Advertisement

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

Q-53 - CH-8 - Usha +2 Book 2018 - Solution-min
Q-53 - CH-8 - Usha +2 Book 2018 - Solution-min

Advertisement

Question 53 Chapter 8 of +2-Part-1

Advertisement

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

Journal

Date  Particulars
L.F.DebitCredit
ABank 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)    
      
BShare Application A/cDr. 9,00,000 
 To Share capital A/c  6,00,000
 To Share allotment A/c  3,00,000
 (Being pro rata allotment made )    
      
CShare allotment A/cDr. 10,00,000 
 To Share capital A/c  10,00,000
 (Being amount due on allotment )    
     
DBank A/cDr. 6,88,000 
 Calls in arrears A/cDr. 12,000 
 To Share allotment A/c  7,00,000
 (Being amount received on allotment)   
     
EShare capital A/cDr. 24,000 
 To Share Forfeited A/c  12,000
 To Calls in Arrears A/c  12,000
 (Being 3,000 shares fortified)   
     
FShare final Call A/cDr. 3,94,000 
 To Share capital A/c  3,94,000
 (Being amount due on final call)   
     
GBank A/cDr. 3,92,000 
 Calls in arrears A/cDr. 2,000 
 To Share Final call A/c  3,94,000
 (Being amount received on allotment )   
     
H)Share capital A/cDr. 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/cDr. 28,000 
 Share Fortified A/cDr. 7,000 
 To Share capital A/c  35,000
 (Being3,500 shares reissued)   
     
J)Share Fortified A/cDr. 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 allotment2,500
  
Allotment money due from Bajaj (3,000 X 5)15,000
Less : Already received3,000
Not received on allotment6,000
  
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 shares12,000
Add: proportionate Shares forfeited on 500 shares which = 8,000/1,000 X 5004,000
 16,000
Less : loss on reissue7,000
Transferred to Capital reserve 9,000

3. Shares allotted to Sharma

Advertisement-X

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

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

Advertisement-X

Advertisement

error: Content is protected !!