Advertisement
Question 33 Chapter 8 of +2-Part-1
Advertisement
33. (Issue for Consideration other than Cash/Issue for Cash/Forfeiture/Reissue)
Reliance industries Ltd. was registered with a nominal capital of Rs. 5,00,000 in the shares of Rs. 10 each. It purchased a property from Shah for Rs. 1,00,000 payable in fully paid shares of company. Remaining 40.000 shares were offered to the public, payable as follows –
Rs. 2 on application : Rs. 2 on allotment: Rs. 3 on first call and Rs. 3 on final call.
All the shares were subscribed and allotted.
Raman, who holds 100 shares failed to pay both the calls and his shares were forfeited.
These were re-issued to Mohit at Rs. 8.50 per share fully paid.
Record the above in the company’s journal and prepare a balance sheet.
The solution of Question 33 Chapter 8 of +2 Part-1: –
| Journal | |||||
| Date | Particulars | L.F. | Debit | Credit | |
| A) | Property A/c | Dr. | 1,00,000 | ||
| To Shah A/c | 1,00,000 | ||||
| (Being property purchased by shah ) | |||||
| B) | Shah A/c | Dr. | 1,00,000 | ||
| To Share capital A/c | 1,00,000 | ||||
| (Being issue of 10,000 shares @ Rs. 10 each fully paid in payment of property purchased ) | |||||
| C) | Bank A/c (40,000 X 2) | Dr. | 80,000 | ||
| To Share Application A/c | 80,000 | ||||
| (Being the receipt of application money on 40,000 shares @ Rs.2 per share ) | |||||
| D) | Share Application A/c (40,000 X 2) | Dr. | 80,000 | ||
| To Share capital A/c | 80,000 | ||||
| (Being the transfer of application money on 40,000 shares @ Rs. 2 per share ) | |||||
| E) | Share Allotment A/c (40,000 X 2) | Dr. | 80,000 | ||
| To Share capital A/c | 80,000 | ||||
| (Being allotment money due on allotment of 40,000 shares @ Rs. 2 per share ) | |||||
| F) | Bank A/c (40,000 X 2) | Dr. | 80,000 | ||
| To Share allotment A/c | 80,000 | ||||
| (Being allotment money received in full) | |||||
| G) | Share first Call A/c (40,000 X 3) | Dr. | 1,20,000 | ||
| To Share capital A/c | 1,50,000 | ||||
| (Being amount due on first call of 40,000 share @ Rs. 3 per share) | |||||
| H) | Bank A/c (39,900 X 3) | Dr. | 1,19,700 | ||
| Calls in arrear A/c | Dr. | 3,000 | |||
| To Share first Call A/c | 1,20,000 | ||||
| (Being amount received on first call of 39,900 share @ Rs. 3 per share ) | |||||
| I) | Share first Call A/c (40,000 X 3) | Dr. | 1,20,000 | ||
| To Share capital A/c | 1,50,000 | ||||
| (Being amount due on final call of 40,000 share @ Rs. 3 per share) | |||||
| J) | Bank A/c (39,900 X 3) | Dr. | 1,19,700 | ||
| To Share first Call A/c | 1,19,700 | ||||
| (Being amount received on final call of 39,900 share @ Rs. 3 per share ) | |||||
| k) | Share capital A/c ( 100 X 10) | Dr. | 1,000 | ||
| To Share Forfeited A/c ( 100 X 3) | 400 | ||||
| To calls in arrear A/c ( 100 X 6) | 600 | ||||
| (Being forfeitures of 100 shares for non payments of first & Final call money ) | |||||
| L) | Bank A/c (100 X 8.5 ) | Dr. | 850 | ||
| Share Fortified A/c (100X1.5) | Dr. | 150 | |||
| To Share capital A/c | 1,000 | ||||
| M) | Share Fortified A/c (400-150) | Dr. | 250 | ||
| To Capital Reserve A/c | 250 | ||||
| (Being balance in share fortified transferred to capital reserve) | |||||
Working notes : –
| Date | Particulars | Note No. | FIG. RELATING TO CURRENT REPORTNG PERIOD |
| (i) | Equity & Liability | ||
| Shareholders fund | |||
| Share Capital | 1 | 5,00,000 | |
| Reserve & surplus | 2 | 250 | |
| Non current Liabilities | |||
| Current Liabilities | |||
| Total | 5,00,250 | ||
| (ii) | Assets | ||
| Non -Current Assets | |||
| Tangible Asset | 1,00,000 | ||
| Current Assets | |||
| Cash & Cash equivalent | 4,00,250 | ||
| Total | 5,00,250 |
|---|
Note: –
| Date | Particulars | Note No. | FIG. RELATING TO CURRENT REPORTNG PERIOD | FIG. RELATING TO PREVIOUS REPORTNG PERIOD |
| 1 | Shared capital | |||
| Authorized capital | 5,00,000 | |||
| (50,000 shares of Rs. 10 each) | ||||
| 2 | Reserve & surplus | |||
| Capital Reserve | 250 | |||
| 3 | Tangible Asset | |||
| Property | 1,00,000 | |||
| 4 | Cash & Cash equivalent | |||
| Cash at bank | 4,00,250 |
It all about Question 33 Chapter 8 of +2-Part-1, If you have any problem please comment below.
Forfeiture of shares – Its accounting Entries
Advertisement-X
End of Solution
Check Out the Solution of all questions of this chapter:
The solution to all questions of Chapter No. 8 – Company Accounts (Share Capital) Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.
Thanks for completing the chapter. If you understand the question or we have helped you with your homework, please share our website on your social media. We are delighted to help you out.
Advertisement-X
Thanks again.
End of Post
Download a PDF of Chapter No. 8 – Company Accounts (Share Capital):
If you want to download a PDF of this chapter then you can do it. Check out our PDF file on our Store page.
Chapter-Wise Solution of Usha Publication Accountancy – Part 2 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 2 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 8 – Company Accounts (Share Capital)
Advertisement-X
Chapter No. 9 – Company Accounts (Issue of Debentures)
Chapter No. 10 – Company Accounts (Redemption of Debentures)
Chapter No. 11 – Financial Statements of a Company
Chapter No. 12 – Financial Statement Analysis
Chapter No. 13 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 14 – Accounting Ratios
Advertisement-X
Chapter No. 15 – Cash Flow Statement
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 2 Class 12 by Unimax Publication
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Issue of Debentures
- Chapter No. 3 – Redemption of Debentures
- Chapter No. 4 – Financial Statements of a Company (Balance Sheet Only)
- Chapter No. 5 -Financial Statement Analysis
- Chapter No. 6 – Tools/Methods of Financial Analysis
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
Check out Part 1 of both books.
In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 1, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 1 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.
1. Accountancy – Part 1 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 1 Class 12 by Unimax Publication