Question

X Ltd. forfeited 900 Equity Shares of ₹ 100 each for the non-payment of allotment money of ₹ 30 per share and the first call of ₹ 20 per share. The second and final call of ₹ 25 per share has not been made. The forfeited shares were reissued for ₹ 90 per share, ₹ 75 paid-up. Journalise the above.

Answer 1

$Payable as:\\On Application (b/f) = 25\\On Allotment = 30\\ On First call = 20\\On final call (uncalled ) = 25\\Total = 100\\called up = 75$$Share forfeiture A/c would be credited with 25*900 = 22,500\\calculation of capital reserves \\Share forfeiture A/C = Rs.22500\\Share forfeiture A/C (dr) = Nil \\Capital = 22500$