Question

on which John
money of 5
ud forfeited 20 shares of 10 each, 8 called up,
ich John had paid application and allotment
of 5 per share, of these, 15 shares were
ved to Parker as fully paid-up for * 6 per
What is the balance in the share Forfeiture
Amount after the relevant amount has been
transferred to Capital Reserve Account?
(2) NIL (6) 75 (c) & 25 (d) 100
rey
$​

Answer 1

Explanation:

Share capital A/C ..........Dr. 160

To share unpaid calls A/C. 60

To shares forfeited A/C. 100

(Being shares forfeited)

2- Bank A/C .........Dr. 90

Shares forfeited A/C.Dr.60

To share capital A/C. 150

(Being Share reissued)

3- Share forfeited A/C ....Dr. 15

To capital Reserve A/C. 15

Working Note -1 (Calculations of amount transfer to Capital Reserve A/C)

100 * 15/20 - 60 =15