Question 36 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Q-36- CH-8 - Usha +2 Book 2018 - Solution-min

Question 36 Chapter 8 of +2-Part-1

36. (Issue at Premium/Forfeiture/Reissue) Phillips Company forfeited 3,000 shares of Rs. 100 each issued at 10% premium. The holder of these shares has paid application and allotment money Rs. 65 (including 5 premium). First call and final call were not received. The company reissued 2,000 shares at Rs. 70 per shares fully paid up.

Required: Entries in Journal

The solution of Question 36 Chapter 8 of +2 Part-1: –

Journal
Date   Particulars
L.F. Debit Credit
A) Share capital A/c (3,000 X 100) Dr.   3,00,000  
  Securities Premium A/c (3,000X 5) Dr.   15,000  
  To Share Allotment A/c (3,000X 60)       1,80,000
  To Share Forfeited A/c (3,000X 45)       1,35,000
  (Being 3,000 shares fortified final call Rs. 45 including Rs. 5 premium not received )      
         
  Bank A/c (2,000X 70) Dr.   1,40,000  
  Share Fortified A/c (2,000X 3) Dr.   60,000  
  To Share Capital A/c     2,00,000
  (Being 2,000 share reissued @ Rs. 70)      
         
  Share Fortified A/c Dr.   60,000  
  To Capital Reserve A/c     60,000
  (Being amount transferred to cap. reserve 1,80,000/3,000 X 2,000= 1,20,000-60,000 = Rs. 60,000)      

It all about Question 36 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 36 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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