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Question no 44 Chapter 1- Class 12 Part 2 Unimax
X Ltd. forfeited 100 shares of ₹ 10 each (₹ 8 called up) issued at a premium of ₹ 2 per share to Mr. R, on which he had paid application money of ₹ 5 per shares, for non-payment of allotment money of ₹ 5 per shares (including premium). Out of these, 70 shares were reissued to Mr. Sanjay as ₹ 8 called for ₹ 7 per share. Given necessary journal entries relating to forfeiture and reissue of shares.
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| Equity Shares capital A/c (100*8) | Dr. | 800 | |||
| Securities Premium A/c (100*2) | Dr. | 200 | |||
| To Shares allotment A/c (100*5) | 500 | ||||
| To shares forfeited A/c (100*5) | 500 | ||||
| (Being 100 shares forfeited @ 10each (8 called up) for non-payment of allotment including premium)) | |||||
| Bank A/c (70*7) | Dr. | 490 | |||
| Shares forfeited A/c (70*1) | Dr. | 70 | |||
| To Equity share capital A/c | 560 | ||||
| (Being 70 shares were reissued to Mr. Sanjay ₹ 8 called for ₹ 7 per share) | |||||
| Shares forfeited A/c | Dr. | 280 | |||
| To Capital reserve A/c | 280 | ||||
| (Being shares forfeited money transferred to capital reserve) | |||||
Working Note:
1. Calculate of amount transferred to capital reserve A/c
| Amount forfeited on 100 shares | = ₹ 500 |
| Amount forfeited on 70 shares | = 500/100 x 70 = 350 |
| Less: Discount allowed on reissued shares | =70 |
| Profit transferred to capital reserve A/c | =280 |
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 no 44 Chapter 1- Class 12 Part 2 Unimax", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Unimax Accountancy Class 12 Part 2 - 2023.
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