
Question 32 Chapter 8 of +2-Part-1
32. (Oversubscription/Prorata Allotment/Forfeiture/Reissue) KK Ltd., issued 6,000 shares of Rs. 100 each at par. Applications for 8,000 shares were received. Amount is payable RS. 30 on application ; Rs. 45 on allotment and Rs. 25 on final call. Excess money received on application was retained for allotment. Hari holding 500 shares did not pay final call, therefore, his shares were forfeited. These shares were reissued to Garry at 85 fully paid up.
Pass forfeiture entry
The solution of Question 32 Chapter 8 of +2 Part-1: –
Journal |
|||||
Date | Particulars |
L.F. | Debit | Credit | |
A) | Bank A/c (8,000 X 30) | Dr. | 2,40,000 | ||
To Share Application A/c | 2,40,000 | ||||
(Being application money received) | |||||
B) | Share Application A/c | Dr. | 2,40,000 | ||
To Share capital A/c | 1,80,000 | ||||
To Share Allotment A/c | 60,000 | ||||
(Being application money transferred to Share cap. A/c) | |||||
C) | Share Allotment A/c | Dr. | 2,70,000 | ||
To Share capital A/c | 2,70,000 | ||||
(Being allotment money due ) | |||||
D) | Bank A/c (2,70,000-60,000) | Dr. | 2,10,000 | ||
To Share allotment A/c | 2,10,000 | ||||
(Being allotment money received in full) | |||||
E) | Share final Call A/c | Dr. | 1,50,000 | ||
To Share capital A/c | 1,50,000 | ||||
(Being first call money due) | |||||
F) | Bank A/c (5,500 X 25) | Dr. | 1,37,500 | ||
Call in arrears A/c (500 X 25) | Dr. | 12,500 | |||
To Share final Call A/c | 1,50,000 | ||||
(Being final call money received on 5,500 share & arrears On 500 shares) | |||||
G) | Share capital A/c | Dr. | 50,000 | ||
To Share Forfeited A/c | 12,500 | ||||
To Call in arrears A/c | 37,500 | ||||
(Being forfeitures of 500 shares ) | |||||
H) | Bank A/c (500 X 85 ) | Dr. | 42,500 | ||
Share Fortified A/c (500X15) | Dr. | 7,500 | |||
To Share capital A/c | 50,000 | ||||
(Being 500 shares reissued @ Rs. 85 ) | |||||
I) | Share Fortified A/c (500X15) | Dr. | 30,000 | ||
To Capital Reserve A/c | 30,000 | ||||
(Being balance in share fortified transferred to capital reserve) |
It all about Question 32 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
- 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
