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

Question no- 44 Chapter no-1 Unimax Class-12 Part-II
Question no- 44 Chapter no-1 Unimax Class-12 Part-II

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

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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.DebitCredit
 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/cDr. 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
  

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