Advertisement Remove all ads

Bee Ltd. Company Forfeited 100 Equity Shares of the Face Value of ₹ 10 Each, ₹ 6 per Share Called-up, for Non-payment of First Call of ₹ 2 per Share. - Accountancy

Journal Entry

Bee Ltd. Company forfeited 100 Equity Shares of the face value of ₹ 10 each, ₹ 6 per share called-up, for non-payment of first call of ₹ 2 per share. The forfeited shares were subsequently reissued as fully paid-up @ ₹ 7 each.
Give necessary entries in the company's Journal.

Advertisement Remove all ads

Solution

Books of Bee Ltd. Company
Journal

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

 

Equity Share Capital A/c

Dr.

 

600

 

 

To Share Forfeiture A/c

 

 

400

 

To Calls-in-Arrears A/c

 

 

200

 

(100 shares of Rs 10 each Rs 6 called up, forfeited for the non-payment of first call Rs 2 per shares)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

700

 

 

Share Forfeiture A/c

Dr.

 

300

 

 

To Share Capital A/c

 

 

1,000

 

(100 shares of 10 each re-issued at Rs 7 per share, fully paid-up)

 

 

 

 

 

 

 

 

 

Share Forfeiture A/c

Dr.

 

100

 

 

To Capital Reserve A/c

 

 

100

 

(Balance in Share Forfeiture of re-issued shares transferred to Capital Reserve)

 

 

 

Working Note- 

Share Forfeiture Credit

400

Share Forfeiture Debit

300

Balance in Share Forfeiture of re-issued shares

 

100

Capital Reserve = Balance in Share Forfeiture of re-issued shares = ₹ 100

Concept: Accounting Treatment of Forfeiture and Re-issue of Share
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

TS Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 2
Chapter 1 Accounting for Share Capital
Exercise | Q 52 | Page 121
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×