Question

A company forfeited 8,000 shares of ₹ 10 each, on which ₹ 8 were called (including ₹ 1 premium) and ₹ 6 was paid (including ₹ 1 premium). Out of these, 5,000 shares were reissued at the maximum possible discount. Pass necessary journal entries.

Answer 1

Journal Entries
Date	Particulars	Debit	Credit
1.	Share Capital A/c  ...Dr.	56,000
	To Shares Forfeited A/c		40,000
	To Calls in arrears A/c		16,000
	(Being Shares forfeited)
2.	Bank A/c  ...Dr.	10,000
	Shares Forfeited A/c  ...Dr.	25,000
	To Share Capital A/c		35,000
	(Being 5000 shares reissued at a discount)