Question

A share of ₹ 100 issued at a premium of ₹ 10 on which ₹ 80 (including premium) was called and ₹ 60 (including premium) was paid, has been forfeited. This share was afterwards reissued as fully paid-up for ₹ 70 . Give Journal entries to record the above.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Share Capital A/c (Rs 80 – 10 premium)	Dr.		70
	To Share Forfeiture (Rs 60 – 10 premium)				50
	To Calls-In-Arrears A/c				20
	(A share of Rs 100 on which Rs 70 called excluding the amount of securities premium Rs 10, forfeited for non-payment of Rs 20)
	Bank A/c	Dr.		70
	Share Forfeiture A/c	Dr.		30
	To Share Capital A/c				100
	(A share of Rs 100 re-issued at Rs 70 as fully paid-up)
	Share Forfeiture A/c	Dr.		20
	To Capital Reserve A/c				20
	(Balance in Share Forfeiture after re-issue transferred to Capital Reserve)