Question

SD.India Ltd.forfeited 500 equity shares of rs.100 each issued at a premium of 10% (to be paid on allotment ),on which first call money rs.20 each was not received and final call of rs.30 is yet to be made.The company re-issued these shares at rs.60 per share of rs.70 paid up.Give journal entries regarding forfeiture and reissue

Answer 1

share capital a/c     dr.     35000
    to first call a/c                         10000
    to share forfeiturea/c             25000
2. bank  a/c             dr.      30000
    share forfeiture a/c dr.    5000
         to share capital a/c           35000