Question

On 1st May, 2014, Directors of a Limited Company forfeited 200 shares of ₹ 20 each, ₹ 15 per share called-up, on which ₹ 10 per share has been paid by the amount of the first call of ₹ 5 per share being unpaid. Ten days Later, the Directors reissued the forfeited shares to B credited as ₹ 15 per share paid-up, for a payment of ₹ 10 per share.
Give journal entries in the company’s books to record the forfeited shares and their reissue.

Answer 1

$calculation of capital reserve\\share forfeiture credit ( forfeiture) = 2000\\Less : share forfeiture debit (reissue) = 1000\\Bal. in share forfeiture account after re - issue = 1000\\Capital reserve = Bal. in share forfeiture account after re - issue = 1000$