# 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 1 – Unimax Class 12 Part 2 – 2021

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 sharesBooks 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

Comment if you have any Doubts.

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