Question

Nivetha Ltd. forfeited 1,000 equity shares of ₹ 10 each for non-payament of call of ₹ 4 per share. Of these 800 shares were reissued @ ₹ 7 per share. Pass journal entries for forfeiture and reissue?

Answer 1

Date	Particulars	L.F.	Debit Rs.	Credit Rs.
(1)	Share Capital A/c (100 × Rs. 8)  Dr.   To share I call A/c (100 × Rs. 2)   To Forfeiture of shares A/c  (100 × Rs. 6)  [Forfeiture of shares made]		800	200 600
(2)	Bank A/c (75 × Rs. 7)  Dr. Forfeited shares A/c (75 × Rs. 1)  Dr.    To Share capital A/c (75 × Rs. 8) [Reissue of forfeited shares]		525 75	600
(3)	Forfeited shares A/c  Dr.         To Capital Reserve A/c  [Profit on reissue transferred to capital reserve]		375	375