Question 33 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Q-33- CH-8 - Usha +2 Book 2018 - Solution-min

Question 33 Chapter 8 of +2-Part-1

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. 3 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 settlement)      
         
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  
  To Share first Call A/c     1,19,700
  (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 Share first call A/c ( 100 X 3)     300
  To Share final call A/c ( 100 X 3)     300
  (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 FIG. RELATING TO PREVIOUS REPORTNG PERIOD
(i) Equity & Liability      
  Shareholders fund      
  Share Capital 1 5,00,000  
  Capital Reserve 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      
  Cash at bank   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

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 33 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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