X number of shares of face value of rupees 10 were forfeited for the non payment of final call of - Accountancy - Reconstitution- Change in Existing Profit Sharing Ratio

Question

X number of shares of face value of rupees 10 were forfeited for
the non payment of final call of rupees 4 per share these shares
were reissued at a loss and an equal amount of rupees 4500 was
transferred to Capital Reserve account pass the necessary journal
entries

Shruti Mishra · Accepted Answer

Dear Student,
Journal Entries will be :-

Date
Particulars
L f
Debit
Credit

Share Capital A/c Dr

To Forfeited Shares Account A/c

To Shares Final Call A/c

(Being shares Forfeited )

Bank A/c Dr

Forfeited Shares A/c (loss on re-issue)

To Share Capital A/c

(Being forfeited shares re-issued)

Forfeited Shares Account A/c

4,500

To Capital Reserve A/c

4,500

(Being balance amount transferred to Capital Reserve)

Note : Amounts are not provided by you in the question hence you
can fill the same as per requirement
Regards

Date	Particulars	L.f	Debit	Credit
	Share Capital A/c Dr.
	To Forfeited Shares Account A/c
	To Shares Final Call A/c
	(Being shares Forfeited .)

	Bank A/c Dr.
	Forfeited Shares A/c (loss on re-issue)
	To Share Capital A/c
	(Being forfeited shares re-issued)

	Forfeited Shares Account A/c		4,500
	To Capital Reserve A/c			4,500
	(Being balance amount transferred to Capital Reserve)

X number of shares of face value of rupees 10 were forfeited for the non payment of final call of rupees 4 per share.. these shares were reissued at a loss and an equal amount of rupees 4500 was transferred to Capital Reserve account.. pass the necessary journal entries