Question 32 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Q-32- CH-8 - Usha +2 Book 2018 - Solution-min

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

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

Leave a Reply

Your email address will not be published. Required fields are marked *