Question 50 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part

Question 50 Chapter 8 of +2-Part-1

50. (Issue at premium/Pro-rata Allotment/Forfeiture/Re-issue) A applications for the subscription of 2,00,000 equity shares of Rs. 10 each, payable as Rs. 2.50 per share on application by 31st January, 2018, Rs. 5 (including premium) on allotment by 28February, 2018, and Rs. 5 on first and final call by 30th June, 2018.
The company received applications for 2,50,000 shares. It was decided :
(i) to refuse allotment to applicants for 10,000 shares,
(ii) to allot in full to the applicants for 40,000 shares,
(iii) to allot the balance of the available shares prorata among the other applicants, and
(iv) to utilize the excess application money in part payment of allotment moneys. One applicant to whom shares were allotted in full, did not pay the amount due on call his 200 shares were forfeited. These shares were reissued on 31st October, 2018 at Rs. 9, fully paid.
Give journal entries to record the above.

The solution of Question 50 Chapter 8 of +2 Part-1: –

Day 183 Solution of Questions 50 & 51 Share Capital Chapter 8 Accounts Part B class 12 PSEB

Watch this video on YouTube.

1 . Proportion of pro rata allotment

Application Received	Shares Allotted	Total
10,000	10,000	Rejected
40,000	40,000	Full Allotment
2,00,000	1,60,000	Pro rata Allotment
2,50,000	2,00,000

Hence Proportion of pro rata allotment is 20:16 or 5:4

2. Amount credited to capital reserve is arrived at as follows

	Rs.
Total Amount forfeited	1,000
Less : discount on the reissue of forfeited shares	200
Profit on the reissue of forfeited shares	800

Journal

Date	Particulars		L.F.	Debit	Credit
2018
Jan 31	Bank A/c (2,50,000 X 2.5)	Dr.		6,25,000
	To Equity Share Application A/c				6,25,000
	(Being the receipt of application money on 2,50,000 shares @ Rs. 2.5 per share )

Jan 31	Equity Share Application A/c	Dr.		5,00,000
	To Equity Share capital A/c (2,00,000 X 2.5)				5,00,000
	(Being transfer of application money on 2,00,000 shares allotted to shares cap. A/c)

Jan 31	Equity Share Application A/c (10,000 X 2.5)	Dr.		25,000
	To Bank A/c				25,000
	(Being the refund of app. Money on 10,000 share rejected )

Jan 31	Equity Share Application A/c	Dr.		1,00,000
	To Equity Share capital A/c				1,00,000
	(Being excess of app. Money adjusted towards allotment A/c )

Feb 28	Equity Share Application A/c (2,00,000 X 5)	Dr.		10,00,000
	To Equity Share capital A/c (2,00,000 X 2.5)				5,00,000
	To Securities Premium Reserve A/c(2,00,000 X 2.5)				5,00,000
	(Being allotment money due on 2,00,000 shares @ Rs. 5 each including premium Rs. 2.5 per share)

Feb 28	Bank A/c	Dr.		9,00,000
	To Equity Share final Call A/c				9,00,000
	(Being amount received on allotment )

June 30	Equity Share First & final Call A/c	Dr.		10,00,000
	To Equity Share capital A/c				10,00,000
	(Being amount due on A/c of the first & Final call on 2,00,000 shares @ Rs. 5 per share)

June 30	Bank A/c	Dr.		9,99,000
	To Equity Share First & final Call A/c				9,99,000
	(Being amount received on A/c of the first & Final call on 1,99,800 shares @ Rs. 5 per share)

Oct 31	Equity Share capital A/c	Dr.		2,000
	To Share Forfeited A/c				1,000
	To Equity Share First & final Call A/c				1,000
	(Being forfeiture of 200 shares of Rs. 10 each issued at premium of Rs. 2.5 each fully called up on A/c of the non payment of First & final call )

Oct 31	Bank A/c	Dr.		1,800
	Share Forfeited A/c	Dr.		200
	To Equity Share Capital A/c				2,000
	(Being reissue of 200 shares @ Rs. 9 per share issued as fully paid up )

Oct 31	Share Forfeited A/c	Dr.		800
	To Equity Share Capital A/c				800
	(Being the profit on reissue of 200 shares transferred to cap.. A/c

It all about Question 50 Chapter 8 of +2-Part-1, If you have any problem please comment below.

Forfeiture of shares – Its accounting Entries

End of Solution

Check Out the Solution of all questions of this chapter:

The solution to all questions of Chapter No. 8 – Company Accounts (Share Capital) Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.

Question 01 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Advertisement-X

Question 02 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 03 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 04 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 05 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 06 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 07 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 08 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 09 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 10 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 11 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Advertisement-X

Advertisement-Y

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

Question 13 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 14 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 15 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 16 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 17 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 18 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 19 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 19 A Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 19 B Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Advertisement-X

Question 19 C Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 19D Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 20 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 21 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 22 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Advertisement-Y

Question 23 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 24 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 25 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 26 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 46 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Advertisement-X

Question 27 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 28 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 29 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 30 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 31 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 32 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 33 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 34 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 35 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 36 Chapter 8 of +2-Part-1 – USHA Publication

Advertisement-X

Advertisement-Y

Question 3 Chapter 8 of +2-Part-1 – USHA Publication

Question 38 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 39 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 40 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 41 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 42 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 43 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 44 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 45 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

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

Advertisement-X

Question 48 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

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

Question 50 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 51 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 52 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Advertisement-Y

Question 53 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Thanks for completing the chapter. If you understand the question or we have helped you with your homework, please share our website on your social media. We are delighted to help you out.

Thanks again.

End of Post

Download a PDF of Chapter No. 8 – Company Accounts (Share Capital):

If you want to download a PDF of this chapter then you can do it. Check out our PDF file on our Store page.

Advertisement-X

Download Now From our Store

Chapter-Wise Solution of Usha Publication Accountancy – Part 2 Class 12 – Session 2024-25 as per the PSEB curriculum

Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 2 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.

Chapter No. 8 – Company Accounts (Share Capital)

Chapter No. 9 – Company Accounts (Issue of Debentures)

Chapter No. 10 – Company Accounts (Redemption of Debentures)

Chapter No. 11 – Financial Statements of a Company

Chapter No. 12 – Financial Statement Analysis

Chapter No. 13 – Tools of Financial Statement Analysis- Comparative and Common Size

Chapter No. 14 – Accounting Ratios

Chapter No. 15 – Cash Flow Statement

Advertisement-X

Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 2 Class 12 by Unimax Publication

Check out Part 1 of both books.

In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 1, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 1 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.

1. Accountancy – Part 1 Class 12 – Session 2024-25 By Usha Publication