Question 66 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 66 Chapter 8 of +2-A

Table of Contents

The solution of Question 66 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)

66. Pass necessary journal entries in the books of the company for the following transactions:
Vishesh Ltd. forfeited 1,000 Equity Shares of ₹ 10 each issued at a premium of ₹ 2 per share for non-payment of allotment money of ₹ 5 per share including premium. The final call of ₹ 2 per share was not yet called on these shares. Of the forfeited shares, 800 shares were reissued at ₹ 12 per share as fully paid-up.
The remaining shares were reissued at ₹ 11 per share fully paid-up.

The solution of Question 66 Chapter 8 of +2-A: –


Date	Particulars		L.F.	Debit	Credit
	Share capital A/c	Dr		8,000
	Securities Premium A/c	Dr		2,000
	To Share calls in arrear A/c				5,000
	To forfeited shares A/c				5,000
	(Being share forfeited )
	Bank A/c	Dr		9,600
	To Share capital A/c				8,000
	To Share premium A/c				1,600
	(Being forfeited share reissue )
	Bank A/c	Dr		2,200
	To Share capital A/c				2,000
	To Securities premium A/c				200
	(Being forfeited share reissue )
	Forfeited share A/c	Dr		5,000
	To capital Reserve A/c				5,000
	(Being the gain on reissue transferred to capital reserve )