Question 60 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 60 Chapter 8 of +2-A – T.S. Grewal 12 Class

By Shubham Sharma 10 Min Read December 20, 2020

Question No.60. - Chapter No.8 - T.S. Grewal +2 Book 2019-Solution-min-min

Question 60 Chapter 8 of +2-A

Table of Contents

The solution of Question 60 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)

60. Slow & Steady Ltd. invited applications for 10,000 Equity Shares of ₹ 10 each for public subscription. The amount of these shares was payable as:On application ₹ 1 per share, on allotment ₹ 2 per share, on first call ₹ 3 per share and on second and final call ₹ 4 per share.All sums payable on application, allotment and calls were duly received with the following exceptions: (i) A, who held 200 shares, failed to pay the money on allotments and calls.(ii) B, to whom 150 shares were allotted, failed to pay the money on first call and final call.(iii) C, who held 50 shares, did not pay the amount of second and final call.The shares of A, B and C were forfeited and were subsequently reissued for cash as fully paid-up at a discount of 5%.Pass necessary Journal entries to record these transactions in the books of X Ltd.

The solution of Question 60 Chapter 8 of +2-A: –

Issued and Applied 10,000 Shares of 10 each
				A		B		C	=	Paid-up Share
Application	Rs.1	(10,000	–						=	10,000)
Allotment	Rs.2	(10,000	–	200	–	150			=	9,800)
First Call	Rs.3	(10,000	–	200	–	150			=	9,650)
Second and Final Call	Rs.4	(10,000	–	200	–	150	–	50	=	9,600)
Called – up	Rs.10


Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		10,000
	To share application A/c				10,000
	(Being the application money received )
	Share application A/c	Dr		10,000
	To Share capital A/c				10,000
	(Being application money transferred to equity share capital )
	Share allotment A/c	Dr		20,000
	To Share capital A/c				20,000
	(Being the allotment money due )
	Bank A/c	Dr		19,600
	calls in arrear A/c	Dr		400
	To Share allotment A/c				20,000
	(Being application money transferred to equity share capital )
	Share first call A/c	Dr		30,000
	To Share capital A/c				30,000
	(Being the first call money due )
	Bank A/c	Dr		28,950
	Calls in arrear A/c	Dr		1,050
	To Share first call A/c				30,000
	(Being first call money received )
	Share final call A/c	Dr		40,000
	To Share capital A/c				40,000
	(Being the final call money due )
	Bank A/c	Dr		38,400
	Calls in arrear A/c	Dr		1,600
	To Share final call A/c				40,000
	(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 )
	Equity share capital A/c	Dr		2,000
	To Share forfeiture A/c				200
	To calls in arrear A/c				1,800
	(Being final call money received )
	Equity share capital A/c	Dr		1,500
	To Share forfeiture A/c				450
	To calls in arrear A/c				1,050
	(Being forfeited share reissue )
	Equity share capital A/c	Dr		500
	To Share forfeiture A/c				300
	To calls in arrear A/c				200
	(Being forfeited share reissue )

Particulars	Details	Amount
Calculation of capital reserve


Share Forfeiture (Cr.)	700
Less: Share Forfeiture Debit	(400)


Balance in Share Forfeiture A/c		300

Calculation of Capital Reserve
= Total Share Forfeiture Cr.(at the time of cancellation of shares) – Total Share Forfeiture Dr.(at the time of re-issues of shares)
= Rs.950 – Rs.200 = Rs.750

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