Question

Lilly Ltd. forfeited 100 shares of ₹ 10 each issued at 10% premium (₹ 8 called up ) on which a shareholder did not pay ₹ 3 of allotment (including premium) and first call of ₹ 2. Out of these 60 shares were reissued to Ram as fully paid for ₹ 8 per share and 20 shares to Suraj as fully paid up @ ₹ 12 per share at different intervals of time.

Prepare Share Forfeiture account.

Answer 1

Share Forfeiture A/c
Particulars	Amt(₹)	Particulars	Amt(₹)
To Share Capital A/c	120	By Share Capital A/c	400
To Capital Reserve A/	120
To Capital Reserve A/c	80
To Balance c/d	80
	400		400