Question

A Company forfeited 10 share of Rs 10 each at issued a Premium of 10% for non payment of the Final Call of Rs 3 Por share out of these I shares were reissued at RS 8 Per share as fully paid up. : Give entries for forfeiture and reissue
​

Answer 1

Explanation:

Equity Share Capital A/c Dr. (10x10) 100

To Calls In Arrear A/c. (10x3). 30

To Share Forfeiture A/c(10x7). 70

Bank A/c. dr.(1x8) 8

Share Forfeiture A/c dr.(1x2). 2

To Equity Share Capital A/c. 10

Share Forfeiture A/c. Dr. 5

To Capital Reserve. 5

workings

Calculation of capital reserve

Amt. forfeited on 1 share(1x7). 7

less: Loss on reissue. (1x2). (2)

Capital Reserve 5

Notes

Assumed that premium is called along with allotment

hope it helps