Question

Cr.
(Rs.)
?
6,000
From the following information complete journal entries:
JOURNAL
Date
Particulars
L.F. Dr.
(Rs.)
Share Capital A/C......................Dr.
?
Securities Premium A/C.............Dr.
2,000
To Share forfeiture A/C
To calls in arrears A/C
(Being..?....shares forfeited for non
payment of...?.... including premium
of Rs. 2 per share)
Bank A/c..............
?
Share forfeiture A/C..................Dr.
?
To share Capital A/C
(Being ...?... shares reissued @ Rs. 9
per share as fully paid)
Share forfeiture A/C.....................Dr.
1,800
To Capital Reserve A/C
(Being forfeiture money transferred
to capital reserve account.)
...Dr.
1,800
Dr.
SHARE FORFEITURE A/C
Cr.
Amount
4,000
Particulars
Amoun Particulars
t
To share capital A/C
? By share Capital A/C
To Capital Reserve A/C 1,800
To Balance c/d
1,600
4,000
(Face value of shares is Rs. 10 each)
4,000​

Answer 1

Answer:

the shares for non-payment of calls due. But, the company can forfeit shares only if the Article of Association of the company allow forfeiture. If any shareholder is not able to pay the amount of call, the company may exercise the power to forfeit his shares on which he is unable to pay the amount of call.