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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Ratan Ltd. forfeited 3,000 shares of ₹10 each (issued at a ₹2 premium) for non-payment of the first call of ₹2 per share; the final call of ₹3 per share was not yet made. Of these, 2,000 shares were reissued at ₹10 per share as fully paid. Pass the entries for forfeiture and reissue. (CBSE Sample Paper 2023)
JOURNAL (Books of Ratan Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Share Capital A/c (3,000 × ₹7) Dr. | 21,000 | |||
| To Share Forfeited A/c (3,000 × ₹5) | 15,000 | |||
| To Share First Call A/c (3,000 × ₹2) | 6,000 | |||
| (3,000 shares, ₹7 called-up, forfeited for non-payment of the first call) | ||||
| Bank A/c (2,000 × ₹10) Dr. | 20,000 | |||
| To Share Capital A/c | 20,000 | |||
| (2,000 forfeited shares reissued at ₹10 per share, fully paid) | ||||
| Share Forfeited A/c Dr. | 10,000 | |||
| To Capital Reserve A/c | 10,000 | |||
| (Forfeited amount on the 2,000 reissued shares transferred to Capital Reserve) |
Working Note: Forfeited amount per share = 15,000 ÷ 3,000 = ₹5; for the 2,000 reissued shares = 2,000 × ₹5 = ₹10,000.
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Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 2 Chapter 1 Q.54 - Share Capital", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Share Capital.
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