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

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

Question 35 Chapter 8 of +2-Part-1

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. Debit Credit
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/c Dr.   1,000  
  To Share Capital A/c     5,000
  (Being 500 share reissued @ Rs. 8)      
         
  Share Fortified A/c Dr.   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.

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 35 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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