Question

X Ltd. forfeited 100 shares of ₹ 10 each (₹ 8 called-up) issued at a premium of ₹ 2 per share to Mr. R on which he had paid applications money of ₹ 5 per share, for non-payment of allotment money of ₹ 5 per share (including premium). Out of these, 70 shares were reissued to Mr . Sanjay as ₹ 8 called-up for ₹ 7 per share. Give necessary journal entries relating to forfeiture and reissue of shares.

Answer 1

$Calculation of capital reserve \\share forfeiture per share (cr.) = Rs.5\\less : Share forfeiture debit per share = rs.1\\Balance in share forfeiture of re - issue shared per share = rs4\\\\Capital Reserve = Balance in share forfeiture of re - issue shared per share * No. of shares reissued = 70 * 4 = 280$