Question

❤30 points❤
A/C SB ch13 pg 352 e.g.18

My doubt:- from where the figure 50 came .i.e why 50 is multiplied with 50 (see in the pic and read the Q. to ans. my doubt )

Plz explain in detail step by step.
Best explanation will be marked as brainliest.

Q:- 200 Equity share of Rs.100 each issued at 10% discount forfeited for non payment of Final call of 40/- 150 shares reissued at Rs.75 each .
What will be the journal entry if 50 of the forfeited share is reissued at Rs.110/- each.​

Answer 1

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Answer 2

Answer:

eiture amount per share is the amount to be received by the company on forfeiture of each share.

ForfeitureAmount=ApplicationAmount+AllotmentAmount

Substitute the values in above equation

ForfeitureAmount=Rs10

Forfeiture amount is the money received by company on forfeiture (cancellation of share) or on the reissue of share.

ForfeitureAmount=No.ofshares×ForfeitureAmount

Substitute the values in the above equation

ForfeitureAmount=200shares×Rs10=Rs2,000

ForfeitureAmountfor80shares=80shares×Rs10=Rs800

ForfeitureAmountonreissue=80shares×Rs5=Rs400

Profit on the reissue is the profit earned by the company when the forfeited shares are reissued

Profitonreissue=ForfeitedAmountonforfeiture−ForfeitedAmountonReissue

Substitute the values in the above equation

Profitonreissue=Rs800−Rs400=Rs400

Hence, the profit earned on the reissue of shares is Rs 400.

Share forfeiture a/c Dr. Rs400

To share capital a/c Rs400.

Explanation:

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