Question 53 Chapter 8 of +2-A
Table of Contents
53. Give necessary journal entries.
- The directors of Devendra ltd. Resolved on 1st January 2010 that 100 equity share of 10 each, Rs 8 paid-up be forfeited for non-payment of final call of Rs 2. On 1st February,60 of these shares were reissued @Rs 7 per share fully paid-up.
- Virender limited forfeited 20 shares of 100 each ( Rs 60 called-up) issued at par to Mukesh on which he had paid Rs 20 per share. Out of these,15 shares were reissued to Sanjeev as Rs 60 paid up for 45 per share.
The solution of Question 53 Chapter 8 of +2-A: –
| Date | Particulars |
L.F. | Debit | Credit | |
| Share capital A/c | Dr | 1000 | |||
| To Share second and final call A/c | 200 | ||||
| To forfeited shares A/c | 800 | ||||
| (Being share forfeited ) | |||||
| Bank A/c | Dr | 420 | |||
| Share forfeiture A/c | Dr | 180 | |||
| To Share capital A/c | 600 | ||||
| (Being forfeited share reissue ) | |||||
| Forfeited share A/c | Dr | 300 | |||
| To capital Reserve A/c | 300 | ||||
| (Being the gain on reissue transferred to capital reserve ) | |||||
| Particulars |
Details | Amount | |
| Calculation of capital reserve | |||
| Share Forfeiture (Cr.) | 480 | ||
| Less: Share Forfeiture Debit | (180) | ||
| Balance in Share Forfeiture A/c | 300 | ||
(Note) Capital Reserve:
= Balance in Share Forfeiture after re-issue per share × Number of Shares reissued
=Rs.5 × 60 = Rs.300
| Date | Particulars |
L.F. | Debit | Credit | |
| Share capital A/c | Dr | 1200 | |||
| To Share second and final call A/c | 800 | ||||
| To forfeited shares A/c | 400 | ||||
| (Being share forfeited ) | |||||
| Bank A/c | Dr | 675 | |||
| Share forfeiture A/c | Dr | 225 | |||
| To Share capital A/c | 900 | ||||
| (Being forfeited share reissue ) | |||||
| Forfeited share A/c | Dr | 75 | |||
| To capital Reserve A/c | 75 | ||||
| (Being the gain on reissue transferred to capital reserve ) | |||||
| Particulars |
Details | Amount | |
| Calculation of capital reserve | |||
| Share Forfeiture (Cr.) | 300 | ||
| Less: Share Forfeiture Debit | (225) | ||
| Balance in Share Forfeiture A/c | 75 | ||
(Note) Capital Reserve:
= Balance in Share Forfeiture after re-issue per share × Number of Shares reissued
=Rs.5 × 15 = Rs. 75
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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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