Question

Class 12 practical problem for share forfeiture, re- issue and transfer os share solution

Answer 1

Explanation:

entry for share forfeiture

Share capital AC dr. _____.

To application and allotment Ac ______

( ________naration______ )

Application and allotment Ac dr. _______.

To share forfeiture Ac. . _____

(__________naration____

Then follow the steps

Share capital a/c Dr. ____

To share forfeited a/c. ______

To calls in arrears a/c. ______

(Being 20 share forfeited for non payment of call money)

2) . Bank A/c Dr

To Share Capital A/c

To Securities Premium Reserve A/c

(Being 15 shares reissued)

3) .Share forfeited a/c Dr

To Capital Reserve a/c

(being amount transferred to capital reserve)