Question 75 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 75 Chapter 8 of +2-A

Table of Contents

The solution of Question 75 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)

75. Sukanya Ltd. invited applications for issuing 1,00,000 equity shares of ₹ 10 each. The shares were issued at a premium of ₹ 20 per share. The amount was payable as follows::

On Application and Allotment	₹ 14 per share (including a premium of ₹ 10),
On First Call	₹ 8 per share (including a premium of ₹ 5),
On Final Call	₹ 8 per share (including a premium of ₹ 5).

Applications for 96,000 shares were received. Rohit, a shareholder holding 7,000 shares, failed to pay both the calls and Namit, a holder of 5,000 shares, did not pay the final call.Shares of Rohit and Namit were forfeited. Of the forfeited shares, 8,000 shares including all the shares of Rohit were reissued to Reena at ₹ 8 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of Sukanya Ltd.

The solution of Question 75 Chapter 8 of +2-A: –


Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		13,44,000
	To share application allotment A/c				13,44,000
	(Being the application allotment money received )
	Share application and allotment A/c	Dr		13,44,000
	To Share capital A/c				3,84,000
	To Securities premium A/c				9,60,000
	(Being application and allotment money transferred to equity share capital )
	Share first call A/c	Dr		7,68,000
	To Share capital A/c				2,88,000
	To Securities premium A/c				4,80,000
	(Being the allotment money due )
	Bank A/c	Dr		7,12,000
	To Share first call A/c				7,12,000
	(Being first call money received )
	Share the second call A/c	Dr		7,68,000
	To Share forfeiture A/c				2,88,000
	To share allotment A/c				4,80,000
	(Being share forfeiture)
	Bank A/c	Dr		6,72,000
	To Share second and final call A/c				1,99,200
	(Being the first (Being second and final call money received ) call money due )
	Equity share capital A/c	Dr		1,20,000
	Securities premium reserve A/c	Dr		95,000
	To Equity share first, call A/c				56000
	To Equity share second call A/c				96,000
	To Shares forfeited A/c				63,000
	(Being the second and final call money due )
	Bank A/c	Dr		64,000
	Share forfeiture A/c	Dr		16,000
	To Equity share capital A/c				80,000
	(Being forfeited share reissue )
	Forfeited share A/c	Dr		19,000
	To capital Reserve A/c				19,000
	(Being the gain on reissue transferred to capital reserve )