Question 52 Chapter 8 of +2-A
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Video Tag:52. Bee ltd. The company forfeited 100 equity shares of the face value of 10 each, Rs 6 per share called-up, for non-payment of the first call of Rs 2 per share. These forfeited shares were subsequently reissued as fully paid-up @7 each.
Give necessary journal entries relating to forfeiture and reissue of shares.
The solution of Question 52 Chapter 8 of +2-A: –
Date | Particulars |
L.F. | Debit | Credit | |
Share capital A/c | Dr | 600 | |||
To Share second and final call A/c | 400 | ||||
To forfeited shares A/c | 200 | ||||
(Being share forfeited ) | |||||
Bank A/c | Dr | 700 | |||
Share forfeiture A/c | Dr | 300 | |||
To Share capital A/c | 1,000 | ||||
(Being forfeited share reissue ) | |||||
Forfeited share A/c | Dr | 100 | |||
To capital Reserve A/c | 100 | ||||
(Being the gain on reissue transferred to capital reserve ) |
Particulars |
Details | Amount | |
Calculation of capital reserve | |||
Share Forfeiture (Cr.) | 400 | ||
Less: Share Forfeiture Debit | (300) | ||
Balance in Share Forfeiture A/c | 100 |
(Note) Capital Reserve:
= Balance in Share Forfeiture after re-issue per share × Number of Shares reissued
=Rs.4× 70 = Rs.280
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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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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