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Question 26 Chapter 8 of +2-Part-1
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Table of Contents
26. (Forfeiture of Shares) P Ltd issued 2,000 shares of 100 each payable as follows:
On application Rs. 30
On allotment Rs. 40
On first call Rs. 20
On final call Rs. 10.
Applications for 1,800 shares were received. Manjit did not pay two calls on his 100 shares and Jaswant did not pay final call on his 50 shares.
Shares Manjit and Jaswant were forfeited. Pass entries in Journal
The solution of Question 26 Chapter 8 of +2 Part-1: –
| Journal | |||||
| Date | Particulars | L.F. | Debit | Credit | |
| A) | Bank A/c (1,800 X 30) | Dr. | 54,000 | ||
| To Share Application A/c | 54,000 | ||||
| (Being application money received on 1,800 shares @ Rs. 30 per share) | |||||
| B) | Share Application A/c | Dr. | 54,000 | ||
| To Share capital A/c | 54,000 | ||||
| (Being application money transferred to Share cap. A/c) | |||||
| C) | Share Allotment A/c (1,800 X 40) | Dr. | 72,000 | ||
| To Share capital A/c | 72,000 | ||||
| (Being allotment money due on 1,800 share @ 40 per shares) | |||||
| D) | Bank A/c (1,800 X 40) | Dr. | 72,000 | ||
| To Share allotment A/c | 72,000 | ||||
| (Being allotment money received in full) | |||||
| E) | Share first Call A/c (1,800 X 20) | Dr. | 36,000 | ||
| To Share capital A/c | 36,000 | ||||
| (Being first call money due on 1,800 share @ 20 per shares) | |||||
| F) | Bank A/c (1,700 X 20) | Dr. | 34,000 | ||
| Call in arrears A/c (100 X 20) | Dr. | 2,000 | |||
| To Share first Call A/c | 36,000 | ||||
| (Being first call money received on 1,700 share @ 20 per shares & balance in calls in arrears ) | |||||
| G) | Share final Call A/c (1,800 X 10) | Dr. | 18,000 | ||
| To Share capital A/c | 18,000 | ||||
| (Being final call money due on 1,800 share @ 10 per shares) | |||||
| H) | Bank A/c (1,650 X 10 ) | Dr. | 16,500 | ||
| Call in arrears A/c (150 X 10) | Dr. | 1,500 | |||
| To Share final Call A/c | 18,000 | ||||
| (Being second & final call money received on 1,650 share @ 10 per shares & balance in calls in arrears ) | |||||
| I) | Share capital A/c | Dr. | 15,000 | ||
| To Share Forfeited A/c | 11,500 | ||||
| To Call in arrears A/c | 3,500 | ||||
| (Being forfeitures of 150 shares ) | |||||
It all about Question 26 Chapter 8 of +2-Part-1, If you have any problem please comment below.
Forfeiture of shares – Its accounting Entries
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You can also Check out the solved question of other Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
