Question

16 You are required to complete the following incomplete journal entries related to forfeiture and reissue
of shares originally issued at premium:
Journal
Date Particulars
LF. Dr. (3)
Cr.
1
Dr.
350
Share Capital A/C
Dr.
250
To
To
(Being 50 shares forfeited for non-payment of allotment
money of 9 per share including 5 of securities premium
per share)
600
100
Bank A/C
Dr.
To
To
(Being 50 forfeited shares reissued at 12 each fully paid-
up)​

Answer 1

Answer:

share capital account dr 350

secutities premium

reserve. dr 250

To share allotment. 450

To share forfeiture. 150

Bank account. dr 600

To share capital. 500

To Security premium

reserve. 100

share forfeiture dr. 150

To capital reserve. 150