Question 44 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Q-44 - CH-8 - Usha +2 Book 2018 - Solution-min

Question 44 Chapter 8 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

44. (Prorata Allotment/Forfeiture/Reissue) K Ltd. has been registered with an authorised capital of Rs. 3,00,000 divided into 3,000 shares of Rs. 100 each of which 1,500 shares were offered for public subscription at a premium of 5 per share payable as under:
On application Rs. 10
On allotment Rs.25 (including premium)
On first call Rs. 40
On final call Rs.30
Applications were received for 2,000 shares of which applications for 200 shares were rejected the rest of the applications were allotted 1,500 shares on pro-rata basis, Excess application money was transferred to allotment.
all moneys were duly received except from Sunder holder of 300 shares who failed to pay allotment money and first call money.
His shares were later forfeited and reissued to Shyam at Rs. 60 per share Rs. 70 paid up. Final call has not been made.

The solution of Question 44 Chapter 8 of +2 Part-1: –

  Applied Allotted
Refund 200  
Pro rate 1,800 1,500
  2,000 1,500

Cash Book (Bank Column Only)

Particulars Rs. Particulars Rs.
To Share Application A/c 20,000 By Share Application A/c 2,000
To Share Allotment A/c 27,600 By Balance c/d 1,11,600
To Share First call A/c 48,000    
To Share Capital A/c 18,000    
  1,13,600   1,13,600
Journal
Date   Particulars
L.F. Debit Credit
A) Bank A/c(2,000 X 10) Dr.   20,000  
  To Share Application A/c       20,000
  (Being the receipt of application money)        
           
B)  Share Application A/c Dr.   20,000  
  To Share capital A/c     15,000
  To Share final A/c     2,000
  To Bank A/c     3,000
  (Being 1,800 shares allotted excess retained for allotment & refunded)        
           
C) Share allotment Call A/c Dr.   37,500  
  To Share capital A/c     30,000
  To Securities Premium Reserve A/c     7,500
  (Being amount due on allotment )        
         
D) Bank A/c Dr.   27,600  
  Calls in arrears A/c Dr.   6,900  
  To Share allotment A/c     34,500
  (Being amount received on allotment)      
         
E) Share first Call A/c Dr.   60,000  
  To Share capital A/c     60,000
  (Being amount due on first call)      
         
F) Bank A/c Dr.   48,000  
  Calls in arrears A/c Dr.   12,000  
  To Share allotment A/c     60,000
  (Being amount received on first call)      
         
G) Share capital A/c Dr.   21,000  
  Securities Premium Reserve A/c Dr.   31,500  
  To Share Forfeited A/c     3,600
  To Calls in Arrears A/c     18,900
  (Being 300 shares fortified)      
         
H) Bank A/c Dr.   18,000  
  Share Fortified A/c Dr.   3,000  
  To Share capital A/c     21,000
  (Being 300 shares reissued)      
         
I) Share Fortified A/c Dr.   600  
  To Capital Reserve A/c     600
  (Being balance in share fortified transferred to capital reserve)      

Working Notes :

Calculation of amount received on allotment  
Excess money Received 360 X 10 3,600
Less : 300 X 10 3,000
Retained 600
   
Allotment money due 300X 25 7,500
Less : Already received 600
Not received 6,900
       
Total Allotment money due      
Less : Not received 6,900    
Less : Received on application 3,000   9,900
Received on allotment     27,600

It all about Question 44 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 44 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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