Question

6. X Ltd. decided to forfeit 1,000 shares of Rs. 10/- each for non-payment of allotment
money for Rs. 41- each and 1st and final call money of Rs. 3/- each. Give journal
entry for the forfeiture of shares.
​

Answer 1

Given :

• 1000 Shares

• at ₹ 10/- per share

• Forfeited Shares of allotment and first and final call Money

• Allotment Money = ₹4

• First and final call Money = ₹3

Required Journal Entry :

Share Capital ac Dr. 10,000

To Share Forfeited ac 3,000

To Share allotment ac 4,000

To Share 1st and final call ac. 3,000

( Shares Forfeited )

Working Note :

Share Capital ac

= 1,000 × 10 = 10,000

Shares Forfeited ac

= 10,000 - ( 4,000 + 3,000) = 3,000

Shares Allotment ac

= 1,000 × 4 = 4,000

Shares 1st and final call ac

= 1,000 × 3 = 3,000