Question

Record the journal entries for forfeiture and reissue of shares in the following cases:
(i) Basak Ltd. forfeited 20 shares of ₹ 10 each, ₹ 7 called-up on which the shareholder had paid application and allotment money of ₹ 5 per share. Out of these, 15 shares were reissued to Naresh as ₹ 7 per share paid-up for ₹ 8 per share.
(ii) Y Ltd. forfeited 90 shares of ₹ 10 each, ₹ 8 called-up issued at a premium of ₹ 2 per share to 'R' for non-payment of allotment money of ₹ 5 per share (including premium). Out of these, 80 shares were reissued to Sanjay as ₹ 8 called-up for ₹ 10 per share.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
(i)	Share Capital A/c (20 Shares × 7)	Dr.		140
	To Share Forfeiture A/c (20 Shares × 5)				100
	To Calls-in- Arrears A/c (20 Shares × 2)				40
	(20 Shares of Rs 10 each, Rs 7 called-up forfeited for the non-payment of call)
	Bank A/c (15 Shares × 8)	Dr.		120
	To Share Capital A/c (15 Shares × 7)				105
	To Securities Premium A/c (15 Shares × 1)				15
	(15 shares were reissued as Rs 7 paid-up for Rs 8 per share)
	Shares Forfeiture A/c (15 Shares × 5)	Dr.		75
	To Capital Reserve A/c				75
	(Transfer of profit on re-issue of 15 shares)
(ii)	Share Capital A/c (90 Shares × 8)	Dr.		720
	Securities Premium A/c (90 Shares × 2)	Dr.		180
	To Share Forfeiture A/c (90 Shares × 5)				450
	To Share Allotment A/c (90 Shares × 5)				450
	(Shares forfeited for non-payment of allotment)
	Bank A/c (80 Shares × 10)	Dr.		800
	To Share Capital A/c (80 Shares × 8)				640
	To Securities Premium A/c (80 Shares × 2)				160
	(80 shares were reissued for Rs 10, Rs 8 called-up)
	Shares Forfeiture A/c (80 Shares × 5)	Dr.		400
	To Capital Reserve A/c				400
	(Transfer of profit on re-issue of 80 shares)

Working Notes-
Note 1




Note 2