Question 48 Chapter 8 of +2-A
Table of Contents
48. Sunshine ltd. Issued 20,000 shares of Rs 100 each payable Rs 25 per share on the application , Rs 25 per share on the allotment and the balance in two calls of Rs 25 each. The company did not make the final call of Rs 25 per share. All the money was duly received with the exception of the amount due on the first call on 400 shares held by MR.MODI. The board of directors forfeited these shares and subsequently reissued them @Rs 75 per share paid-up for a sum of Rs 28,000.
The solution of Question 48 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 | 2,40,000 | |||
| Calls in arrear A/c | Dr | 10,000 | |||
| To Share first call A/c | 2,50,000 | ||||
| (Being first call money received ) | |||||
| Share capital A/c | Dr | 30,000 | |||
| To Share first call A/c | 10,000 | ||||
| To forfeited shares A/c | 20,000 | ||||
| (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 share forfeited ) | |||||
| Bank A/c | Dr | 28,000 | |||
| Share forfeiture A/c | Dr | 2,000 | |||
| To Share capital A/c | 30,000 | ||||
| (Being forfeited share reissue ) | |||||
| Forfeited share A/c | Dr | 18,000 | |||
| To capital Reserve A/c | 18,000 | ||||
| (Being the gain on reissue transferred to capital reserve ) | |||||
| Particulars |
Details | Amount | |
| Calculation of capital reserve | |||
| Share Forfeiture (Cr.) | 20,000 | ||
| Less: Share Forfeiture Debit | (2,000) | ||
| Balance in Share Forfeiture A/c | 18,000 | ||
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Also, Check out the solved question of previous Chapters: –
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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