Question 34 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Q-34- CH-8 - Usha +2 Book 2018 - Solution-min

Question 34 Chapter 8 of +2-Part-1

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.

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 34 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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