4 Marks Question

Question 14 Marks

X, Y and Z were partners sharing profits and losses equally. Y died on 1st October, 2023 and total amount transferred to Y's executors was ₹ 15,60,000. Y's executors were being paid ₹ 3,60,000 immediately and balance was to be paid in four equal quarterly instalments, together with Interest @ 6% p.a. Pass entries till payment of first two instalments.

Answer

Journal
Date	Particulars			Debit	Credit
1.10.2023	Y's Capital A/c		Dr	15,60,000
		To Y's Executors A/c			15,60,000
	(Being balance in capital transferred to executors account)
1.10.2023	Y's Executors A/c		Dr	3,60,000
		To Banks A/c			3,60,000
	(Being payment made to the executor)
31.12.2023	Interest A/c		Dr	18,000
		To Y's Executor's A/c			18,000
	(Being Interest due)
31.12.2023	Y's Executors A/c		Dr	3,18,000
		To Banks A/c			3,18,000
	(Being payment made to the executor)
31.03.2024	Interest A/c		Dr	13,500
		To Y's Executor's A/c			13,500
	(Being Interest due)
31.03.2024	Y's Executors A/c		Dr	3,13,500
		To Banks A/c			3,13,500
	(Being payment made to the executor)

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Question 24 Marks

A company forfeited certain number of shares of Face Value ₹ 10 each, for non- payment of final call money of ₹ 4. These shares were reissued at a discount of ₹ 5 and amount of ₹ 4500 was transferred to capital Reserve account. Pass the necessary journal entries to show the above transactions and prepare Share forfeited account.

Answer

Journal
Date	Particulars			Debit	Credit
	Share capital A/c		Dr	45,000
		To Forfeited shares A/c			27,000
		To share final call A/c			18,000
	(Being 4500 shares forfeited)
	Bank A/c		Dr	22,500
	Forfeited shares A/c		Dr	22,500
		To Share Capital A/c			45,000
	(Being 4500 shares reissued)
	Forfeited share A/c		Dr	4,500
		To Capital reserve A/c			4,500
	(Being balance of share forfeiture transferred to Capital reserve)

Dr.	Share Forfeiture A/c		Cr.
Particulars	Amount	Particulars	Amount
To Share Capital A/c	22,500	By Share Capital	27,000
To Capital Reserve A/c	4,500
	27,000		27,000

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Accountancy 4 Marks Question

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