Janata Ltd. forfeited 1,500 shares of Rs. 10 each at a premium of Rs. 2 each due to non-payment of First call of Rs. 3. The final call of Rs. 2 is not yet made. Out of these 900 shares were re-issued at Rs. 6, Rs. 8 called up. Pass journal entries to record the above transactions.
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Explanation:
In case the shares were issued at premium and the premium money has become due but has not been paid by defaulting shareholder, then any credit already given to 'Securities Premium Reserve Account' must be debited (cancelled) at the time of forfeiture of shares.
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