Question no 43 Chapter 1 - Unimax Class 12 Part 2

Question No 43 Chapter 1 – Unimax Class 12 Part 2 – 2021

Table of Contents

The solution of Question 43 Chapter 1 of +2 Part-2: –

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

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

Guru limited issued 1,000 shares of ₹ 100 each. All the money were received except for 100 shares on which ₹ 90 was received per share. These 100 shares were forfeited and 50 shares were reissued forfeited and 50 shares were reissued for ₹ 80 each fully paid up.
Show the forfeited shares account and the balance sheet as at closing date.

The solution of Question 43 Chapter 1 of +2 Part-2: –

Particulars	Amount	Particulars	Amount
To Share capital A/c (50*20)	1,000	By share capital A/c (100*90)	9,000
To capital reserve A/c (50*70)	3,500
To Balance c/d	4,500

Total	9,000		9,000

Balance Sheet
As At ………

Particulars	Note No.	Amount ₹
Equity and Liabilities
(A) Shareholder’s funds
(1) share capital	1	99,500
(2) reserve and surplus	2	3,500
		1,03,000

Assets
(A) Current Assets
(1) Cash & Cash equivalents	3	1,03,000
		1,03,000

Note to Amounts

Particulars	₹
1 share capital
Authorized capital
…….. equity share of @ ₹ 100 each	………
Issued capital:
1,000 Equity shares ₹ 100 each	1,00,000
Subscribed capital
Subscribed and fully paid up
950 equity shares @ 100 each	95,000
Add forfeited shares (9,000-4,500)	4,500
	99,500
2 Reserve and Surplus
Capital reserve	3,500
3 Cash & Cash Equivalents
Cash at bank	1,03,000

Working Note: 1

Journal entries on forfeiture and reissue:

Shares capital A/c (100*100)	Dr.	10,000
To calls in arrears A/c (100*10)			1,000
To shares forfeited A/c (100*90)			9,000
Bank A/c (50*80)	Dr.	4,000
Shares forfeited A/c (50*20)	Dr.	1,000
To shares capital A/c (50*100)			5,000
Working Note: 2
Shares forfeited A/c	Dr.	3,500
To capital reserve A/c			3,500
9,000*50/100 = 4,500-1,000