Question

please ans..Forfeiture And Reissue of Shares..

Answer 1

Journal Entries in the books of the company -



Share application and allotment a/c Dr 405000

Discount on issue of shares a/c. Dr. 45000
(10% discount @450000)

To Equity Share capital a/c. 450000
(4500shares @ 100)

(Being application and allotment made due)




Bank a/c. Dr. 405000

To Share application and allotment a/c. 405000

(Being amount recieved from applicants)




Share first call a/c. . Dr. 112500
(4500 @ 25)

To Equity Share capital a/c. 112500

(Being share first call made due)




Bank a/c. . Dr. 112500

To Share First call a/c. 112500

(Being amount recieved on first call from applicants)



Share final call a/c. Dr. 112500
(4500 @25)

To Equity Share capital a/c. 112500

(Being share final call made due)



Bank a/c Dr. 110250

Calls in arrears a/c. Dr. 2250
(90@ 25)

To Share final call a/c. 112500

(Being actual amount recieved from applicants on final call)



Equity Share capital a/c. Dr 9000
(90@100)

To Shares forfeited a/c 2250
(90 @ 25)

To share final call a/c. 6750

(Being Shares forfeited)




Bank a/c. Dr 2520
(36 @70)

Shares forfeited a/c. Dr 1080
(36 @ 30)

To Equity Share capital a/c. 3600

(Being new shares issued at 70)




Shares forfeited a/c. Dr 1170
(2250 - 1080)

To Capital Reserve a/c. 1170


(Being balance of shares forfeited transfered to capital reserve)