Question

Mamta Ltd. forfeited 3,000 shares of ₹ 10 each on which the first call of ₹ 3 per share was not received. The second and final call of ₹ 1 per share was not yet called. Out of these, 2,000 shares were reissued at ₹ 9 per share, ₹ 8 paid up.

Hint:

In case of forfeiture, unpaid amounts are debited to respective accounts, and forfeited amounts are credited to Share Forfeiture Account. On reissue, any surplus remaining in the Share Forfeiture Account after reissue is transferred to Capital Reserve.

Answer 1

Journal Entries: \begin{center} \renewcommand{\arraystretch}{1.5} \begin{tabular}{|p{10cm}|r|r|} \hline Particulars & Dr Amount (₹) & Cr Amount (₹)
\hline Share Capital A/c (3,000 × ₹ 9) & 27,000 & --
To Share Forfeiture A/c (3,000 × ₹ 3) & -- & 9,000
To Share First Call A/c (3,000 × ₹ 3) & -- & 9,000
To Share Capital A/c (3,000 × ₹ 6) & -- & 18,000
(Being forfeiture of 3,000 shares for non-payment of first call) & &
\hline Bank A/c (2,000 × ₹ 9) & 18,000 & --
To Share Capital A/c (2,000 × ₹ 9) & -- & 18,000
(Being reissue of 2,000 forfeited shares at ₹ 9 per share, fully paid) & &
\hline Share Forfeiture A/c & 6,000 & --
To Capital Reserve A/c & -- & 6,000
(Being transfer of surplus on reissue of shares to Capital Reserve) & &
\hline \end{tabular} \end{center}