Question

. Gaurav applied for 5,000 shares of 10 each at a premium of 2.50 per share. But he was allotted only
2,500 shares on pro rata basis. After having paid * 3 per share on application, he did not pay allotment
money of * 4.50 per share (including premium) and on his subsequent failure to pay the first call of
*2 per share, his shares were forfeited. These shares were reissued at the rate of 8 per share credited as
fully paid.
Pass Journal entries to record the forfeiture and reissue of shares.
A.A
bitmant
dh
od
27​

Answer 1

share capital. dr. 17500

sec prem reserve dr. 6250

to sh call in arrear. 8750

to share forfeiture. 15000

bank accounts. dr. 20000

sh forfeiture. dr. 5000

to share cap. 25000

share forfeiture. dr. 10000

ti capital reserve. 10000