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

Question 53 Chapter 8 of +2-Part-1

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The solution of Question 53 Chapter 8 of +2 Part-1: –

53. (Prorata Allotment/Forfeiture/Reissue) XYZ Ltd. invited application for 2,00,000 equity shares of Rs. 10 each. The amount was payable as follows:
On Application Rs. 3 per share
On Allotment RS. 5 per share
On First and final call Rs. 2 per share.
Application for 3,00,000 shares were received and pro-rata allotment was made to all the applicants on the following basis:
Applications for 2,00,000 shares were allotted 1,50,000 shares on prorata basis. Application for 1,00,000 shares were allotted 50,000 shares on pro-rata basis. Bajaj, who was allotted 3,000 shares out of the group applying for 2,00,000 shares, failed today the allotment money. His shares were forfeited immediately after allotment.
Sharma who had applied for 2,000 shares out of the group applying for 1,00,000 shares failed to pay the first and final call. His shares were also forfeited.
Out of the forfeited shares 3,500 shares were reissued as fully paid up @ Rs. 8 per share.
The reissued shares included all the forfeited shares to Bajaj.
Pass the necessary journal entries to record the above transactions,

The solution of Question 53 Chapter 8 of +2 Part-1: –

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

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Journal

Date	Particulars		L.F.	Debit	Credit
A	Bank A/c(3,00,000 X 3)	Dr.		9,00,000
	To Share Application A/c				9,00,000
	(Being the receipt of application money)

B	Share Application A/c	Dr.		9,00,000
	To Share capital A/c				6,00,000
	To Share allotment A/c				3,00,000
	(Being pro rata allotment made )

C	Share allotment A/c	Dr.		10,00,000
	To Share capital A/c				10,00,000
	(Being amount due on allotment )

D	Bank A/c	Dr.		6,88,000
	Calls in arrears A/c	Dr.		12,000
	To Share allotment A/c				7,00,000
	(Being amount received on allotment)

E	Share capital A/c	Dr.		24,000
	To Share Forfeited A/c				12,000
	To Calls in Arrears A/c				12,000
	(Being 3,000 shares fortified)

F	Share final Call A/c	Dr.		3,94,000
	To Share capital A/c				3,94,000
	(Being amount due on final call)

G	Bank A/c	Dr.		3,92,000
	Calls in arrears A/c	Dr.		2,000
	To Share Final call A/c				3,94,000
	(Being amount received on allotment )

H)	Share capital A/c	Dr.		10,000
	To Share Forfeited A/c				8,000
	To Calls in Arrears A/c				2,000
	(Being 1,000 shares fortified)

I)	Bank A/c	Dr.		28,000
	Share Fortified A/c	Dr.		7,000
	To Share capital A/c				35,000
	(Being3,500 shares reissued)

J)	Share Fortified A/c	Dr.		9,000
	To Capital Reserve A/c				9,000
	(Being balance in share fortified transferred to capital reserve)

Working Notes:

1. Amount received on allotment

Shares applied by Bajaj = 2,00,000/1,50,000 X 3,000= 4,000 shares
Application money received from Bajaj (4,000 X 3)	12,000
Less : Adjusted (3,000 X 3)	9,000
Retained for allotment	2,500

Allotment money due from Bajaj (3,000 X 5)	15,000
Less : Already received	3,000
Not received on allotment	6,000

Total Allotment money due	10,00,000
Less : Already received	3,00,000
	7,00,000
Less : Already received on Bajaj Share	12,000
Not received on allotment	6,88,000

2. Amount transferred to capital reserve

Shares forfeited amount on 3,000 shares	12,000
Add: proportionate Shares forfeited on 500 shares which = 8,000/1,000 X 500	4,000
	16,000
Less : loss on reissue	7,000
Transferred to Capital reserve	9,000

3. Shares allotted to Sharma

Shares applied by Sharma ( category ii) 2,000

Shares allotted to Sharma = 50,000/1,00,000 X 2,000 = 1,000 shares

It all about Question 53 Chapter 8 of +2-Part-1, If you have any problem please comment below.

Forfeiture of shares – Its accounting Entries

End of Solution

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

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

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

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

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

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

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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

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