Q 106 DK Goel Issue of Shares Solutions Class 12 CBSE (2024-25)

Solution of Question number 106 of Accounting for Companies Issue of shares chapter 6 of DK Goel Class 12 CBSE (2024-25)

(i) Vishesh Ltd. forfeited 1,000 Equity Shares of ₹ 10 each issued at a premium of ₹ 2 per share for non-payment of allotment money of ₹ 5 per share including premium. The final call of ₹ 2 per share was not yet called on these shares. Of the forfeited shares 800 shares were reissued at ₹ 12 per share fully paid-up. The remaining shares were reissued at ₹ 11 per share fully paid up.

(ii) L Ltd. forfeited Mr. M’s shares who has applied for 600 shares and was allotted 400 shares failed to pay allotment money of ₹ 4 per share including premium of ₹ 2 on which he had paid application money of ₹ 2 only. Pass necessary journal entries for forfeiture of shares by opening call in arrear account.

[Ans. Amount transferred to Capital Reserve Case (i) ₹ 5,000.]

Hint: In case (i) it may be assumed that all the shares are reissued at the same time.

Solution:-