Q 93 DK Goel Issue of Shares Solutions Class 12 CBSE (2024-25)

Solution of Question number 93 of Accounting for Companies Issue of shares chapter 6 of DK Goel Class 12 CBSE (2024-25)

X Ltd., forfeited 1,000 shares of ₹ 20 each issued at a premium of ₹ 2 per share to Ashok (₹ 18 called-up) on which he did not pay allotment of ₹ 6 (including premium) and 1st Call of ₹ 4. Give Journal Entries for forfeiture and re-issue in the following cases:

(i) 600 shares were re-issued to Mohan at ₹ 14 per share as ₹ 18 paid up; (ii) 200 shares to Sohan as fully paid-up for ₹ 24 per share; and (iii) 200 shares to Suresh as fully paid-up for ₹ 10 per share at different intervals of time.

[Ans. Amount transferred to Capital Reserve (i) ₹ 3,600; (ii) ₹ 2,000 and (iii) Nil.]

Solution:-