Question no 45 Chapter 1 - Unimax Class 12 Part 2

Question No 45 Chapter 1 – Unimax Class 12 Part 2 – 2021

Table of Contents

The solution of Question 45 Chapter 1 of +2 Part-2: –

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

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

200 shares of ₹ 10 each issued at a premium of ₹ 5 per share payable with allotment were forfeited by the non-payment of allotment money of ₹ 9 pre share including premium. The first and final call of ₹ 3 per share were not made. The forfeited shares were reissued at ₹ 14 per share fully paid up.

The solution of Question 45 Chapter 1 of +2 Part-2: –

In the books of M/S Naveen Ltd.
Journal entries

Date	Particulars		L.F.	Debit	Credit
	Shares capital A/c	Dr.		1,400
	Securities Premium A/c	Dr.		1,000
	To Shares allotment A/c				1,800
	To shares forfeited A/c				600
	(Being 200 shares forfeited due to non-payment of allotment money @ ₹ 9 per share including premium 5 PR share)
	Bank A/c	Dr.		2,800
	To Share capital A/c				2,000
	To Securities Premium A/c				800
	(Being 200 forfeited shares reissued at ₹ 14 per share fully paid up)
	Shares forfeited A/c	Dr.		600
	To Capital reserve A/c				600
	(Being profit on 200 forfeited shares transferred to capital reserve)

Working Note:

1. Calculation of Application money

	₹
Face value of share	10
Less: First and final call money	3/7
Less: Allotment money excluding premium (9-5) Application money received and forfeited per share	4 3

2. Since, share premium remains unpaid, securities A/c has been debited at the time of forfeiture of shares.

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3. Shares, if originally issued at premium and forfeited need not to be issued at original premium.

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