Question

Pass journal entries in the following cases:
M Ltd  forfeited 200 Equity Shares of ₹10 each , issued at a premium of  ₹ 5 per share , held by Ram for non-payment of the final call of  ₹ 3 per share . Of these , 100 shares were reissued  to Vishu at a discount of   ₹ 4 per share . 

Answer 1

Journal

Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Equity Share Capital A/c	Dr.		20,000
	To Share Forfeiture A/c (2,000 × Rs 7)				14,000
	To Calls-in-Arrears A/c				6,000
	(2,000 shares of Rs 10 each forfeited for the non-payment of Rs 3 per share)
	Bank A/c	Dr.		600
	Share Forfeiture A/c (100 × Rs 4)	Dr.		400
	To Equity Share Capital A/c				1,000
	(100 shares of Rs 10 each reissued at Rs 6 per share as fully paid-up)
	Share Forfeiture A/c	Dr.		300
	To Capital Reserve A/c				300
	(Balance in Share Forfeiture of 100 re-issued shares transferred to Capital Reserve )

Working Note-

Share Forfeiture of re-issued shares
Share Forfeiture	Cr.	Rs 7	per share
Share Forfeiture	Dr.	Rs 4	per share
Balance in share forfeiture after re-issue	Cr.	3	per share

Capital Reserve = Balance in Share Forfeiture after re-issue × No. of shares re-issued

= Rs 3 × 100 shares 

= Rs 300