Question 79 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 79 Chapter 8 of +2-A

Table of Contents

The solution of Question 79 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)

Dogra Ltd. had an authorized capital of ₹ 1,00,00,000 divided into Equity Shares of ₹ 100 each. The company offered 84,000 shares to the public at a premium. The amount was payable as follow:

On Application	——	₹ 30 per share,
On Allotment	——	₹ 40 per share(including premium),
On First and Final call	——	₹ 50 per share

Applications were received for 80,000 shares.All sums were duly received except the following:
Lakhan, a holder of 200 shares did not pay allotment and call money.
Paras, a holder of 400 shares did not pay call money.
The company forfeited the shares of Lakhan and Paras. Subsequently, the forfeited shares were reissued for ₹ 80 per share as fully paid-up. Show the entries for the above transactions in the Cash Book and journal of the company.

The solution of Question 79 Chapter 8 of +2-A: –

Date	Particulars		L.F.	Debit	Credit
	Share application A/c	Dr		24,00,000
	To Share capital A/c				24,00,000
	(Being application money transferred to equity share capital )

	Share allotment A/c	Dr		32,00,000
	To Share capital A/c				16,00,000
	To Securities premium A/c				16,00,000
	(Being the allotment money due )

	Share First and Final call A/c	Dr		40,00,000
	To Share capital A/c				40,00,000
	(Being share forfeiture)

	Equity share capital A/c	Dr		60,000
	Securities premium reserve A/c	Dr		4,000
	To Share allotment A/c				8,000
	To Share First and Final call A/c				30,000
	To Share forfeiture A/c				26,000
	(Being the allotment money due )
	share forfeiture A/c	Dr		12,000
	To Share Capital A/c				12,000
	(Being forfeited share reissue )
	Share forfeiture A/c	Dr		14,000
	To capital Reserve A/c				14,000
	(Being the gain on reissue transferred to capital reserve )

Cash Book
Date	Particulars	L. F.	Amount	Date	Particulars	L. F.	Amount
	To equity share application a/c		24,00,000
	To equity share allotment a/c		31,92,000
	To equity share first call a/c		39,70,000
	To Equity Share Capital a/c		48,000
					By Balance C/d		96,10,000
			96,10,000				96,10,000