Question

X ltd.forfeited 200 share of 100 each,rs 70 call up pnwhich the shareholders had paid application and allotment money of rs 50 per share. Out of these 150 share were reissued to naresh as rs 70 paidup for rs80 per share​

Answer 1

Answer:

share capital A/c (200×70) Dr. 14000

To Share Forfeiture A/c (200×50) 10000

To Calls in arrears A/c (200×20) 4000

Bank A/c (150×80) Dr. 12000

To share capital A/c 12000

Share forfeiture A/c Dr. 7500

To capital reserve A/c 7500

Explanation:

Capital reserve-

Amount of share forfeiture/No. of share forfeited × no. of re issued shares

10000/200×150= 7500

or (150×50 = 7500)

Answer 2

Answer:

Share Capital A/c (200 x 70)Dr. 14,000    To Calls in Arrears A/c (200 x 20)   4,000   To Share Forfeiture A/c (200 x 50)   10,000 (Forfeiture of 200 shares for non-payment of call money)           Bank A/c (150 x 80)Dr. 12,000    To Share Capital A/c (150 x 70)   10,500   To Securities premium A/c (150 x 10)   1,500 (Reissue of 150 shares at Rs 80 per share , Rs 70 paid up)           Share Forfeiture A/c (150 x 50)Dr. 7,500    To Capital Reserve A/c   7,500 (Profit on re-issue transferred to Capital Reserve Account)