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

Q-52 - CH-8 - Usha +2 Book 2018 - Solution-min
Q-52 - CH-8 - Usha +2 Book 2018 - Solution-min

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Question 52 Chapter 8 of +2-Part-1

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52. (Prorata Allotment/Forfeiture/Reissue) Delhi Software Company issued prospectus inviting applications for 4,00,000 shares of Rs. 10 each at a premium of Rs. 2 per share payable as follows :
On application Rs. 3, on allotment Rs. 4 (including premium): on first call Rs. 3 and on second call Rs. 2
Applications were received for 6,00,000 shares and allotment was made prorata basis. Money overpaid on applications was employed on allotment.
Mohit who was allotted 800 shares failed to pay allotment money on his subsequent failure. to pay first call his shares were forfeited, Pradeep, the holder of 1200 shares failed to pay two calls and his shares were forfeited after second call. Of the shares forfeited, 1600 shares were sold to Pragati at Rs. 9, fully paid up, the whole to Mohit’s share being included.
Prepare Journal and Balance Sheet

The solution of Question 52 Chapter 8 of +2 Part-1: –

Day 184 Solution of Questions 52 53 54 Share Capital Chapter 8 Accounts Part B class 12 PSEB

Journal

Date  Particulars
L.F.DebitCredit
ABank A/c( 6,00,000 X 3)Dr. 18,00,000 
 To Share Application A/c   18,00,000
 (Being the receipt of application money)    
      
BShare Application A/cDr. 18,00,000 
 To Share capital A/c  12,00,000
 To Share allotment A/c  6,00,000
 (Being pro rata allotment made )    
      
CShare allotment A/cDr. 16,00,000 
 To Share capital A/c  8,00,000
 To Secruity Premium A/c  8,00,000
 (Being amount due on allotment )    
     
DBank A/cDr. 9,98,000 
 Calls in arrears A/cDr. 2,000 
 To Share allotment A/c  10,00,000
 (Being amount received on allotment exception of 800 shares )   
     
EShare first Call A/cDr. 12,00,000 
 To Share capital A/c  12,00,000
 (Being amount due on first call )   
     
FBank A/cDr. 11,94,000 
 Calls in arrears A/cDr. 6,000 
 To Share first call A/c  12,00,000
 (Being amount received on first call exception of 2,000 shares )   
     
GShare capital A/cDr. 6,400 
 Secruity Premium A/cDr. 1,600 
 To Share Forfeited A/c  3,600
 To Calls in Arrears A/c  4,400
 (Being 800 shares fortified)   
     
H)Share Second & final Call A/cDr. 7,98,400 
 To Share capital A/c  7,98,400
 (Being amount due on final call)   
     
I)Bank A/cDr. 7,96,200 
 Calls in arrears A/cDr. 2,400 
 To Share second & Final call A/c  7,98,400
 (Being amount received on allotment )   
     
J)Share capital A/cDr. 12,000 
 To Share Forfeited A/c  6,000
 To Calls in Arrears A/c  6,000
 (Being 1,200 shares fortified)   
     
K)Bank A/cDr. 14,400 
 Share Fortified A/cDr. 1,600 
 To Share capital A/c  16,000
 (Being 1,600 shares reissued)   
     
L)Share Fortified A/cDr. 6,000 
 To Capital Reserve A/c  6,000
 (Being balance in share fortified transferred to capital reserve)   

Balance Sheet Schedule III (Part I)

Particulars

Note no/.

FIG. RELATING TO CURRENT REPORTNG PERIOD FIG. RELATING TO PREVIOUS REPORTNG PERIOD
i) Equity & Liability   
Shareholders fund   
Share Capital139,98,000 
Reserve & Surplus28,04,400 
Non current Liabilities3  
Current Liabilities4  
Total 48,02,400 
    
ii) Assets   
Non -Current Assets   
    
Current Assets   
Cash & Cash equivalent 48,02,400 
Cash at bank   
Total 48,02,400 

Working Notes:

Amount transferred to capital reserve

Shares forfeited – Mohit’s shares3,600
Add: Shares forfeited – Pradeep’s 300 shares which are reissued = 6,000/1,200 X 8004,000
Retained for call 2,500
  
 7,600
Less : loss on reissue of 1,600 shares1,600
Capital reserve 6,000

It all about Question 52 Chapter 8 of +2-Part-1, If you have any problem please comment below.

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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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