Question

A holds 100 shares of Rs. 10 each on which he has paid Re. 1 per share on application. B holds 200
Shares of Rs. 10 each on which he has paid Re. I on application Rs. 2 on allotment. C holds 300
shares of Rs. 10 cach who has paid Rs. I on applications, Rs. 2 on allotment and Rs. 3 on first call.
They all failed to pay their arrears and second call of Rs. 4 per share as well. All the shares of A, B
and C were forfeited and subsequently reissued at Rs. 11 per share as fully Paid-up.
4​

Answer 1

Explanation:

Particulars Amt Amt

1) Share Capital A/c (600 x 8 ) Dr 4800

To share allotment a/c ( 100 x 2 ) 200

To share first call a/c ( 300 x 3) 900

To share second call a/c (600 x 2) 1200

To share forfeiture a/c (600 + 1000 + 900) 2500

( Being 600 share @ Rs. 10 per share Rs. 8 called up

forfeited after making second call)

2) Bank a/c Dr 6600

To sh.capital a/c 6000

To securities a/c 600

( Being 600 share @ Rs. 10 each Rs. 11 per share

fully paid up reissued)

3) share forfeited a/c Dr 2500

To capital reserve a/c 2500

(Being balance of share forfeited account

transferred to capital reserve a/c after reissue).

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