Question

C Ltd. forfeited 300 shares of ₹10 each issued at 20% premium (to be paid at the time of allotment) for non-payment of allotment money of ₹4 per share (including premium), first call of ₹3 per share and final call of ₹2 per share. Out of these, 200 shares were re-issued as fully paid-up at a discount of ₹3 per share. Journalise.

Answer 1

Journal Entries
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Share Capital A/c (300 × ₹10)     ...Dr.		3,000
	Securities Premium Reserve A/c (600 × ₹2)     ...Dr.		600
	To Share Allotment A/c (600 capital + 600 premium)			1,200
	To Share First Call A/c (300 × ₹3)			900
	To Share Final Call A/c (300 × ₹2)			600
	To Share Forfeiture A/c (3,600 − 2,700)			900
	(Being forfeiture of 300 shares for non-payment of allotment, calls & premium)
2.	Bank A/c (200 × ₹7)     ...Dr.		1,400
	Share Forfeiture A/c (₹3 × 200)    ...Dr.		600
	To Share Capital A/c			2,000
	(Being re-issue of 200 shares at ₹7, fully paid up, discount ₹600 adjusted)