Question

On 1st May,2014, Directors of a Limited Company forfeited 200 shares of ₹ 20 each , ₹ 15 per share called-up, on which ₹ 10 per share has been paid by A , the amount of the first call of ₹ 5 per share being unpaid . Ten days Later, the Directors reissued the forfeited shares to B credited as ₹ 15 per share paid-up , for a payment of ₹ 10 per share.
Give journal entries in the company's books to record the forfeited shares and their reissue. 

Answer 1

Journal Entries

Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2014
May 01	Share Capital A/c (15 × 200)	Dr.		3,000
	To Share Forfeiture A/c (10 × 200)				2,000
	To Calls-in-Arrears A/c (5 × 200)				1,000
	(200 shares of Rs 20 each, Rs 15 called-up forfeited for the non-payment Rs 5 per share)
May 11	Bank A/c (10 × 200)	Dr.		2,000
	Share Forfeiture A/c (5 × 200)	Dr.		1,000
	To Share Capital A/c (15 × 200)				3,000
	(200 shares of Rs 20 each re-issued at Rs 10 each, Rs 15 paid-up)
May 11	Share Forfeiture A/c	Dr.		1,000
	To Capital Reserve A/c				1,000
	(Balance in share forfeiture after re-issue transferred to Capital Reserve)

Working Note-

Share Forfeiture Credit (at the time of forfeiture)	2,000
Less: Share Forfeiture Debit (at the time of re-issue)	1,000
Balance in Share Forfeiture Account after re-issue	1,000

Capital Reserve = Balance in Share Forfeiture Account after re-issue = Rs 1,000