Question 47 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Q-47 - CH-8 - Usha +2 Book 2018 - Solution-min
Q-47 - CH-8 - Usha +2 Book 2018 - Solution-min


Question 47 Chapter 8 of +2-Part-1


47. (Prorata Allotment/Forfeiture/Reissue) TCS Ltd. offered at par 10,000 shares of RS. 10 each for public subscription payable as follows:
on application Rs. 3
on allotment Rs. 2
on first call Rs. 3
on final call Rs. 2
Public applied for 13,000 shares. Allotment was made prorata to the applicants of 12,000shares, application money on 1,000 shares being refunded. All the shareholders paid the amount due on allotment except Rakesh, the allotted of 200 shares. His shares were forfeited. First call was then made. Forfeited shares were re-issued @ Rs. 9 per share treated as Rs. 8 per share called up.
You are required to show entries in t he cash book and Journal.

The solution of Question 47 Chapter 8 of +2 Part-1: –


Date  Particulars
A)Share Application A/cDr. 36,000 
 To Share capital A/c   30,000
 To Share allotment A/c   6,000
 (Being allotment made )    
B) Share allotment Call A/cDr. 36,000 
 To Share capital A/c  36,000
 (Being amount due on allotment )    
C)Calls in arrears A/cDr. 280 
 To Share allotment A/c  280
 (Being amount not received on allotment)    
D)Share capital A/cDr. 1,000 
 To Share Forfeited A/c   720
 To Calls in Arrears A/c  280
 (Being 200 shares fortified)   
E)Share first Call A/cDr. 29,400 
 To Share capital A/c  29,400
 (Being amount due on first call)   
F)Share Fortified A/cDr. 720 
 To Capital Reserve A/c  720
 (Being balance in share fortified transferred to capital reserve)   

Cash Book (Bank Column Only)

ParticularsRs. ParticularsRs.
To Share Application A/c39,000By Share Application A/c3,000
To Share Allotment A/c13,200By Balance c/d80,320
To Share First call A/c29,400  
To Share Capital A/c1,600  
To Secruity premium reserve A/c200  
 83,920 83,920

Working Notes :

Amount not received on allotment   
Due from Rakesh 200 X 2  400
Less : Already received   
(240 X 3) – (200X3)  120
Calls in arrears   280
Total amount due  20,000
Less : Excess Received on application6,000  
Less : not received280 6,280

It all about Question 47 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




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