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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
On 1st May, 2023, Moneyplus Ltd. forfeited 200 shares of ₹20 each, ₹15 per share called-up, on which A had paid ₹10 per share, the ₹5 per share first call being unpaid. Ten days later, the Directors reissued the forfeited shares to B, credited as ₹15 per share paid-up, for a payment of ₹10 per share. Give the Journal entries to record the forfeiture and reissue.
JOURNAL (Books of Moneyplus Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| 2023 May 1 | Share Capital A/c (200 × ₹15) Dr. | 3,000 | ||
| To Share Forfeiture A/c (200 × ₹10) | 2,000 | |||
| To Share First Call A/c (200 × ₹5) | 1,000 | |||
| (200 shares, ₹15 called-up, forfeited for non-payment of the ₹5 first call) | ||||
| May 1 | Bank A/c (200 × ₹10) Dr. | 2,000 | ||
| Share Forfeiture A/c Dr. | 1,000 | |||
| To Share Capital A/c (200 × ₹15) | 3,000 | |||
| (200 shares reissued to B as ₹15 paid-up for ₹10 per share) | ||||
| May 11 | Share Forfeiture A/c Dr. | 1,000 | ||
| To Capital Reserve A/c | 1,000 | |||
| (Balance of Share Forfeiture Account on the 200 reissued shares transferred to Capital Reserve) |
Accounting & Commerce Educator
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.66 - Share Capital", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Share Capital.
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