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Question 36 Chapter 8 of +2-Part-1
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Table of Contents
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 share 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 | ||
| To Share First and final call A/c (3,000X 40) | 1,20,000 | ||||
| To Share Forfeited A/c (3,000X 60) | 1,80,000 | ||||
| (Being 3,000 shares forfeited due to First and final call Rs.40 of were 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 shares 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.
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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
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