Question

Lakshmi was holding 50 hares of ₹ 10 each on which he paid ₹ 2 on application but could not pay ₹ 4 on the allotment and ₹ 2 on first call. Directors forfeited the shares after the first call. Give journal entry for recording the forfeiture of shares.

Answer 1

Date	Particulars	L.F.	Debit Rs.	Credit Rs.
(1)	Share capital A/c (50 × Rs. 8)  Dr.   To share I call A/c (50 × Rs. 2)   To share allotment A/c  (50 × Rs. 4)   To Forfeited Shares A/c  (50 × Rs. 2) [Forfeited of shares made]		400	100 200 100