Question 47 Chapter 8 of +2-A
Table of Contents
47. Superstar ltd .make an issue of 10,000 equity shares of 100 each, payable as :
| On application and allotment | RS 50 per share |
| On the first call | Rs 25 per share |
| On the second and final call | Rs 25 per share |
Members holding 400 shares did not pay the second and final call and the share are duly forfeited, 200 of which are reissued as fully paid-up @Rs 50 per share. Pass journal entries in the books of the company .
The solution of Question 47 Chapter 8 of +2-A: –
| Date | Particulars |
L.F. | Debit | Credit | |
| Bank A/c | Dr | 5,00,000 | |||
| To share application A/c | 5,00,000 | ||||
| (Being the application money received ) | |||||
| Share application A/c | Dr | 5,00,000 | |||
| To Share capital A/c | 5,00,000 | ||||
| (Being application money transferred to equity share capital ) | |||||
| Share allotment A/c | Dr | 5,00,000 | |||
| To Share capital A/c | 5,00,000 | ||||
| (Being the allotment money due ) | |||||
| Bank A/c | Dr | 5,00,000 | |||
| To Share allotment A/c | 5,00,000 | ||||
| (Being application money transferred to equity share capital ) | |||||
| Share first call A/c | Dr | 2,50,000 | |||
| To Share capital A/c | 2,50,000 | ||||
| (Being the first call money due ) | |||||
| Bank A/c | Dr | 2,50,000 | |||
| To Share first call A/c | 2,50,000 | ||||
| (Being first call money received ) | |||||
| Share second and final call A/c | Dr | 2,50,000 | |||
| To Share capital A/c | 2,50,000 | ||||
| (Being the second and final call money due ) | |||||
| Bank A/c | Dr | 2,40,000 | |||
| Calls in arrear A/c | Dr | 10,000 | |||
| To Share first call A/c | 2,50,000 | ||||
| (Being second and final call money received ) | |||||
| Share capital A/c | Dr | 40,000 | |||
| To Share second and final call A/c | 10,000 | ||||
| To forfeited shares A/c | 30,000 | ||||
| (Being share forfeited ) | |||||
| Bank A/c | Dr | 10,000 | |||
| Share forfeiture A/c | Dr | 10,000 | |||
| To Share capital A/c | 20,000 | ||||
| (Being forfeited share reissue ) | |||||
| Forfeited share A/c | Dr | 5,000 | |||
| To capital Reserve A/c | 5,000 | ||||
| (Being the gain on reissue transferred to capital reserve ) | |||||
| Particulars |
Details | Amount | |
| Calculation of capital reserve | |||
| Share Forfeiture (Cr.) | 75 | ||
| Less: Share Forfeiture Debit | (50) | ||
| Balance in Share Forfeiture A/c | 25 | ||
(Note) Capital Reserve:
= Balance in Share Forfeiture after re-issue per share × Number of Shares reissued
=Rs.25 × 200 = Rs.5000
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T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
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