Question no 40 Chapter 1 - Unimax Class 12 Part 2

Question No 40 Chapter 1 – Unimax Class 12 Part 2 – 2021

Table of Contents

The solution of Question 40 Chapter 1 of +2 Part-2 : –

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

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

Pass journal entries for the forfeiture and reissued in the following cases:
1. Kia Ltd. forfeited 600 shares of ₹ 10 each fully called up for non-payment of first call of for ₹ 8 per shares.
2. Riya Ltd. Forfeited 1,000 shares of ₹ 10 each fully paid up, on which the holder has paid only the application money of ₹ 3 per share. Out of these, 600 shares, were reissued at ₹ 11 per shares, fully paid up.
(capital reserve: (1) ₹ 2,400, (2) ₹ 1,800)

The solution of Question 40 Chapter 1 of +2 Part-2 : –

Journal

Date	Particulars		L.F.	Debit	Credit
Case (1)	Shares capital A/c	Dr.		6,000
	To Shares first call A/c				1,200
	To shares final call A/c				1,200
	To Shares Forfeited A/c				3,600
	(Being 600 shares forfeited for non-payment of first & final call)
	Bank A/c	Dr.		4,800
	Shares forfeited A/c	Dr.		1,200
	To Share capital A/c				6,000
	(Being reissued of 600 shares @ 8)
	Shares forfeited A/c	Dr.		2,400
	To Capital reserve A/c				2,400
	(Being transfer of forfeited share account to capital reserve)
Case (2)	Shares capital A/c	Dr.		10,000
	To Call in arrear A/c				7,000
	To shares forfeited A/c				3,000
	(Being 1,000 shares forfeited for non-payment of allotment & final call)
	Bank A/c	Dr.		6,600
	To Share capital A/c				6,000
	To Securities Premium reserve A/c				600
	(Being reissued of 600 shares @ 11)
	Shares forfeited A/c	Dr.		1,800
	To Capital reserve A/c				1,800
	(Being transfer of forfeited share account to capital reserve)

Working Note:

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

Amount forfeited on 600 shares	= (250+900+2250)
	=₹ 3,400
Less: Discount allowed on reissued shares	= ₹ 600
Balance creditors to capital reserve A/c	= ₹ 2,800