Question 42 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 42 Chapter 8 of +2-A – T.S. Grewal 12 Class

By Shubham Sharma 7 Min Read December 20, 2020

Question No.42. - Chapter No.8 - T.S. Grewal +2 Book 2019-Solution-min-min

Question 42 Chapter 8 of +2-A

Table of Contents

The solution of Question 42 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)

42. U.P sugar works ltd. Was registered on 1st January 2019 with n authorized capital of Rs 15,00,000 divided into 15,000 shares of 100 each. The company issued on 1st April 2019, 5,000 shares of 100 each at a premium of Rs 5 per share payable Rs 25 per share on the application , Rs 30 (including premium ) on the allotment and the balance in two equal instalments of Rs 25 each on 1st July and 1st October respectively. All the allotment and call money were paid when due, except in a case of one shareholder who failed to pay the final call on 100 shares held by him. His shares were forfeiture on 1st November after giving him due to notice. Show necessary entries in the books of the company to record these transactions.

The solution of Question 42 Chapter 8 of +2-A: –


Particulars		L.F.	Debit	Credit
Bank A/c	Dr		1,25,000
To share application A/c				1,25,000
(Being the application money received )
Share application A/c	Dr		1,25,000
To Share capital A/c				1,25,000
(Being application money transferred to equity share capital )
Share allotment A/c	Dr		1,50,000
To Security premium reserve A/c				25,000
To Share capital A/c				1,25,000
(Being the allotment money due )
Bank A/c	Dr		1,50,000
To Share allotment A/c				1,50,000
(Being allotment money received )
Share first call A/c	Dr		1,25,000
To share allotment. A/c				1,25,000
(Being the first call money due )
Bank A/c	Dr		1,25,000
To Share first call A/c				1,25,000
(Being first call money received )
Share second and final call A/c	Dr		1,25,000
To Share capital A/c				1,25,000
(Being the second and final call money due )
Bank A/c	Dr		1,22,500
Calls in arrear A/c	Dr		2500
To Share second and final A/c				1,25,000
(Being second and final money received )
Share capital A/c	Dr		10,000
To forfeited shares A/c				7,500
To Share final call. A/c				2,500
(Being share forfeited )