Match the following. Journal Entr

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Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

Match the following.

Journal Entries	Narratives
A. Share Allotment A/c Dr. To Share Capital A/c To securities Premium Reserve A/c	I. (Forfeiture of Shares for Non- Payment of Second and Final Call)
B. Shares Capital A/c Dr. To Share Second and Final Call A/c To Share Forfeiture A/c	II. (Amount due on allotment of Shares including premium)
C. Share Forfeiture A/c Dr. To Capital Reserve A/c	III. (First Call amount received on shares)
D) Bank A/c Dr. To Equity share first call A/c	IV. (Profit on reissue shares transferred to Capital Reserve)

Choose the correct answer from the options given below:

Options:

A-I. B-II, C-IV, D-III

A-II, B-III, C-IV, D-I

A-II, B-I, C-III, D-IV

A-II, B-I, C-IV, D-III

Correct Answer:

A-II, B-I, C-IV, D-III

Explanation:

* Share Allotment A/c Dr.
To Share Capital A/c
To securities Premium Reserve A/c - It is related with due amount of allotment on shares.

* Shares Capital A/c Dr.
To Share Second and Final Call A/c
To Share Forfeiture A/c - It is related with forfeiture.

* Share Forfeiture A/c Dr.
To Capital Reserve A/c - It is related with transferring balance to capital reserve.

* Bank A/c Dr.
To Equity share first call A/c - It is related with amount received on call.