Question

Pass necessary journal entries in the books of the company for the following transactions:
Vishesh Ltd. forfeited 1,000 Equity Shares of ₹ 10 each issued at a premium of ₹ 2 per share for non-payment of allotment money of ₹ 5 per share including premium. The final call of ₹ 2 per share was not yet called on these shares. Of the forfeited shares 800 shares were reissued at ₹ 12 per share as fully paid-up.
The remaining shares were reissued at ₹ 11 per share fully paid-up.

Answer 1

Journal
In the books of Vishesh Ltd.

Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Equity Share Capital A/c (8×1,000)	Dr.		8,000
	Securities Premium A/c (2×1,000)	Dr.		2,000
	To Share Forfeiture A/c				5,000
	To Calls-in-Arrears				5,000
	(1,000 shares of Rs 10 each issued at premium of Rs 2 forfeited for non payment of allotment money of Rs 5 including premium, final call of Rs 2 not yet made)
	Bank A/c (12×800)	Dr.		9,600
	To Share Capital A/c				8,000
	To Securities Premium A/c				1,600
	(800 shares reissued at Rs 12 fully paid up)
	Bank A/c (11×200)	Dr.		2,200
	To Share Capital A/c				2,000
	To Securities Premium A/c				200
	(200 shares reissued at Rs 11 fully paid up)
	Share Forfeiture A/c	Dr.		5,000
	To Capital Reserve A/c				5,000
	(Profit on reissue transferred to capital reserve)