Question

X Ltd. forfeited 900 Equity Shares of ₹ 100 each for the non-payment of allotment money of ₹ 30 per share and the first call of ₹ 20 per share. The second and final call of ₹ 25 per share has not been made . The forfeited shares were reissued for ₹ 90 per share , ₹ 75 paid-up. Journalise the above. 

Answer 1

Application	25	Balancing Figure
Allotment	30
First Call	20
Final Call	25	Un-called
	100

Called-up Rs 75 per share

Books of X Limited
Journal

Date	Particulars		L.F.	Debit Amount  Rs	Credit Amount  Rs
	Equity Share Capital A/c (900×75)	Dr.		67,500
	To Share Forfeiture A/c				22,500
	To Calls-in-Arrears A/c				45,000
	(900 shares of Rs 100 each Rs 75 called-up, forfeited for the non-payment sum of allotment Rs 30 and first call Rs 20 per share)
	Bank A/c	Dr.		81,000
	To Share Capital A/c				67,500
	To Securities Premium A/c				13,500
	(900 shares of Rs 100 each re-issued as Rs 75 paid-up for Rs 90 each)
	Share Forfeiture A/c	Dr.		22,500
	To Capital Reserve A/c				22,500
	(Balance of Share Forfeiture Account after re-issue, transferred to Capital Reserve Account)

Working Notes-

Share forfeiture Account Credit
= Share application money received for 900 shares

= Rs 25 × 900 shares

= Rs 22500

Calculation of Capital reserve

Share forfeiture Account Credit      = Rs 22500

Share forfeiture Account Debit       = NIL           

Capial Reserve                                = Rs 22500