Page 347 - VIRANSH COACHING CLASSES

(b)

Date Particulars L.F. Debit ` Credit `
1. Bank A/c ............................................................Dr. 3,500
Share Forfeiture A/c ............................................Dr. 500
To Equity Share Capital A/c 4,000
(Being re-issue of 500 equity shares @ ` 7 per share,
@ ` 8 per share called-up)
2. Share Forfeiture A/c .......... Dr. 2,500
To Capital Reserve A/c 2,500
(Being balance on share forfeiture A/c transferred to
Capital Reserve)

(c)
Date Particulars L.F. Debit ` Credit `
1. Bank A/c ............................................................Dr. 2,750
Share Forfeiture A/c ............................................Dr. 750
To Equity Share Capital A/c 3,500
(Being re-issue of 500 equity shares @ ` 5.50 per share,
@ ` 8 per share called-up)
2. Share Forfeiture A/c ...........................................Dr. 2,250
To Capital Reserve A/c 2,250
(Being balance on share forfeiture A/c transferred to
Capital Reserve)

HHHHHHHHHHHHH EXERCISE - 8 HHHHHHHHHHHHH

Q.1 Objective Questions :

(A) Select he appropriate answer from the alternative given below and rewrite the sentence.
1. The balance of Share Forfeiture A/c is transferred to ...................... account after re-issue
of these share.
a) Reserve Capital b) Capital Reserve
c) Profit & Loss d) Share capital

2. Premium received on issue of shares is shown to
a) Liability side of Balance Sheet b) Asset side of Balance Sheet
c) Profit & Loss Account debit side d) Profit & Loss A/c credit side.

3. Shareholders get ...................... on shares.
a) Interest b) Commission
c) Rent d) Dividend
4. The document inviting to subscribe the shares of a company is ...................... .

a) Prospectus b) Memorandum of Association
c) Articles of Association d) Share certificate

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