Question 58 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 58 Chapter 8 of +2-A – T.S. Grewal 12 Class

By Shubham Sharma 10 Min Read December 20, 2020

Question No.58. - Chapter No.8 - T.S. Grewal +2 Book 2019-Solution-min-min

Question 58 Chapter 8 of +2-A

Table of Contents

The solution of Question 58 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)

58. Software ltd company with registered capital of Rs 5,00,000 in shares of Rs 10 each issued 20,000 of such shares payable Rs 2 on the application , Rs 4 on allotment Rs 2 on final call. All the money payable on the allotment was duly received but on the first call being made, one shareholder paid the entire balance on his holding of 300 shares and five shareholders paid the entire balance on his holding of 300 shares and five shareholders with a total holding of 1,000 shares failed to pay their dues on the first call. These shares were forfeited for non-payment of first call money. The final call was made and all the money. The final call was made and all the money due was received. Later on, forfeited shares were reissued @Rs 6 per share as fully paid-up.
Record the above in the company ‘s journal and prepare the balance sheet.

The solution of Question 58 Chapter 8 of +2-A: –


Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		40,000
	To share application A/c				40,000
	(Being the application money received )
	Share application A/c	Dr		40,000
	To Share capital A/c				40,000
	(Being application money transferred to equity share capital )
	Share allotment A/c	Dr		80,000
	To Share capital A/c				80,000
	(Being the allotment money due )
	Bank A/c	Dr		80,000
	To Share allotment A/c				80,000
	(Being application money transferred to equity share capital )
	Share first call A/c	Dr		40,000
	To Share capital A/c				40,000
	(Being the first call money due )
	Bank A/c	Dr		38,600
	Calls in arrear A/c	Dr		2,000
	To Share first call A/c				40,000
	To Calls in advance A/c				600
	(Being first call money received )
	Share capital A/c	Dr		8,000
	To calls in arrear A/c				6,000
	To forfeited shares A/c				2,000
	(Being share forfeited )
	Share final call A/c	Dr		38,000
	To Share capital A/c				38,000
	(Being the final call money due )
	Bank A/c	Dr		37,400
	Calls in arrear A/c	Dr		600
	To Share final call A/c				38,000
	(Being final call money received )
	Bank A/c	Dr		6,000
	Share forfeiture A/c	Dr		4,000
	To Share capital A/c				10,000
	(Being forfeited share reissue )
	Forfeited share A/c	Dr		2,000
	To capital Reserve A/c				2,000
	(Being the gain on reissue transferred to capital reserve )

Particulars	Details	Amount
I. Equity and Liabilities
1. Shareholders’ Funds
(a) Share Capital		2,00,000
(b) Reserves and Surplus		2,000
(c) Money Received against Share Warrants
2. Share Application Money Pending Allotment
3. Non-Current Liabilities
4. Current Liabilities

II. Assets
1.Non-Current Assets
2. Current Assets
(d) Cash and Cash equivalents		2,02,000
Total		2,02,000

Particulars	Details	Amount
Share capital
Authorized capital
50,000 Equity share of Rs 10each		5,00,000
Issued capital
20,000 equity shares of Rs 10 each		2,00,000
Subscribed capital
Subscribed and fully paid-up
20,000 Equity shares of Rs 10 each		2,00,000
Capital reserve		2,000
Cash at bank		2,02,000

Calculation of capital reserve
Particulars	Details	Amount
Total Share Forfeiture (Cr.)		6,000
(Total share forfeiture Cr. =100+600+1800=2500 )

Less: Share Forfeiture Debit		(4,000)

Balance in Share Forfeiture A/c		2,000