Prakash Limited forfeited 160 shares of rupees 10 each on which the holder has not paid call money for rupees 2 Per share. out of these 40 shares were re issued to Ekta as fully paid for Rs 7 per share .compute the balance to be transferred to Capital Reserve
Dear Student,
Regards
Date | Particulars | LF | Dr. | Cr. |
Share Capital A/c Dr. To Share Forfeiture A/c To Calls in arrears A/c (Being 160 shares on failure in payment of call money) | 1600 | 1280 320 | ||
Bank A/c Dr. Share F/F A/c Dr. To Share Capital A/c (Being 40 shares reissued @Rs.7/share) | 280 120 | 400 | ||
Share F/F A/c Dr. To Capital Reserve A/c (Being balance of forfeiture account transferred to capital reserve) | 1160 | 1160 |
Regards