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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. | 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.
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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
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