Question

JCV Ltd., forfeited 200 shares of ₹ 10 each issued at a premium of ₹ 2 per share for the non-payment of allotment money of ₹ 3 per share (including premium). The first and final call of  ₹ 4 per share has not been made as yet . 50% of the forfeited shares were reissued at ₹ 8 per share  as fully paid-up . Pass necessary Journal entries for the forfeiture and reissue of shares. 

Answer 1

Application	Rs	5
Allotment	Rs	3	(1+2)
First and Final Call	Rs	4
		12	(10+2)

Called-up = Application + Allotment

= Rs 5 + 3 (including premium Rs 2)

Book of JCV Limited
Journal

Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Share Capital A/c (200×6)	Dr.		1,200
	Securities Premium A/c (200×2)	Dr.		400
	To Share Forfeiture A/c (200×5)				1,000
	To Calls-in-Arrears A/c (200×3)				600
	(200 shares of Rs 10 each on which Rs 8  had called (including Rs 2 premium), forfeited for the non-payment of allotment Rs 3 (including Rs 2 premium)
	Bank A/c	Dr.		800
	Share Forfeiture A/c	Dr.		200
	To Share Capital A/c				1,000
	(100 shares of Rs 10 each re-issued at Rs 8 per share fully paid-up)
	Share Forfeiture A/c	Dr.		300
	To Capital Reserve				300
	(Amount of share forfeiture of 100 re-issued shares transferred to Capital Reserve)

Working Note 

Share Forfeiture of Re-issued Shares

Share Forfeiture (at the time of forfeiture)	Cr.	5
Share Forfeiture (at the time of re-issue)	Dr.	2
Balance in Share Forfeitre (after re-issue)	Cr.	3	per share

 Capital Reserve

`= "Amount of share for forfeiture"/"Total share for forfeited" xx "Shares reissued - Loss on reissued of forfeited shares "`

`=1000/200 xx 100 - 100 xx 2 = 500 - 200 = 300`