Question

The Directors of a company forfeited 300 shares of ₹ 10 each issued at a premium of ₹ 3 per share, for the non-payment of the first call money of ₹ 2 per share. The final call of ₹ 2 per share has not been made. Half the forfeited shares were reissued at ₹ 1,500 as fully paid-up. Record the journal entries for the forfeiture and reissue of shares.

Answer 1

Capital Reserve is 900.

Explanation:

Calculation of Balance of forefeiture of reissued shares.

Share  forefeiture  per share Cr.  =Rs.6

Less ( Share  forefeiture  per share Dr) =NIl

Balance of forefeiture of reissued shares = Rs.6

Capital Reserve

=Balance of forefeiture of reissued shares × Number of Shared reissued

= 6 ×150 = Rs.900