Question no 47 Chapter 1- Class 12 Part 2 Unimax

Question No  47 Chapter 1 - Unimax Class 12 Part 2 - 2021

Pass journal entries in the following cases:
M limited forfeited 2,000 equity shares of ₹ 10 each, issued at a premium of ₹ 5 per shares held by ram for non-payment of the final call of ₹ 3 per shares Of these, 100 shares were reissued to VISHU at a discount of ₹ 4 per shar.

The solution of Question no 47 Chapter 1- Class 12 Part 2 Unimax: -

In the books of M/S M. Ltd.
Journal entries

Date	Particulars		L.F.	Debit	Credit
	Equity Shares capital A/c	Dr.		20,000
	To Shares Final Call A/c				600
	To shares forfeited A/c				1,400
	(Being 2000 equity shares forfeited due to non-payment of final call money)
	Bank A/c	Dr.		600
	Shares forfeited A/c	Dr.		400
	To Equity share capital A/c				1,000
	(Being 100 equity shares reissued at a discount of ₹ 4 PR share)
	Shares forfeited A/c	Dr.		300
	To Capital reserve A/c				300
	(Being profit on 100 forfeited equity shares transferred to capital reserve)

Working Note:

1. Calculate of Amount Transferred to Capital Reserve

Amount forfeited on 200 equity shares	= ₹ 1400
Amount forfeited on 100 equity shares	= 14,00/2,000  x  100 = 700
Less: Discount allowed on reissued shares	=400
Balance credited to capital reserve A/c	=₹ 300