a company forfeited 100 shares of Rs 10 each issued at 20% premium (to be paid at, the time of - Accountancy - Analysis of Financial Statements

Question

a company forfeited 100 shares of Rs 10 each issued at 20%
premium (to be paid at, the time of allotment) on which first call
money of rs 3 was not received the fianal call money of rs 2 is not
yet called
this share are subsequently forfeiture reissued at rs 7 per
share as rs 8 paid up give journal entries ?

Neha A. · Accepted Answer

Journal

Date

Particulars

L F

Debit

Amount

(Rs)

Credit

Amount

(Rs)

Share Capital A/c

Dr

800

To Share First Call

300

To Share Forfeiture A/c

500

(100 shares forfeited for non payment of share first call
)

Bank A/c

Dr

700

Share Forfeiture A/c

Dr

100

To Share Capital A/c

800

(100 forfeited shares re-issued @ 7 per share, Rs 8 fully paid
up)

Share Forfeiture A/c

Dr

400

To Capital Reserve A/c

400

(share forfeiture transferred to capital reserve)

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)

	Share Capital A/c	Dr		800
	To Share First Call				300
	To Share Forfeiture A/c				500
	(100 shares forfeited for non payment of share first call )

	Bank A/c	Dr		700
	Share Forfeiture A/c	Dr		100
	To Share Capital A/c				800
	(100 forfeited shares re-issued @ 7 per share, Rs 8 fully paid up)

	Share Forfeiture A/c	Dr		400
	To Capital Reserve A/c				400
	(share forfeiture transferred to capital reserve)