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Question 49 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Q-49 - CH-8 - Usha +2 Book 2018 - Solution-min
Q-49 - CH-8 - Usha +2 Book 2018 - Solution-min

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Question 49 Chapter 8 of +2-Part-1

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49. (Prorata Allotment/Forfeiture/Reissue)XYZ Limited has been registered with unauthorized capital of Rs. 2,00,000 dividend into 2,000 shares of Rs. 100 each of which, 1,000shares were offered for public subscription at a premium of Rs. 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 1,800 shares, of which applications for 300 shares were rejected outright; the rest of the applications were allotted 1,000 shares on pro-rata basis Excess application money was transferred to allotment.
All the monies were duly received except from Sundar, holder of 100 shares, pay allotment and first call money. His shares were later forfeited, and re-issued who failed to Shyam Rs. 60 per share Rs. 70 paid up. Final Call has not been made.
Pass necessary Cash Book and Journal entries in the books of K Limited.

The solution of Question 49 Chapter 8 of +2 Part-1: –

Day 182 Solution of Questions 49 Share Capital Chapter 8 Accounts Part B class 12 PSEB

Journal

Date  Particulars
L.F.DebitCredit
A)Share Application A/cDr. 15,000 
 To Share capital A/c   10,000
 To Share allotment A/c   5,000
 (Being allotment made )    
      
B) Share allotment A/cDr. 25,000 
 To Share capital A/c  20,000
 To Secruity premium A/c  5,000
 (Being amount due on allotment )    
      
C)Calls in arrears A/cDr. 2,000 
 To Share allotment A/c  2,000
 (Being amount not received on allotment)    
     
D)Share first Call A/cDr. 40,000 
 To Share capital A/c  40,000
 (Being amount due on first call)   
     
E)Call in arrearsDr. 4,000 
 To Share First call A/c  4,000
 (Being first call not received )   
     
F)Share capital A/cDr. 7,000 
 Secruity premium A/cDr. 1500 
 To Share Forfeited A/c  1,500
 To Calls in Arrears A/c  6,000
 (Being first call not received )   
     
G)Share Fortified A/cDr. 1,000 
 To share Capital A/c  1,000
 (Being fortified )   
     
H)Share Fortified A/cDr. 500 
 To Capital Reserve A/c  500
 (Being share fortified transferred )   

Cash Book (Bank Column Only)

ParticularsRs. ParticularsRs.
To Share Application A/c18,000By Share Application A/c3,000
To Share Allotment A/c18,000By Balance c/d75,000
To Share First call A/c36,000  
To Share Capital A/c6,000  
 78,000 78,000

Working Notes :

Amount not received on allotment from Sunder

Amount Due on allotment (100 X 25)  2,500
Less : Amount received in excess on app.   
(150 X 10) – (100X10)  500
Not received  2,000
    
Net amount received on allotment   
Total amount due   
Less : Retained on application5,000  
Less : not received2,000 7,000
Net amount received on allotment  18,000

It all about Question 49 Chapter 8 of +2-Part-1, If you have any problem please comment below.

Forfeiture of shares – Its accounting Entries

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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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