The issued share capital of a company consisted of 10,000 equity shares of 100 each fully called up. The Board of Directors decided, after the completion of necessary legal Formalities, forfeited 200 of these shares for non-payment of the last call of 30 per Share. These are subsequently, re-issued as fully paid at a premium of 10 per share.
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Answer:
share capital a/c .....dr (200×10) 20000
to calls in arrear a/c..(200×30) 6000
to share forfeiture a/c (200×70) 14000
bank a/c ....dr (200×110) 22000
to share capital a/c (200×100) 20000
to security premium a/c (200×10) 2000
share forfeiture a/c ....dr 14000
to capital reserve a/c 14000
Explanation:
full share forfeiture amount to sent to capital reserve a/c as reissue of share are fully called up at premium
ans 14000 to capital reserve
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