Question 76 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 76 Chapter 8 of +2-A

Table of Contents

The solution of Question 76 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)

76. Alfa Ltd. invited applications for issuing 75,000 equity shares of ₹ 10 each. The amount was payable as follows::

On application and allotment	—	₹ 4 per share,
On the first Call	—	₹ 3 per share,
On second and final Call	—	balance.

Applications for 1,00,000 shares were received. Shares were allotted to all the applicants on a pro-rata basis and excess money received with applications was transferred towards sums due on the first call. Vibha who was allotted 750 shares failed to pay the first call. Her shares were immediately forfeited. Afterwards, the second call was made. The amount due on the second call was also received except on 1,000 shares applied by Monika. Her shares were also forfeited. All the forfeited shares were reissued to Mohit for ₹9,000 as fully paid-up.
Pass necessary journal entries in the Books of Alfa Ltd . for the above transactions.

The solution of Question 76 Chapter 8 of +2-A: –


Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		4,00,000
	To share application allotment A/c				4,00,000
	(Being the application allotment money received )
	Share application and allotment A/c	Dr		4,00,000
	To Share capital A/c				3,00,000
	To share first call A/c				1,00,000
	(Being application and allotment money transferred to equity share capital )
	Share first call A/c	Dr		2,25,000
	To Share capital A/c				2,25,000
	(Being the allotment money due )
	Bank A/c	Dr		1,23,750
	To Share first call A/c				1,23,750
	(Being first call money received )
	Equity share capital A/c	Dr		5,250
	To Equity share first, call A/c				4,000
	To Shares forfeited A/c				1,250
	(Being share forfeiture)
	Share the second call A/c	Dr		2,22750
	To Share capital A/c				2,22750
	Bank A/c	Dr		2,20,500
	To Share second and final call A/c				2,20,500
	(Being second and final call money received )
	Equity share capital A/c	Dr		7,500
	To Equity share second call A/c				2,250
	To Shares forfeited A/c				5,250
	(Being forfeited share reissue )
	Bank A/c	Dr		9,000
	Share forfeiture A/c	Dr		6,000
	To Equity share capital A/c				15,000
	(Being the gain on reissue transferred to capital reserve )
	Forfeited share A/c	Dr		3,250
	To capital Reserve A/c				3,250
	(Being the gain on reissue transferred to capital reserve )

Calculation of not received (First Call Money)

Shares applied by Vibha =	1,00,000	*750 = 1,000 shares
	75,000

Amount received on 1,000 shares of Rs.4 each = Rs.4,000
Amount transferred to Share Capital Account (750 × Rs.4) = Rs.3,000
Excess money received on application and allotment = Rs.1,000
Amount due on First call @ Rs.3 each = Rs.2,250
Amount not received on first call money (Rs.2,250 – Rs.1,000) = Rs.1,250

Please Like and share with your friends

Comment if you have any question.

Also, Check out the solved question of previous Chapters: –