Question no 37 Chapter 1 - Unimax Class 12 Part 2

Question No 37 Chapter 1 – Unimax Class 12 Part 2 – 2021

Table of Contents

The solution of Question 37 Chapter 1 of +2 Part-2: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Alok Ltd. forfeited 300 shares of ₹ 10 each, fully called up, help by Ram for non-payment of allotment money of ₹ 3 per shares and final call money of ₹ 4 per shares. Out of these shares 250 were reissued to sham for a total payment of ₹ 2,000. Given journal entries for forfeiture and reissue.

The solution of Question 37 Chapter 1 of +2 Part-2: –

Journal Entries
In the books of M/s Alok Ltd.

Date	Particulars		L.F.	Debit	Credit
	Shares capital A/c	Dr.		3,000
	To Shares forfeited A/c				900
	To Shares allotment A/c				900
	To shares final call A/c				1,200
	(Being 300 shares forfeited due to non-payment of allotment and final call money)
	Bank A/c	Dr.		2,000
	Shares forfeited A/c	Dr.		500
	To Share capital A/c				2500
	(Being 250 forfeited shares reissued as fully paid for ₹ 2000)
	Shares forfeited A/c	Dr.		250
	To Capital reserve A/c				250
	(Being profit on 250 forfeited shares transferred to capital reserve A/c)

Working Note:

1. Calculate of amount transferred to capital reserve A/c

Amount forfeited on 300 shares	= ₹ 900
Amount forfeited on 250 shares	=₹ 900/300 x 250 = 750
Less: Discount allowed on reissued shares	= ₹ 500
Balance creditors to capital reserve A/c	= 250