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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Star Ltd. forfeited 500 Equity Shares of ₹100 each for non-payment of the first call of ₹30 per share. The final call of ₹10 per share was not yet made. Out of these, 60% of the shares were reissued for ₹39,000, fully paid. Journalise the forfeiture and reissue of shares.
JOURNAL (Books of Star Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Equity Share Capital A/c (500 × ₹90) Dr. | 45,000 | |||
| To Equity Share First Call A/c (500 × ₹30) | 15,000 | |||
| To Share Forfeiture A/c (500 × ₹60) | 30,000 | |||
| (500 equity shares, ₹90 called-up, forfeited for non-payment of the first call) | ||||
| Bank A/c (300 × ₹130) Dr. | 39,000 | |||
| To Equity Share Capital A/c (300 × ₹100) | 30,000 | |||
| To Securities Premium Reserve A/c (300 × ₹30) | 9,000 | |||
| (300 shares, 60% of those forfeited, reissued at ₹130 per share) | ||||
| Share Forfeiture A/c Dr. | 18,000 | |||
| To Capital Reserve A/c | 18,000 | |||
| (Forfeited amount on the 300 reissued shares transferred to Capital Reserve) |
Working Note: Amount transferred to Capital Reserve = Amount Forfeited × (Shares Reissued ÷ Shares Forfeited) = 30,000 × (300 ÷ 500) = ₹18,000.
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.71 - Share Capital", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Share Capital.
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