Question no 58 Chapter 1- Class 12 Part 2 Unimax

Question no 58 Chapter 1- Class 12 Part 2 Unimax

X Ltd. issued ₹ 10,000 shares of ₹ 100 each at a premium of ₹ 40 per share. Amount was payable as follows:

On application	₹ 20 (including premium ₹ 10 per share)
On allotment	₹ 50 (including premium ₹ 30 per share)
On first call	₹ 30
On final call	₹ 30
On second & final call	₹ 40

Applications were received for ₹ 8,000 shares and all were accepted. All money was received except:
(1) A, holding 100 shares failed to pay allotment money and his shares were forfeited after allotment.
(2) B holding 200 shares failed to pay first call money and shares were forfeited after first call.
(3) C, holding 300 shares failed to pay first and second call money and her shares were forfeited.
All the forfeited shares were reissued at a discount of 5% as fully paid-up.
Pass the necessary journal entries in the books of X Ltd.

The solution of Question no 58 Chapter 1- Class 12 Part 2 Unimax: -

Journal

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		1,60,000
	To  Shares Application A/c				1,60,000
	(Being application money received)
	Share application A/c	Dr.		1,60,000
	To share capital A/c				80,000
	To securities premium reserve A/c				80,000
	(Being application money transferred)
	Shares allotment A/c	Dr.		4,00,000
	To shares capital A/c				1,60,000
	To securities premium reserve A/c				2,40,000
	(Being allotment money due on 8,000 shares)
	Bank A/c	Dr.		3,95,000
	To shares allotment A/c				3,95,000
	(Being allotment money received on 7,900 shares)
	Shares capital A/c	Dr.		3,000
	Securities premium reserve A/c	Dr.		3,000
	To share allotment A/c				5,000
	To share forfeited A/c				1,000
	(Being 100 shares forfeited)
	Share first call A/c	Dr.		2,37.000
	To shares capital A/c				2,37.000
	(Being first call money due)
	Bank A/c	Dr.		2,22,000
	To share first call A/c				2,22,000
	(Being share first call money received on 7,400 shares)
	Share capital A/c	Dr.		12,000
	To share first call A/c				6,000
	To share forfeited A/c				6,000
	(Being 200 shares forfeited)
	Shares second & final call A/c	Dr.		3,08,000
	To share capital A/c				3,08,000
	(Being second call money due)
	Bank A/c	Dr.		2,96,000
	To share second & final call A/c				2,96,000
	(Being share second call money received on 7,400 shares)
	Shares capital A/c	Dr.		30,000
	To share first call A/c				9,000
	To share second & final call A/c				12,000
	To share forfeited A/c				9,000
	(Being forfeited shares reissued)
	Bank A/c	Dr.		57,000
	Forfeiture A/c	Dr.		3,000
	To share capital A/c				60,000
	(Being share reissued @ 5% discount)
	Share forfeited A/c	Dr.		13,000
	To capital reserve A/c				13,000
	(Being balanced of share forfeiture transferred to capital reserve)

 

	₹
Total of share forfeited account (1,000+6,000+9,000)	16,000
Less: loss on reissue	3,000
Amount transferred to capital reserve	13000