Question

150 shares of ₹ 10 each issued at a premium of ₹ 4 per share payable with allotment were forfeited for non-payment of allotment money of ₹ 8 per share including premium. The first and final call of ₹ 4 per Pass Journal entries in the books of X Ltd. for the above.

Answer 1

Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
	Share Capital A/c	Dr.		900
	Securities Premium A/c	Dr.		600
	To Share Allotment A/c				1,200
	To Share Forfeiture A/c				300
	(150 shares of Rs 10 each forfeited for non–payment of allotment money of Rs 8 per share including premium of Rs 4 per share)
	Bank A/c	Dr.		2,250
	To Share Capital A/c				1,500
	To Securities Premium A/c				750
	(150 shares of Rs 10 each reissued for Rs 15 per share fully paid–up)
	Share Forfeiture A/c	Dr.		300
	To Capital Reserve A/c				300
	(Balance of Share Forfeiture Account transferred to Capital Reserve Account)