Question 40 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 40 Chapter 8 of +2-A – T.S. Grewal 12 Class

By Shubham Sharma 11 Min Read December 20, 2020

Question No.40. - Chapter No.8 - T.S. Grewal +2 Book 2019-Solution-min-min

Question 40 Chapter 8 of +2-A

Table of Contents

The solution of Question 40 Chapter 8 of +2-A: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Alpha Ltd. Issued 20,000 equity shares of Rs 10 each at par payable: on application Rs 2 per share; on allotment RS 3 per share; on first call Rs 2 per share.

Mr Gupte was allotted 100 shares. Pass necessary journal entry relating to the forfeiture of shares in each of the following alternative cases.

Case I if Mr.Gupta failed to pay the allotment money and his share was immediately forfeited.
Case II if Mr.Gupta failed to pay the first call and on his subsequent failure to pay the second and final call, his shares were forfeited.
Case III if Mr.Gupta failed to pay the first call and on his subsequent failure to pay the second and final call, his shares were forfeited.

The solution of Question 40 Chapter 8 of +2-A: –

Case I
	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		40,000
	To share application A/c				40,000
	(Being the application money received )
	Share application A/c	Dr		40,000
	To Share capital A/c				40,000
	(Being application money transferred to equity share capital )
	Share allotment A/c	Dr		60,000
	To Share capital A/c				60,000
	(Being the allotment money due )
	Bank A/c	Dr		59,700
	calls in arrear A/c	Dr		300
	To Share allotment A/c				60,000
	(Being application money transferred to equity share capital )
	Share capital A/c	Dr		500
	To share allotment. A/c				300
	To forfeited shares A/c				200
	(Being share forfeited )

Case II
	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		40,000
	To share application A/c				40,000
	(Being the application money received )
	Share application A/c	Dr		40,000
	To Share capital A/c				40,000
	(Being application money transferred to equity share capital )
	Share allotment A/c	Dr		60,000
	To Share capital A/c				60,000
	(Being the allotment money due )
	Bank A/c	Dr		59,700
	calls in arrear A/c	Dr		300
	To Share allotment A/c				60,000
	(Being application money transferred to equity share capital )
	Share first call A/c	Dr		60,000
	To Share capital A/c				60,000
	(Being the first call money due )
	Bank A/c	Dr		59,700
	Calls in arrear A/c	Dr		300
	To Share first call A/c				60,000
	(Being first call money received )
	Share capital A/c	Dr		800
	To forfeited shares A/c				200
	To share allotment. A/c				300
	To Shares first, call A/c				300
	(Being share forfeited )

Case III
	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		40,000
	To share application A/c				40,000
	(Being the application money received )
	Share application A/c	Dr		40,000
	To Share capital A/c				40,000
	(Being application money transferred to equity share capital )
	Share allotment A/c	Dr		60,000
	To Share capital A/c				60,000
	(Being the allotment money due )
	Bank A/c	Dr		59,700
	calls in arrear A/c	Dr		300
	To Share allotment A/c				60,000
	(Being application money transferred to equity share capital )
	Share first call A/c	Dr		60,000
	To Share capital A/c				60,000
	(Being the first call money due )
	Bank A/c	Dr		59,700
	Calls in arrear A/c	Dr		300
	To Share first call A/c				60,000
	(Being first call money received )
	Share second and final call A/c	Dr		40,000
	To Share capital A/c				40,000
	(Being the second and final call money due )
	Bank A/c	Dr		39,800
	Calls in arrear A/c	Dr		200
	To Share second and final A/c				40,000
	(Being second and final money received )
	Share capital A/c			1,000
	To forfeited shares A/c				500
	To Share the first call. A/c				300
	To Shares final call A/c				200
	(Being share forfeited )