Question 68 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 68 Chapter 8 of +2-A

Table of Contents

The solution of Question 68 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)

68. Commerce publications ltd. Issued 50,000 equity shares of Rs 10 each at a premium of 10 % premium payable as under:

On application	Rs 2
On allotment	Rs 5
on the first call	Rs 2
on final cal	Rs 2

The calls were made by the company and all the money was duly received except the allotment and call money on 500 shares. These shares were, therefore, forfeited and later reissued @Rs 9 per share as fully paid up.
Pass the necessary journal entries to record the above transactions.

The solution of Question 68 Chapter 8 of +2-A: –


Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		1,00,000
	To share application A/c				1,00,000
	(Being the application money received )
	Share application A/c	Dr		1,00,000
	To Share capital A/c				1,00,000
	(Being application money transferred to equity share capital )
	Share allotment A/c	Dr		2,50,000
	To Share capital A/c				2,00,000
	To Securities premium A/c				50,000
	(Being the allotment money due )
	Bank A/c	Dr		2,47,500
	calls in arrear A/c	Dr		2,500
	To Share allotment A/c				2,50,000
	(Being allotment money received )
	Share first call A/c	Dr		1,00,000
	To Share capital A/c				1,00,000
	(Being the first call money due )
	Bank A/c	Dr		99,000
	Calls in arrear A/c	Dr		1,000
	To Share first call A/c				1,00,000
	(Being first call money received )
	Equity share capital A/c	Dr		4,000
	Securities premium A/c	Dr		500
	To Share forfeiture A/c				1,000
	To calls in arrear A/c				3,500
	(Being share forfeited )
	Share final call A/c	Dr		99,000
	To Share capital A/c				99,000
	(Being the final call money due )
	Bank A/c			99,000
	To Share final call A/c				99,000
	(Being final call money received )
	Bank A/c	Dr		4,500
	Share forfeiture A/c	Dr		500
	To calls in arrear A/c				5,000
	(Being forfeited share reissue )
	Forfeited share A/c	Dr		500
	To capital Reserve A/c				500
	(Being the gain on reissue transferred to capital reserve )