Question

Journalise the following:

The directors of a company forfeited 200 equity shares of Rs. 10 each on which Rs. 800 had been paid. The shares were reissued upon payment of Rs. 1,500.

Answer 1

Journal Entries
Date	Particulars	L.F.	Amount (₹)	Amount (₹)
1.	Equity Share Capital A/c   ...Dr.		2,000	-
	To Calls-in-Arrears A/c		-	1,200
	To Share Forfeiture A/c		-	800
	(Being 200 equity shares forfeited for non-payment of call money)
2.	Bank A/c   ...Dr.		1,500	-
	Share Forfeiture A/c   ...Dr.		500	-
	To Equity Share Capital A/c		-	2,000
	(Being 200 forfeited shares reissued as fully paid-up)
3.	Share Forfeiture A/c   ...Dr.		300	-
	To Capital Reserve A/c		-	300
	(Being the net gain on the reissue of forfeited shares transferred)