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Question No 44 Chapter 1 – Unimax Class 12 Part 2 – 2021
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Table of Contents
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 |
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Share Capital: Meaning, Types, and Classes
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
