Question 29 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Q-29 - CH-8 - Usha +2 Book 2018 - Solution-min

Question 29 Chapter 8 of +2-Part-1

29. (a) (Forfeiture of Shares) Amritsar Textiles forfeited 250 shares of Rs. 100 each issued at premium of Rs. 25. Amount payable Rs. 30 on application: Rs. 55 on allotment (including premium) and the balance in two equal installments. The shareholder has not paid the allotment and subsequent two calls. Pass entry for forfeiture.

(b) (Forfeiture of Shares) What difference will be there if the two call are not received by the company in the above questions

The solution of Question 29 Chapter 8 of +2 Part-1: –

Face value share =Rs. 100

Premium =Rs. 25

Total Price =Rs. 125

App. Money =Rs. 30

Allotment money =Rs. 55

App. Money + Allotment money  =Rs. 85

Balance in two equal installments [(125-85)= 40/2 =20]  =Rs. 125

Journal
Date   Particulars
L.F. Debit Credit
A) Share capital A/c (250X 100) Dr.   25,000  
  Securities Premium Reserve A/c (250X 100) Dr.   6,250  
  To Share Forfeited A/c (250 X 30)       7,500
  To Calls in arrears A/c (250 X 95)       23,750
  (Being 250 shares of Rs. 100 each issued at premium of Rs. 25 each fortified for non payment & two calls)      
         
B) Share capital A/c (250X 100) Dr.   25,000  
  To Share Forfeited A/c (250 X 50)     12,500
  To Calls in arrears A/c (250 X 50)     12,500
  (Being 250 shares of Rs. 100 each fortified for non payment of two calls of Rs. 50)      

It all about Question 29 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 29 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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