Class XII Boards🔥Q10 | Pro Rata | Premium in Application & Allotment | Forfeiture and Reissue

In this video, we tackle Question 10 from our Issue of Share Capital series, focusing on a highly technical scenario: Securities Premium on both Application and Allotment. This is a "level-up" problem designed for Class 12 Accountancy Board Exams to test your precision with premium adjustments.
When a premium is included in the application stage, the calculation for Pro-Rata adjustments and Forfeiture becomes much more detailed. This tutorial simplifies the entire process.
Key Learning Objectives:
• Premium in Application: How to separate the Face Value and Premium during the initial receipt of application money.
• Pro-Rata & Premium: Calculating the excess application money available to be adjusted towards allotment when the application itself had a premium.
• Double Premium Logic: Handling the Securities Premium Reserve during forfeiture—when to cancel it and when to leave it untouched.
• Calls in Arrears: Finding the net amount unpaid on allotment for a pro-rata shareholder.
• Reissue & Capital Reserve: Passing final entries for reissuing forfeited shares and calculating the transfer to Capital Reserve.
This session is essential for CBSE, ISC, and State Board students aiming for a perfect score in their Company Accounts section.
Time Stamps
0:00 - Introduction & Question Analysis (Double Premium Case)
1:30 - Preparing the Analytical Table (Handling Premium in App.)
4:15 - Journal Entries: Application & Allotment Stages
6:45 - Working Note: Net Arrears for the Defaulting Shareholder
9:30 - Forfeiture Entry: The logic behind Securities Premium Debit
12:15 - Reissue & Final Capital Reserve Calculation
14:30 - Summary & Pro-Tips for Board Exam Presentation

#class12accounts
#issueofshares
#SecuritiesPremium
#DoublePremium
#ProRataAllotment
#forfeitureofshares
#companyaccounts
#boards2026
#VishwaAhuja
#vishwakul
#boardexampreparation
#SharesAccounting