Q 40 DK Goel Issue of Shares Solutions Class 12 CBSE (2024-25)

Solutions of Question number 40 of Accounting for Companies Issue of shares chapter 6 of DK Goel Class 12 CBSE (2024-25)

A, who holds 200 shares of ₹ 100 each, has paid only ₹ 25 per share as application money.

B, who holds 300 shares of ₹ 100 each, has paid ₹ 25 per share on application and ₹ 30 per share on allotment.

C, who holds 400 shares of ₹ 100 each, has paid ₹ 25 per share on application, ₹ 30 per share on allotment and ₹ 20 per share on first call.

They failed to pay their arrears and the final call. Their shares were forfeited and re-issued at ₹ 95 per share.

Prepare necessary journal entries.

[Ans. Capital Reserve ₹ 47,000.]

Solution:-