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

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

Question 49 Chapter 8 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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: –

Journal

Date   Particulars
L.F. Debit Credit
A) Share Application A/c Dr.   15,000  
  To Share capital A/c       10,000
  To Share allotment A/c       5,000
  (Being allotment made )        
           
B)  Share allotment Call A/c Dr.   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/c Dr.   2,000  
  To Share allotment A/c     2,000
  (Being amount not received on allotment)        
         
D) Share first Call A/c Dr.   40,000  
  To Share capital A/c     40,000
  (Being amount due on first call)      
         
E) Call in arrears Dr.   4,000  
  To Share First call A/c     4,000
  (Being first call not received )      
         
F) Share capital A/c Dr.   7,000  
  Secruity premium A/c Dr.   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/c Dr.   1,000  
  To share Capital A/c     1,000
  (Being fortified )      
         
H) Share Fortified A/c Dr.   500  
  To Capital Reserve A/c     500
  (Being share fortified transferred )      

Cash Book (Bank Column Only)

Particulars Rs. Particulars Rs.
To Share Application A/c 18,000 By Share Application A/c 3,000
To Share Allotment A/c 18,000 By Balance c/d 75,000
To Share First call A/c 36,000    
To Share Capital A/c 6,000    
  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 application 5,000    
Less : not received 2,000   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

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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