Question 55 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 55 Chapter 8 of +2-A – T.S. Grewal 12 Class

By Shubham Sharma 7 Min Read December 20, 2020

Question No.55. - Chapter No.8 - T.S. Grewal +2 Book 2019-Solution-min-min

Question 55 Chapter 8 of +2-A

Table of Contents

The solution of Question 55 Chapter 8 of +2-A: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

55. Record the journal entries for feature and reissue of shares in the following cases.

Basak ltd. forfeited 20 shares of Rs 10 each, 7 called upon which the shareholders had paid application and allotment money of Rs 5 per share. Out of these, 15 shares were reissued to Naresh as Rs 7 per share paid up for Rs 8 per share.
Ltd. Forfeited 90 shares of 10 each, Rs 8 called up issued at a premium of Rs 2 per share to ‘R” for non-payment of allotment money of Rs 5 per share (including premium). Out of these, 80 shares were reissued to Sanjay as Rs 8 called-up for Rs 10 per share.

The solution of Question 55 Chapter 8 of +2-A: –

	I
Date	Particulars		L.F.	Debit	Credit
	Share capital A/c	Dr		140
	To Share second and final call A/c				100
	To forfeited shares A/c				40
	(Being share forfeited )
	Bank A/c	Dr		120
	To Share capital A/c				105
	To Share capital premium A/c				15
	(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 )

	II
Date	Particulars		L.F.	Debit	Credit
	Share capital A/c	Dr		720
	Securitas premium A/c	Dr		180
	To Share second and final call A/c				450
	To forfeited shares A/c				450
	(Being share forfeited )
	Bank A/c	Dr		800
	To Share capital A/c				640
	To securities premium A/c				160
	(Being forfeited share reissue )
	Forfeited share A/c	Dr		400
	To capital Reserve A/c				400
	(Being the gain on reissue transferred to capital reserve )

Working Note.1 –
Profit on forfeiture of 20 shares = 100
Profit on forfeiture of 15 shares=100/20*15=75
(Note) Capital Reserve = share forfeiture Cr – share forfeiture Dr =75-0 = 75
Working Note.2 –
Profit on forfeiture of 90 shares = 450
Profit on forfeiture of 80 shares=450/90*80=400
(Note) Capital Reserve = share forfeiture Cr – share forfeiture Dr =400-0 = 400

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