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Question 40 Chapter 8 of +2-Part-1
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40. (Prorata Allotment/Forfeiture/Reissue) A Limited Company invites 50,000 equity shares of Rs. 10 each payable as follows:
On application Rs.3
On allotment RS. 4
On first call Rs. 2
On final call the balance.
Applications were received for 55,000 shares. Allotments were made on the following basis:
(i)To applicants for 35,000 shares-in full.
(ii)To applicants for 20,000 shares-15,000 shares.
Excess money paid on application was utilized towards allotment money. A shareholder who was allotted 1,500 shares out of the group applying for 20,000 shares failed to pay allotment money and money due on calls. These shares were forfeited. 1,000,forfeited shares were re-issued as fully paid on receipt of Rs. 8 per share.
Required: Show the journal entries in the books of company.
The solution of Question 40 Chapter 8 of +2 Part-1: –
| Journal | |||||
| Date | Particulars | L.F. | Debit | Credit | |
| A) | Bank A/c | Dr. | 1,65,000 | ||
| To Equity Share Application A/c | 1,65,000 | ||||
| (Being the receipt of application money on 55,000 shares @ Rs.3 per share ) | |||||
| B) | Equity Share Application A/c | Dr. | 1,65,000 | ||
| To Equity Share capital A/c | 1,50,000 | ||||
| To Equity Share allotment A/c | 15,000 | ||||
| (Being the transfer of application money of 50,000 shares ) | |||||
| C) | Equity Share Allotment A/c | Dr. | 2,00,000 | ||
| To Equity Share capital A/c | 2,00,000 | ||||
| (Being allotment money due on allotment of 50,000 shares @ Rs. 4 per share ) | |||||
| D) | Bank A/c | Dr. | 1,80,500 | ||
| To Equity Share allotment A/c | 1,80,500 | ||||
| (Being balance allotment money received on 48,500 shares) | |||||
| E) | Equity Share first Call A/c | Dr. | 1,00,000 | ||
| To Equity Share capital A/c | 1,00,000 | ||||
| (Being amount due on first call of 50,000 share @ Rs. 2 per share) | |||||
| F) | Bank A/c | Dr. | 97,000 | ||
| To Equity Share first Call A/c | 97,000 | ||||
| (Being amount received on final call of 19500 share ) | |||||
| G) | Equity Share Second & final Call A/c | Dr. | 50,000 | ||
| To Equity Share capital A/c | 50,000 | ||||
| (Being amount due on final call of 48,500 share) | |||||
| H) | Bank A/c (19,600 X 3) | Dr. | 48,500 | ||
| To Equity Share Second & final Call A/c | 48,500 | ||||
| (Being amount received on final call of 48,500 share | |||||
| I) | Equity Share capital A/c | Dr. | 15,000 | ||
| To Equity Share Allotment A/c | 4,500 | ||||
| To Equity Share first call A/c | 3,000 | ||||
| To Equity Share Second final call A/c | 1,500 | ||||
| To Equity Share Forfeited A/c | 6,000 | ||||
| (Being 1500 shares fortified as per board reso. No.) | |||||
| J) | Bank A/c (500 X 8 ) | Dr. | 8,000 | ||
| Share Fortified A/c (500X2) | Dr. | 2,000 | |||
| To Equity Share capital A/c | 10,000 | ||||
| (Being 400 shares reissued @ 20 % discount ) | |||||
| K) | Share Fortified A/c (6,000 X 1,000/15,000-2,000) | Dr. | 2,000 | ||
| To Capital Reserve A/c | 2,000 | ||||
| (Being balance in share fortified transferred to capital reserve) | |||||
It all about Question 40 Chapter 8 of +2-Part-1, If you have any problem please comment below.
Forfeiture of shares – Its accounting Entries
End of Solution
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Question 05 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1
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Question 19D Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1
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Question 36 Chapter 8 of +2-Part-1 – USHA Publication
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Chapter-Wise Solution of Usha Publication Accountancy – Part 2 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 2 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 8 – Company Accounts (Share Capital)
Chapter No. 9 – Company Accounts (Issue of Debentures)
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Chapter No. 10 – Company Accounts (Redemption of Debentures)
Chapter No. 11 – Financial Statements of a Company
Chapter No. 12 – Financial Statement Analysis
Chapter No. 13 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 14 – Accounting Ratios
Chapter No. 15 – Cash Flow Statement
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- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Issue of Debentures
- Chapter No. 3 – Redemption of Debentures
- Chapter No. 4 – Financial Statements of a Company (Balance Sheet Only)
- Chapter No. 5 -Financial Statement Analysis
- Chapter No. 6 – Tools/Methods of Financial Analysis
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
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