Question

Amit holds 100 shares of Rs 10 each on which he has paid Re.1 per share as application money. Bimal holds 200 shares of Rs 10 each on which he has paid Re.1 and Rs 2 per share as application and allotment money, respectively. Chetan holds 300 shares of Rs 10 each and has paid Re.1 on application, Rs 2 on allotment and Rs 3 for the first call. They all fail to pay their arrears and the second call of Rs 2 per share and the directors, therefore, forfeited their shares. The shares are reissued subsequently for Rs 11 per share as fully paid. Journalise the transactions.

Answer 1

Date	Particulars				L.F.	Debit Amount Rs	Credit Amount Rs
	Share Capital A/c (600×8)			Dr.		4,800
		To Share Allotment (100×2)					200
		To Share First Call A/c (300×3)					900
		To Share Second Call A/c (600×2)					1,200
		To Share Forfeiture A/c					2,500
	(600 shares @ Rs 10 per share Rs 8 called-up forfeited after making Second Call)
	Bank A/c			Dr.		6,600
		To Share Capital A/c					6,000
		To Securities Premium A/c					600
	(600 shares @ Rs 10 each for Rs 11 per share fully paid-up reissued)
	Share Forfeiture A/c			Dr.		2,500
		To Capital Reserve A/c					2,500
	(Balance of Share Forfeiture Account transferred to Capital Reserve Account after reissue)

Working Notes:

Share Forfeiture Account credited
	Amit		(100×1)	=	100
	Bimal		(200×3)	=	600
	Chetan		(300×6)	=	1,800
					2,500