Question 26 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Q-26 - CH-8 - Usha +2 Book 2018 - Solution-min

Question 26 Chapter 8 of +2-Part-1

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 share 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 as 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 as 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 as 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 as 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 @ 100 as 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

You can also Check out the solved question of other Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 26 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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