Question

A Ltd. forfeited 800 shares of ₹10 each issued at 20% premium (to be paid at the time of allotment) for non-payment of a final call of ₹2 per share. Out of these, 600 shares were re-issued as fully paid-up for ₹13 per share. Journalise.

Answer 1

Journal entries
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Share Capital A/c (800 × ₹10)     ...Dr.		8,000
	To Share Forfeiture A/c (800 × ₹8)			6,400
	To Share Final Call A/c (800 × ₹2)			1,600
	(Being 800 Shares forfeited due to non-payment of money)
2.	Bank A/c (600 × ₹13)     ...Dr.		7,800
	To Share Capital A/c (600 × ₹10)			6,000
	To Securities Premium Reserve A/c (600 × ₹3)			1,800
	(Being 600 Shares re-issued)
3.	Share Forfeiture A/c (`6,400 xx 600/800`)     ...Dr.		4,800
	To Capital Reserve A/c			4,800
	(Being Profit on 600 shares transfer to Capital Reserve A/c)