Question

The Director of a company decided to forfeit 5,000 shares of Rs 100 per share on which called-up money was Rs 80. The bearer of these shares did not pay Rs 30 per share on first call and Rs 20 per share on finalcall. Make journal entry for forfeiture of the shares.​

Answer 1

Explanation:

share capital a/c dr 400000

To share forfeited a/c 250000

To calls in arrears a/c 150000