit		(400)
Balance in Share Forfeiture A/c			300

Calculation of Capital Reserve
= Total Share Forfeiture Cr.(at the time of cancellation of shares)  - Total Share Forfeiture Dr.(at the time of re-issues of shares)
= Rs.950  -  Rs.200 = Rs.750
 

 

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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