Q 72 DK Goel Issue of Shares Solutions Class 12 CBSE (2024-25)

Solutions of Question number 72 of Accounting for Companies Issue of shares chapter 6 of DK Goel Class 12 CBSE (2024-25)

X Ltd. invited applications for 40,000 shares of ₹ 10 each at 5% premium, payable as ₹ 3 on application, ₹ 3.50 on allotment (including premium) and balance on first and final call. Applications were received for 90,000 shares and allotment was made on pro-rata basis. The excess money received on application was to be adjusted against allotment money. A shareholder who applied for 4,500 shares, could not pay the call money and his shares were accordingly forfeited.

Pass necessary journal entries and show the items in Company’s Balance Sheet.

[Ans. Amount credited to Share Forfeiture Account on forfeiture of shares ₹ 12,000]

Solution:-