A Company forfeited 100 equity shares of Rs 100 each issued at a premium of 50% ( to be paid at the time of allotment) on which first call money of Rs 30 per equity share was not recieved, final call of Rs 20 is yet to be made. These shares were subsequenttly reissued at Rs 70 per equity share at Rs 80 paid up.
Give the necessary Journal entries regarding forfeiture and reissue of shares.
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The Entry for transfer of Profit on Share Forfeiture is as follows:
The Entry for transfer of Profit on Share Forfeiture is as follows:
| Journal Entry | ||||||
| Date | Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
||
| Share Forfeiture A/c | Dr. | 4,000 | ||||
| To Capital Reserve | 4,000 | |||||
| (Profit on Forfeiture of Shares is transferred to Capital Reserve) | ||||||