33. Ravi was holding 25 shares of 10 each on which he paid 2 on application but
could not pay 3 on allotment and 2 on first call. Directors forfeited the shares
after first call. Give journal entries for recording the forfeiture of shares
[Ans : Share Forfeiture a/c 50]
Answers
Answer:
share capital a/c.(25 × 7 ). Dr. 175
To share Forfeiture a/c ( 25 × 2 ) 50.
To. share allotment a/c. ( 25 × 3 ) 75
To share first call a/c. ( 25 × 2 ) 50;
( Being 25 share forfeited @7 for non payment of allotment and first call )
Called up value of the share = Rs.7, so the share capital account will be debited by 25 shares x Rs.7.
Arrears in call value of 25 shares = Rs.5, so the respective call account or calls in arrears account will be credited by 25 shares x Rs.5.
Paid-up value per share forfeited = Rs.2, so the share forfeiture account will be credited by 25 shares x Rs.2.
Share Capital A/c. Dr. (25 x 8) 175
To Calls in Arrears A/c. (25 x 5) 125
To Share Forfeiture A/c (25 x 2) 50
(25 shares forfeited after 1st call)