Question 54 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 54 Chapter 8 of +2-A – T.S. Grewal 12 Class

By Shubham Sharma 8 Min Read December 20, 2020

Question No.54. - Chapter No.8 - T.S. Grewal +2 Book 2019-Solution-min-min

Question 54 Chapter 8 of +2-A

Table of Contents

54. Show the forfeiture and reissue entries under each of the following cases :

X ltd. Forfeited 300 shares of 10 each, Rs 8 called –upheld by Mr A for non-payment of second call money of Rs 3 per share .these share were reissued to Mr Z for Rs 10 per share as fully paid-up.
Y ltd. Forfeited 400 shares of 10 each, fully called-up, held by Mr B for non-payment of final money of Rs 4 per share. These shares were reissued to Mr T at Rs 12 per share as fully paid –up.
Light ltd. Forfeited 250 shares of Rs 10 each, fully called-up, held by Mr. for non-payment of allotment money of Rs 3 per share and first and final call money of Rs 4 per share. These shares were reissued @ Rs 8 per share as fully paid-up to Mr.P.

	I
Date	Particulars		L.F.	Debit	Credit
	Share capital A/c	Dr		2,400
	To Share second and final call A/c				1,500
	To forfeited shares A/c				900
	(Being share forfeited )
	Bank A/c	Dr		3,000
	To Share capital A/c				3,000
	(Being forfeited share reissue )
	Forfeited share A/c	Dr		1,500
	To capital Reserve A/c				1,500
	(Being the gain on reissue transferred to capital reserve )

(Note) Capital Reserve = share forfeiture Cr – share forfeiture Dr =1500-0 = 1500

	II
Date	Particulars		L.F.	Debit	Credit
	Share capital A/c	Dr		4,000
	To Share second and final call A/c				2,400
	To forfeited shares A/c				1,600
	(Being share forfeited )
	Bank A/c	Dr		4,800
	To Share capital A/c				4,000
	To securities premium A/c				800
	(Being forfeited share reissue )
	Forfeited share A/c	Dr		2,400
	To capital Reserve A/c				2,400
	(Being the gain on reissue transferred to capital reserve )

(Note) Capital Reserve = share forfeiture Cr – share forfeiture Dr =2400-0 = 2400

	III
Date	Particulars		L.F.	Debit	Credit
	Share capital A/c	Dr		2,500
	To Share second and final call A/c				750
	To forfeited shares A/c				1,750
	(Being share forfeited )
	Bank A/c	Dr		2,000
	Share forfeiture A/c	Dr		500
	To Share capital A/c				2,500
	(Being forfeited share reissue )
	Forfeited share A/c	Dr		250
	To capital Reserve A/c				250
	(Being the gain on reissue transferred to capital reserve )