Question

46. ABC Ltd. forfeited 150 equity shares of * 10 each issued at a premium of 5 per share, for
non-payment of allotment money of 8 per share (including premium of 5 per share), the
first call of *2 per share and the final call of 3 per share. Out of these, 100 equity shares
were re-issued at * 14 per share. Give journal entries in the books of the company to record
the forfeiture and re-issue of shares.
TAns conite​

Answer 1

share capital a/c Dr 1500

securities premium a/c Dr 750

To share forfeited a/c 1050

To calls- in- arrears a/c1200

bank a/c Dr 1400

share forfeited a/c Dr 400

to share capital a/c 1000

forfeited share a/c Dr 300

to capital reserved a/c 300