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Question 35 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Q-35- CH-8 - Usha +2 Book 2018 - Solution-min
Q-35- CH-8 - Usha +2 Book 2018 - Solution-min

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Question 35 Chapter 8 of +2-Part-1

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35. (Issue at Premium/Forfeiture/Reissue) Anchor Company forfeited 800 shares of Rs. 10 each, which were issued at 20% premium. Allotment money of Rs. 5 (including premium) and final call of Rs. 3 were not received. Out of these 500 shares were reissued at Rs. 8 per share fully paid up.

(b) What difference will it make if 500 shares are reissued at Rs, 14 per share.

The solution of Question 35 Chapter 8 of +2 Part-1: –

Journal
Date  Particulars
L.F.DebitCredit
A)Share capital A/c (800 X 10)Dr. 8,000 
 Securities Premium A/c (800X 2)Dr. 1,600 
 To Share Allotment A/c (800X 4)   3,200
 To Share Forfeited A/c (800X 8)   6,400
 (Being forfeiture of 800 shares due to non payment of allotment @ RS. 5 & final call Rs. 3 )   
     
 Bank A/c (500X 8)Dr. 4,000 
 Share Fortified A/cDr. 1,000 
 To Share Capital A/c  5,000
 (Being 500 share reissued @ Rs. 8)   
     
 Share Fortified A/cDr. 1,000 
 To Capital Reserve A/c  1,000
 (Being amount transferred to cap. reserve 32,000/800 X 500= 2000-1000 = Rs. 1,000)   
     
B)Bank A/c ( 500X 14)Dr. 7,000 
 To Share Capital A/c ( 500X 10)  5,000
 To Securities Premium A/c  2,000
 (Being 500 share reissued @ Rs. 14)   
     
 Share Fortified A/c (8000-2000)Dr. 2,000 
 To Capital Reserve A/c  2,000
 (Being amount transferred to cap. reserve 32,000/800 X 500= Rs. 2,000)   

It all about Question 35 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

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
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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