Question

Girish Ltd hold on 31 March, 2008 40,000 Equity Shares of Rs. 10, Rs. 8 per share called up in
September, 2008 the company decided to reduce Rs. 10 shares to Rs. 8 shares as fully paid by cancelling
unpaid amount of Rs. 2 per share. Pass Journal Entries.
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Answer 1

Answer:

equity share capital a/c dr 320000

calls in arrear a/c dr 80000

To share forefiture a/c 320000