Question

in the following cases:
(1) Ebony Limited forfeited 100 shares of 10 each issued at par to Mahesh on which he had paid up
rs 2 per share. Out of these 80 shares were reissued @ 6 per share to Suresh, rs8 paid-up​

Answer 1

Answer:

share capital account. dr 1000

To calls in arrear account. 800

To share forfeiture account 200

bank account. dr. 480

share forfeiture dr 160

To share capital account. 640

no profit or no loss amount transferred to capital reserve nil

Answer 2

Answer:

1). Share capital A/c .Dr - 1000

Share capital A/c .Dr - 1000 To, Share forfeiture A/c - 200

Share capital A/c .Dr - 1000 To, Share forfeiture A/c - 200 To, Call in Arrear A/c - 800

2). Bank A/c .Dr - 600

. Bank A/c .Dr - 600 Share forfeiture A/c - 200

. Bank A/c .Dr - 600 Share forfeiture A/c - 200 To, Share capital A/c - 800

There will be nil in share forfeiture account and capital reserve account because of this method {(200/100*100)-200}