Question

Alpha Ltd. issued 20,000 Equity Shares of  ₹ 10 each at par payable: On application ₹ 2 per share; on allotment ₹ 3 per share; on first call ₹ 3 per share; on second and final call ₹ 2 per share.
Mr. Gupta was allotted 100 shares. Pass necessary  Journal entry relating to the forfeiture of shares in each of the following alternative cases:

Case I	If Mr. Gupta failed to pay the allotment money and his shares were immediately forfeited.
Case II	If Mr. Gupta failed to pay allotment money and on his subsequent failure to pay the first call, his shares were forfeited.
Case III	If Mr. Gupta failed to pay the first call and on his subsequent failure to pay the second and final call, his shares were forfeited

Answer 1

Application	₹	2
Allotment	₹	3
First Call	₹	3
Final Call	₹	2
		10

Books of Alpha Limited
Journal

Date	Particulars			L.F.	Debit Amount (₹)	Credit Amount (₹)
Case I	Share Capital A/c (100×5)	Dr.			500
	To Share Forfeiture A/c					200
	To Share Allotment A/c					300
	(100 shares of Rs 10 each, Rs 5 called-up, forfeited for the non-payment of allotment)
Case II	Share Capital A/c (100 × 8)		Dr.		800
	To Share Forfeiture A/c					200
	To Share Allotment A/c					300
	To Share First Call A/c					300
	(100 shares of Rs 10 each, Rs 8 called-up forfeited for non-payment allotment and first-call)
Case III	Share Capital A/c	Dr.			1,000
	To Share Forfeiture A/c					500
	To Share First Call A/c					300
	To Share Final Call A/c					200
	(100 shares of Rs 10 each forfeited for the non-payment Rs 5 each)