Question

Give necessary Journal entries:

Virender Limited forfeited 20 shares of ₹ 100 each (₹ 60 called-up) issued at par to Mukesh on which he had paid ₹ 20 per share. Out of these, 15 shares were reissued to Sanjeev as ₹ 60 paid-up for ₹ 45 per share.

Answer 1

Journal Entries
Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
1.	Share Capital A/c   ...Dr.		1,200
	To Calls-in-Arrears A/c			800
	To Share Forfeiture A/c			400
	(20 shares forfeited on which ₹ 20 per share had been paid)
2.	Bank A/c   ...Dr.		675
	Share Forfeiture A/c   ...Dr.		225
	To Share Capital A/c			900
	(15 forfeited shares reissued @ ₹ 45 per share as ₹ 60 paid-up)
3.	Share Forfeiture A/c   ...Dr.		75
	To Capital Reserve A/c			75
	(Gain on reissue transferred to Capital Reserve)

Working Note:

20 shares of ₹ 100 each were ₹ 60 called-up.

Amount paid by Mukesh = ₹ 20 per share.

Amount forfeited:

20 × ₹ 20 = ₹ 400​

Unpaid amount:

20 × (₹ 60 − ₹ 20) = ₹ 800

15 shares were reissued as ₹ 60 paid-up for ₹ 45 per share.

Cash received:

15 × ₹ 45 = ₹ 675

Share Capital credited:

15 × ₹ 60 = ₹ 900

Discount on reissue:

₹ 900 − ₹ 675 = ₹ 225

Forfeited amount relating to 15 shares:

`400 xx 15/20 = 300`

Capital Reserve:

₹ 300 − ₹ 225 = ₹ 75