Question

Show the forfeiture and reissue entries under each of the following cases:
(i) X Ltd. forfeited 300 shares of ₹ 10 each, ₹ 8 called-up held by Mr. A for non-payment of second call money of ₹ 3 per share. These shares were reissued to Mr. Z for ₹ 10 per share as fully paid-up.
(ii) Y Ltd. forfeited 400 shares of ₹ 10 each, fully called-up, held by Mr. B for non-payment of final call money of ₹ 4 per share. These shares were reissued to Mr. T at ₹ 12 per share as fully paid-up.
(iii) Z Ltd. forfeited 250 shares of ₹ 10 each, fully called-up held by Mr. C for non-payment of allotment @ ₹ 8 per share as fully paid-up to Mr. P.

Answer 1

$Calculation of capital reserve \\capital reserve = share of forfeiture Cr. - Share Forfeiture Dr\\Capital Reserve = Rs. 1500 - NIL = RS.1500$

Calculation of capital reserve

Capital Reserve = Share of forfeiture cr - Share forfeiture Dr

Capital reserve = 2400 - NIl = rs 2400

Calculation of capital reserve

Capital Reserve = Share of forfeiture cr - Share forfeiture Dr

Capital reserve = 750 - 500 = rs 250