Question

A company issued 10,000 shares of the value of ₹ 10 each, payable ₹ 3 on application, ₹ 3 on allotment and ₹ 4 on the first and final call. All amounts are duly received except the call money on 100 shares. These shares are subsequently forfeited by Directors and are resold as fully paid-up for ₹ 500.
Give necessary journal entries for the transactions.

Answer 1

$Share forfeiture Account (debit) = 600\\Less forfeiture Account (credit) = 500\\Balance in share forfeiture after re- issue = 100\\capital reserve = balance in share forfeitureA/c after reissue = 100$