Question

VT Ltd forfeited 200 shares of ₹ 10 each , issued at a premium of ₹ 5 per share , held by Mohan for non-payment of the final call of ₹ 3 per share . 100 out of these shares were reissued to Narendra at a discount of ₹ 4 per share . Journalise.

Answer 1

	Books of VT Limited Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
		Share Capital A/c (200 × Rs 10)	Dr.		2,000
		To Share Forfeiture A/c (200 × Rs 7)				1,400
		To Calls-in-Arrears A/c				600
		(200 shares of Rs 10 each forfeited for non-payment of Rs 3 each)
		Bank A/c	Dr.		600
		Share Forfeiture A/c (100 × Rs 4)	Dr.		400
		To Share Capital A/c				1,000
		(100 shares of Rs 10 each re-issued at Rs 6 per share fully paid-up)
		Share Forfeiture A/c	Dr.		300
		To Capital Reserve A/c				300
		(Balance in share forfeiture of 100 shares transferred to capital reserve)

Working Notes:

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	Rs 3	per share

Capital Reserve	= Balance in Share Forfeiture after re-issue (per share) × No. of shares re-issued
	= Re 3 × 100
	= Rs 300