x ltd. forfeited 200 shares of Rs. 100 each , Rs. 70 called up ,on which the shareholder paid application and allotment money of Rs. 50 per share . out of these 150 share were reissued to Naresh as Rs. 70 paidup for Rs. 80 per share calculate transfer amount to reserve capital.
| Journal | |||||
| Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
| Share Capital A/c (200 x 70) | Dr. | 14,000 | |||
| To Calls in Arrears A/c (200 x 20) | 4,000 | ||||
| To Share Forfeiture A/c (200 x 50) | 10,000 | ||||
| (Forfeiture of 200 shares for non-payment of call money) | |||||
| Bank A/c (150 x 80) | Dr. | 12,000 | |||
| To Share Capital A/c (150 x 70) | 10,500 | ||||
| To Securities premium A/c (150 x 10) | 1,500 | ||||
| (Reissue of 150 shares at Rs 80 per share , Rs 70 paid up) | |||||
| Share Forfeiture A/c (150 x 50) | Dr. | 7,500 | |||
| To Capital Reserve A/c | 7,500 | ||||
| (Profit on re-issue transferred to Capital Reserve Account) | |||||
Working note :
Gain on Forfeiture of 150 share (150 x 50) = 7,500
Less : Loss on reissue of 150 shares (150 x 0) = 0
Net Gain ( Capital Reserve ) on 150 shares = 7,500
Note : As the Reissued shares are issued for more amount of money than paid up value of share , it is assumed that Shares reissued are reissued on Premium .