Question

Manika Ltd. forfeited 500 shares of ₹ 100 each for non-payment of first call of ₹ 20 per share and second and final call of ₹ 25 per share. 250 of these shares were reissued at ₹ 50 per share fully paid up. Pass the Journal Entries for forfeiture and reissue of shares.  

Answer 1

In the books of Manika Ltd. Journal Entries
Date	Particulars	L.F.	Amount (₹)	Amount (₹)
1.	Share Capital A/c   ...Dr.		50,000	-
	To Share Forfeiture A/c		-	27,500
	To Share First Call A/c		-	10,000
	To Share Second & Final Call A/c			12,500
	(Being shares forfeited)
2.	Bank A/c   ...Dr.		12,500	-
	Share Forfeiture A/c   ...Dr.		12,500	-
	To Share Capital A/c		-	25,000
	(Being 250 shares re-issued)
3.	Share Forfeiture A/c   ...Dr.		1,250	-
	To Capital Reserve A/c		-	1,250
	(Profit on 250 reissued shares transferred to capital reserve)