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Question 34 Chapter 8 of +2-Part-1
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34. Journalise the following transactions in the books of Poonam Ltd. :
(i) (Issue at Premium/Forfeiture/Reissue at Premium) 50 shares of Rs. 10 each issued at a premium of Rs. 5 each payable with allotment were forfeited for the non payment of allotment money of Rs. 9 per share including premium. The first and final call on these shares at Rs. 3 per share were not made. The forfeited shares were re issued @ Rs. 12 per share fully paid up.
(ii) (Issue at Par/Reissue at Discount) 1000 shares of Rs. 10 each issued at par were forfeited for the non payment of the final call of Rs. 2 per share. These shares were re issued @ Rs. 8 per share fully paid up
The solution of Question 34 Chapter 8 of +2 Part-1: –
| Journal | |||||
| Date | Particulars | L.F. | Debit | Credit | |
| A) | Share capital A/c (50 X 7) | Dr. | 350 | ||
| Securities Premium Reserve A/c (50X 5) | Dr. | 250 | |||
| To Share Allotment A/c (50X 9) | 450 | ||||
| To Share Forfeited A/c (50X 3) | 150 | ||||
| (Being forfeiture of 50 shares due to non receipt of allotment money @ RS. 9 per share ) | |||||
| Bank A/c (50X 12) | Dr. | 600 | |||
| To Share Application A/c (50X 5) | 500 | ||||
| To Securities Premium Reserve A/c (50X 2) | 100 | ||||
| (Being reissue of 50 share at premium of Rs. 2 per share ) | |||||
| Share Fortified A/c (150- Nil) | Dr. | 150 | |||
| To Capital Reserve A/c | 150 | ||||
| (Being balance in share fortified transferred to capital reserve) | |||||
| B) | Share capital A/c ( 1000 X 10) | Dr. | 10,000 | ||
| To Share Forfeited A/c ( 1000 X 2) | 2,000 | ||||
| To Share final call A/c ( 1000 X 8) | 8,000 | ||||
| (Being forfeitures of 1000 shares for non receipt of Final call of Rs. 2 per share ) | |||||
| Bank A/c (1000 X 8 ) | Dr. | 8,000 | |||
| Share Fortified A/c (1000X2) | Dr. | 2,000 | |||
| To Share capital A/c (10,000 X 10) | 10,000 | ||||
| (Being fortified shares issued at discount ) | |||||
| Share Fortified A/c (8000-2000) | Dr. | 6,000 | |||
| To Capital Reserve A/c | 6,000 | ||||
| (Being balance in share fortified transferred to capital reserve) | |||||
It all about Question 34 Chapter 8 of +2-Part-1, If you have any problem please comment below.
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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
