Question

C Ltd forfeited 700shares of 10 each fully called up on which the holder has paid application money @ rs 3 allotment money @2 per share out of these 300 share were reissued as fully paid @ rs 7 per share

Answer 1

heyaa,,,

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journal entry will be :

1. sare capital a/c Dr 7,000

to share forfeiture a/c 3,500.

to calls in arrears a/c 3,500.

(share forefeited)

2. Bank a/c Dr 2,100.

share forfeiture a/c Dr 900.

to share capital a/c 3,000.

(amt. received on reissue of shares )

3. Share forfeiture a/c Dr 2,600.

to capital reserve a/c 2,600.

(transferred to CR)

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hope it helps...