The manager of a company forfeited 200 shares of Rs. 10 each fully called-up for non-payment of first call of Rs. 2 and final call of Rs.3 per share. 120 of these shares were reissued at Rs.6 per share fully paid-up. Journalise
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Working Notes:
Journal Entry | ||||||
Date | Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
||
Share Capital A/c | Dr. | 2,000 | ||||
To Share Forfeiture A/c | 1,000 | |||||
To Share First Call A/c | 400 | |||||
To Share Final Call A/c | 600 | |||||
(200 shares were forfeited due to non-payment of first and final call) | ||||||
Bank A/c | Dr. | 720 | ||||
Share Forfeiture A/c | Dr. | 480 | ||||
To Share Capital A/c | 1,200 | |||||
(Out of the forfeited shares, 120 shares were reissued) | ||||||
Share Forfeiture A/c | Dr. | 120 | ||||
To Capital Reserve A/c | 120 | |||||
(Gain on reissue transferred to capital reserve) | ||||||
Working Notes: