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Question -

Amit holds 100 shares of ₹ 10 each on which he has paid Re.1 per share as application money. Bimal holds 200 shares of ₹ 10 each on which he has paid Re.1 and ₹ 2 per share as application and allotment money, respectively. Chetan holds 300 shares of ₹ 10 each and has paid Re.1 on application, ₹ 2 on allotment and ₹ 3 for the first call. They all fail to pay their arrears and the second call of ₹ 2 per share and the directors, therefore, forfeited their shares. The shares are reissued subsequently for ₹ 11 per share as fully paid. Journalise the transactions.



Answer -

Date

Particulars

L.F.

Debit

Amount

₹

Credit

Amount

₹

Share Capital A/c (600×8)

Dr.

4,800

To Share Allotment (100×2)

200

To Share First Call A/c (300×3)

900

To Share Second Call A/c (600×2)

1,200

To Share Forfeiture A/c

2,500

(600 shares @ ₹ 10 per share ₹ 8 called-up forfeited after

making Second Call)

Bank A/c

Dr.

6,600

To Share Capital A/c

6,000

To Securities Premium A/c

600

(600 shares @ ₹ 10 each for ₹ 11 per share fully paid-up

reissued)

Share Forfeiture A/c

Dr.

2,500

To Capital Reserve A/c

2,500

(Balance of Share Forfeiture Account transferred to Capital

Reserve Account after reissue)

WorkingNotes:

Share Forfeiture Account credited

Amit

(100×1)

=

100

Bimal

(200×3)

=

600

Chetan

(300×6)

=

1,800

2,500

 

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