Question 31 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Q-31 - CH-8 - Usha +2 Book 2018 - Solution-min

Question 31 Chapter 8 of +2-Part-1

31. (Forfeiture Entries) A company had allotted 2,000 shares to Maninder. The face value of shares is Rs. 100 and the premium is 20%. Application money is Rs. 30 including 50% premium and allotment is Rs. 50 (including balance of premium). The rest of face value is called on first and final call. Maninder had applied for 2,200 shares. His excess application money is retained for allotment. He did pay any amount did not pay any amount after application.
Pass forfeiture entry


The solution of Question 31 Chapter 8 of +2 Part-1: –

Journal
Date   Particulars
L.F. Debit Credit
A) Share capital A/c (2000X 100) Dr.   2,00,000  
  Securities Premium Reserve A/c (2000X 10) Dr.   20,000  
  To Share Allotment A/c       94,000
  To Share First & Final call A/c       80,000
  To Share Forfeited A/c       46,000
  (Being 2000 shares fortified)      

Working notes : –

(1) Excess application money to be adjusted on allotment
Total Application money received (2,200 × 30) 66,000
Less: Adjusted towards application (2,000 × 30) 60,000
Excess Application money to be adjusted to allotment 6,000
 
(2) Amount not received on allotment:
Total allotment money due from Maninder (2,000 × 50) 1,00,000
Less: Advance Application money adjusted 6,000
Amount not received on allotment 94,000

It all about Question 31 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 31 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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