Question no 44 Chapter 1 - Unimax Class 12 Part 2

Question No 44 Chapter 1 – Unimax Class 12 Part 2 – 2021

Table of Contents

The solution of Question 44 Chapter 1 of +2 Part-2: –

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

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

X Ltd. forfeited 100 shares of ₹ 10 each (₹ 8 called up) issued at a premium of ₹ 2 per share to Mr. R, on which he had paid application money of ₹ 5 per shares, for non-payment of allotment money of ₹ 5 per shares (including premium). Out of these, 70 shares were reissued to Mr. Sanjay as ₹ 8 called for ₹ 7 per share. Given necessary journal entries relating to forfeiture and reissue of shares.

The solution of Question 44 Chapter 1 of +2 Part-2: –

Forfeited and reissued of shares
Books of M/S X Ltd. Journal entries

Date	Particulars		L.F.	Debit	Credit
	Equity Shares capital A/c (100*8)	Dr.		800
	Securities Premium A/c (100*2)	Dr.		200
	To Shares allotment A/c (100*5)				500
	To shares forfeited A/c (100*5)				500
	(Being 100 shares forfeited @ 10each (8 called up) for non-payment of allotment including premium))
	Bank A/c (70*7)	Dr.		490
	Shares forfeited A/c (70*1)	Dr.		70
	To Equity share capital A/c				560
	(Being 70 shares were reissued to Mr. Sanjay ₹ 8 called for ₹ 7 per share)
	Shares forfeited A/c	Dr.		280
	To Capital reserve A/c				280
	(Being shares forfeited money transferred to capital reserve)

Working Note:

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

Amount forfeited on 100 shares	= ₹ 500
Amount forfeited on 70 shares	= 500/100 x 70 = 350
Less: Discount allowed on reissued shares	=70
Profit transferred to capital reserve A/c	=280