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Question
A share of ₹ 100 issued at a premium of ₹ 10 on which ₹ 80 (including premium) was called and ₹ 60 (including premium) was paid, has been forfeited. This share was afterwards reissued as fully paid-up for ₹ 70 . Give Journal entries to record the above.
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Solution
Journal
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
Share Capital A/c (Rs 80 – 10 premium) |
Dr. |
|
70 |
|
|
|
To Share Forfeiture (Rs 60 – 10 premium) |
|
|
50 |
|
|
|
To Calls-In-Arrears A/c |
|
|
20 |
|
|
|
(A share of Rs 100 on which Rs 70 called excluding the amount of securities premium Rs 10, forfeited for non-payment of Rs 20) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
70 |
|
|
|
Share Forfeiture A/c |
Dr. |
|
30 |
|
|
|
To Share Capital A/c |
|
|
100 |
|
|
|
(A share of Rs 100 re-issued at Rs 70 as fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
20 |
|
|
|
To Capital Reserve A/c |
|
|
20 |
|
|
|
(Balance in Share Forfeiture after re-issue transferred to Capital Reserve) |
|
|
|
|
