Akash (CA Final Article Assistant)     27 May 2011

# A/c doubt plz help

### d)Net balance in Share Forfeiture Account

CA Lalit Kandoi (Chartered accountant)     27 May 2011

1.less from the profit the value of closing stock and goowill is Rs.16967 as no year of purchase is given  so multiply with 1.

2.

Akash (CA Final Article Assistant)     27 May 2011

answer in module is 17700 n there is no option of 16967 thanx anyway.

one more question as we see profit has increasing trend dont we have to use weighted avg profit method

Sunshine (Helping All)     27 May 2011

hie..

correct profits will be-

1998-99 ----- 2000

99-00-------  26100-2200= 23900

00-01------- 31200+2200-6200= 27200

now take the total of profits = 53100

and divide by 3..u will get avg profit = 17700

Sunshine (Helping All)     27 May 2011

in the year 00-01 the opening stock  and closing stock both are overvalued-- so make the adjustments accordingly...

yes u are correct that u have to use weighted average method in case profits show an increasing trend....u can use that method and get the answer as goodwill = 21900

if this option is provided then that will be correct ... if u just got option of 17700 then u got no other choice right...!!

Regards

Akash (CA Final Article Assistant)     27 May 2011

### Thanx a lot can u solve no.2

Sunshine (Helping All)     28 May 2011

Hie..

m out of touch with this chapter...still i tried...

u please check the answer and temme ..then i will post the solution...

i got..

a)100000

b)300000

Akash (CA Final Article Assistant)     28 May 2011

Answers rgiven in module r  96000 , 100000 , 3920000 , 100000

Sunshine (Helping All)     28 May 2011

hmmm...what can i say now...i will stick to my answer still.....wait for someone else to solve it...i tried again but m getting the same solution...see for the 1st forfeiture..

Share capital a/c dr. 320000

to share allotment a/c 180000(200000-20000)

to share 1st call a/c 120000

to share forfeiture a/c 100000

Sunshine (Helping All)     28 May 2011

i asked some members to give some assisstance...wait and see if it works out..

Vijay (Adamo Studio)     28 May 2011

Correct profit

1998-99   2000

1999-00   26100-2200=23900

2000-01   31200+2200-6200=27200

Goodwill= 17700

Vijay (Adamo Studio)     28 May 2011

Alloted        Applied

200000       240000

5                  6

E              4000          ?=4800

So E paid at the time of application= 4800*20=96000

So,  what E already paid will be credited to S.F. acc i.e. 96000

Vijay (Adamo Studio)     28 May 2011

Alloted        Applied

200000       240000

5                  6

f              6000          ?=7200

So E paid at the time of application= 7200*20=144000 out of which advance money is 1200*20=24000

& E paid at the time of allotment= 6000*30=180000less advance money is 1200*20=24000 so net paid=156000

Total amt recd frm F=144000+156000=300000

So,  what F already paid will be credited to S.F. acc i.e. 300000

Vijay (Adamo Studio)     28 May 2011

Total share premium credited= 200000*20=              4000000

Less: debited at the time of reissue= 8000*100*10%=80000

Balance                                                                                   3920000

Vijay (Adamo Studio)     28 May 2011

S.F. credited at the time of forfeiture of E’s share   96000

S.F. credited at the time of forfeiture of F’s share   300000

But 8000 shares reissued out of which whole of E’s shares i.e. 4000 & rest F’s shares 4000 reissued. So 2000 F’s shares nt reissued.

So whole S.F. credited at the time of forfeiture of E’s share   96000

will be credited to capital reserved and

calculation of the amt credited to C.R. out of S.F. credited at the time of forfeiture of F’s share

shares      amt

6000        300000

4000           ?=200000

So balance in S.F. acc (3-2)=100000

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