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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Pass the necessary Journal entries in the books of the company for the following transactions: Vishesh Ltd. forfeited 1,000 Equity Shares of ₹10 each, issued at a premium of ₹2 per share, for non-payment of allotment money of ₹5 per share (including premium). The final call of ₹2 per share was not yet made on these shares. Of the forfeited shares, 800 shares were reissued at ₹12 per share, fully paid-up. The remaining shares were reissued at ₹11 per share, fully paid-up. (CBSE 2013 C)
JOURNAL (Books of Vishesh Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Equity Share Capital A/c (1,000 × ₹8) Dr. | 8,000 | |||
| Securities Premium Reserve A/c (1,000 × ₹2) Dr. | 2,000 | |||
| To Share Forfeiture A/c | 5,000 | |||
| To Calls-in-Arrears A/c | 5,000 | |||
| (1,000 shares, issued at a premium of ₹2, forfeited for non-payment of allotment money of ₹5 including premium; final call of ₹2 not yet made) | ||||
| Bank A/c (800 × ₹12) Dr. | 9,600 | |||
| To Share Capital A/c | 8,000 | |||
| To Securities Premium Reserve A/c | 1,600 | |||
| (800 shares reissued at ₹12 per share, fully paid-up) | ||||
| Bank A/c (200 × ₹11) Dr. | 2,200 | |||
| To Share Capital A/c | 2,000 | |||
| To Securities Premium Reserve A/c | 200 | |||
| (200 shares reissued at ₹11 per share, fully paid-up) | ||||
| Share Forfeiture A/c Dr. | 5,000 | |||
| To Capital Reserve A/c | 5,000 | |||
| (Balance in Share Forfeiture Account, all 1,000 shares having been reissued above par, transferred to Capital Reserve) |
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.89 - Share Capital", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Share Capital.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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