Question 64 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 64 Chapter 8 of +2-A

Table of Contents

The solution of Question 64 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)

64. The Directors of a company forfeited 300 shares of ₹ 10 each issued at a premium of ₹ 3 per share, for the non-payment of the first call money of ₹ 2 per share. The final call of ₹ 2 per share has not been made. Half the forfeited shares were reissued at ₹ 1,500 as fully paid-up. Record the journal entries for the forfeiture and reissue of shares.

The solution of Question 64 Chapter 8 of +2-A: –


Date	Particulars		L.F.	Debit	Credit
	Share capital A/c	Dr		2,400
	To Share calls in arrear A/c				600
	To forfeited shares A/c				1800
	(Being share forfeited )
	Bank A/c	Dr		1,500
	To Share capital A/c				1,500
	(Being forfeited share reissue )
	Forfeited share A/c	Dr		900
	To capital Reserve A/c				900
	(Being the gain on reissue transferred to capital reserve )

Particulars	Details	Amount
Calculation of capital reserve


Share Forfeiture (Cr.)	900
Less: Share Forfeiture Debit	(-)


Balance in Share Forfeiture A/c		900