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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Sunshine Ltd. issued 20,000 shares of ₹100 each, payable ₹25 on application, ₹25 on allotment, and the balance in two calls of ₹25 each. The company did not make the final call of ₹25 per share. All money was duly received except the first call amount on 400 shares held by Mr. Modi. The Board forfeited these shares and subsequently reissued them at ₹75 per share paid-up, for a sum of ₹28,000. Journalise the transactions and prepare the Share Capital Account.
Called-up per share (final call not made) = Application ₹25 + Allotment ₹25 + First Call ₹25 = ₹75.
JOURNAL (Books of Sunshine Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c Dr. | 5,00,000 | |||
| To Share Application A/c | 5,00,000 | |||
| Share Application A/c Dr. | 5,00,000 | |||
| To Share Capital A/c | 5,00,000 | |||
| Share Allotment A/c Dr. | 5,00,000 | |||
| To Share Capital A/c | 5,00,000 | |||
| Bank A/c Dr. | 5,00,000 | |||
| To Share Allotment A/c | 5,00,000 | |||
| Share First Call A/c Dr. | 5,00,000 | |||
| To Share Capital A/c | 5,00,000 | |||
| Bank A/c Dr. | 4,90,000 | |||
| Calls-in-Arrears A/c Dr. | 10,000 | |||
| To Share First Call A/c | 5,00,000 | |||
| (First call received on 19,600 shares; Modi’s 400 shares in arrears) | ||||
| Share Capital A/c (400 × ₹75) Dr. | 30,000 | |||
| To Share Forfeiture A/c | 20,000 | |||
| To Calls-in-Arrears A/c | 10,000 | |||
| (400 shares, ₹75 called-up, forfeited for non-payment of the first call) | ||||
| Bank A/c Dr. | 28,000 | |||
| Share Forfeiture A/c Dr. | 2,000 | |||
| To Share Capital A/c | 30,000 | |||
| (400 shares, ₹75 paid-up, reissued for ₹28,000) | ||||
| Share Forfeiture A/c Dr. | 18,000 | |||
| To Capital Reserve A/c | 18,000 | |||
| (Balance of Share Forfeiture after reissue transferred to Capital Reserve) |
SHARE CAPITAL ACCOUNT
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Share Forfeiture A/c (on forfeiture) | 20,000 | By Share Application A/c | 5,00,000 |
| To Calls-in-Arrears A/c (on forfeiture) | 10,000 | By Share Allotment A/c | 5,00,000 |
| To Balance c/d | 15,00,000 | By Share First Call A/c | 5,00,000 |
| By Bank A/c (reissue) | 28,000 | ||
| By Share Forfeiture A/c (reissue) | 2,000 | ||
| Total | 15,30,000 | Total | 15,30,000 |
Note: The closing balance of ₹15,00,000 represents all 20,000 shares at ₹75 called-up (the final call was never made).
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 "T.S. Grewal Class 12 Vol 2 Chapter 1 Q.68 - Share Capital", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Share Capital.
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