Question

Issue of Shares at Par and Forfeiture
33. Ravi was holding 25 shares of 10 each on which he paid * 2 on application but
could not pay 3 on allotment and 2 on first call. Directors forfeited the share
after first call. give the journal entry of forfeiture

Answer 1

Answer :

• Holding - 25 shares

• ₹10 on each

• On Application - ₹2

• On Allotment - ₹3

• On First Call - ₹2

• On Final call - ₹3

= 2 + 3 + 2 + 3 = ₹ 10

Required Journal Entry :

➝ Share Capital ac Dr.25×10. 250

To Share Forfeited ac 25×2. 50

To Allotment ac 25×3. 75

To First Call ac 25×2. 50

To Final Call ac 25×3. 75

( Forfeiture for non payment of call and allotment Money )