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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Grofers Ltd., having an authorised capital of ₹25,00,000, issued 2,00,000 equity shares of ₹10 each for subscription, payable ₹4 on application, ₹3 on allotment, and the balance on first and final call. The shares were fully subscribed and due amounts were received, except the first and final call on 4,000 shares held by Rana. These shares were forfeited. Later, half of these shares were reissued as fully paid-up, and ₹14,000 was transferred to Capital Reserve. Pass the Journal entries for forfeiture and reissue of shares.
Issued and Subscribed Capital: 2,00,000 shares of ₹10 each, payable ₹4 on application, ₹3 on allotment, ₹3 on first and final call.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c (2,00,000 × ₹4) Dr. | 8,00,000 | |||
| To Share Application A/c | 8,00,000 | |||
| (Application money received) | ||||
| Share Application A/c Dr. | 8,00,000 | |||
| To Share Capital A/c | 8,00,000 | |||
| (Application money transferred to Share Capital) | ||||
| Share Allotment A/c (2,00,000 × ₹3) Dr. | 6,00,000 | |||
| To Share Capital A/c | 6,00,000 | |||
| (Allotment due) | ||||
| Bank A/c Dr. | 6,00,000 | |||
| To Share Allotment A/c | 6,00,000 | |||
| (Allotment money received) | ||||
| Share First and Final Call A/c (2,00,000 × ₹3) Dr. | 6,00,000 | |||
| To Share Capital A/c | 6,00,000 | |||
| (First and final call due) | ||||
| Bank A/c (1,96,000 × ₹3) Dr. | 5,88,000 | |||
| Calls-in-Arrears A/c (4,000 × ₹3) Dr. | 12,000 | |||
| To Share First and Final Call A/c | 6,00,000 | |||
| (First and final call received except on Rana’s 4,000 shares) | ||||
| Share Capital A/c (4,000 × ₹10) Dr. | 40,000 | |||
| To Forfeited Shares A/c (4,000 × ₹7) | 28,000 | |||
| To Calls-in-Arrears A/c (4,000 × ₹3) | 12,000 | |||
| (Rana’s 4,000 shares forfeited for non-payment of the first and final call) | ||||
| Bank A/c (2,000 × ₹10) Dr. | 20,000 | |||
| To Share Capital A/c (2,000 × ₹10) | 20,000 | |||
| (2,000 of the forfeited shares reissued at par, fully paid-up) | ||||
| Forfeited Shares A/c Dr. | 14,000 | |||
| To Capital Reserve A/c | 14,000 | |||
| (Full forfeited amount on the 2,000 reissued shares transferred to Capital Reserve, since reissued at par with no discount: 28,000 × 2,000 ÷ 4,000 = 14,000) |
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.81 - Share Capital", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Share Capital.
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