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Journalise the Following Transactions in the Books Bhushan Oil Ltd.: - Accountancy

Numerical

Journalise the following transactions in the books Bhushan Oil Ltd.:

(a) 200 shares of Rs. 100 each issued at a premium of Rs. 10 were forfeited for the non-payment of allotment money of Rs. 60 per share. The first and final call of Rs. 20 per share on these shares were not made. The forfeited shares were reissued at Rs. 70 per share as fully paid-up.

(b) 150 shares of Rs. 10 each issued at a premium of Rs. 4 per share payable with allotment were forfeited for non-payment of allotment money of Rs. 8 per share including premium. The first and final calls of Rs. 4 per share were not made. The forfeited shares were reissued at Rs. 15 per share fully paid-up.

(c) 400 shares of Rs. 50 each issued at par were forfeited for non-payment of final call of Rs. 10 per share. These shares were reissued at Rs. 45 per share fully paid-up.

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Solution

Case (a)

Books of Bhushan Oil Ltd.

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

 

Share Capital A/c (200 ×80)

Dr.

 

16,000

 

  Securities Premium A/c (200 × 10) Dr.   2,000  

 

 

To Share Allotment A/c (200 × 60)

 

 

 

12,000

 

 

To Share Forfeiture A/c (200 ×30)

 

 

6,000

 

(200 shares forfeited @ ₹100 each  issued at a premium of

 ₹10 for the nonpayment of allotment money  ₹60 per share)

 

 

 

 

Bank A/c (200x 70) 

Dr.

 

14,000

 

 

Share Forfeiture A/c (200 ×30)

Dr.

 

6,000

 

 

 

To Share Capital A/c (200 × 100)

 

 

20,000

 

(200 shares reissued @ ₹70 per share fully paid-up)

 

 

 

 

Case (b)

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

 

Share Capital A/c

Dr.

 

900

 

 

Securities Premium A/c

Dr.

 

600

 

 

 

To Share Allotment A/c

 

 

1,200

 

 

To  Share Forfeiture A/c

 

 

300

 

(150 shares @ ₹10 each forfeited for nonpayment of allotment

money Rs 8 per share including premium ₹4)

 

 

 

 

Bank A/c

Dr.

 

2,250

 

 

 

To Share Capital A/c

 

 

1,500

 

 

To Securities Premium A/c

 

 

750

 

(150 shares @ ₹10 each reissued For  ₹15 per share fully

paid-up)

 

 

 

 

Share Forfeiture A/c

Dr.

 

300

 

 

 

To Capital Reserve A/c

 

 

300

 

(Balance of Share Forfeiture Account transferred to Capital

Reserve Account)

     

Case (c)

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

 

Share Capital A/c

Dr.

 

20,000

 

 

 

To Share Final Call A/c

 

 

4,000

 

 

To Share Forfeiture A/c

 

 

16,000

 

(400 shares @ ₹ 50 per share forfeited for nonpayment of Final

Call Rs 10 per share)

 

 

 

 

Bank A/c

Dr.

 

18,000

 

 

Share forfeiture A/c

Dr.

 

2,000

 

 

 

To Share Capital A/c

 

 

 

20,000

 

(400 shares @ ₹50 each reissued for  ₹45 fully paid-up)

 

 

 

 

 

Share Forfeiture A/c

Dr.

 

14,000

 

 

 

To Capital Reserve A/c

 

 

14,000

 

(Balance in Share Forfeiture Account  transferred to Capital

Reserve Account)

 

 

 

  Is there an error in this question or solution?
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APPEARS IN

NCERT Class 12 Accountancy - Company Accounts and Analysis of Financial Statements
Chapter 1 Accounting for Share Capital
Numerical Questions | Q 23 | Page 70
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