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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Kwality Hospitality Ltd. was incorporated with an authorised capital of ₹10,00,000, i.e. 1,00,000 equity shares of ₹10 each, and issued 50,000 equity shares for subscription payable ₹4 on application, ₹3 on allotment, and the balance as first and final call. The shares were fully subscribed and due amounts were received, except the first and final call on 4,000 shares. These shares were forfeited. Later, half of these shares were reissued as fully paid-up, and ₹4,000 was transferred to Capital Reserve. Pass the Journal entry for reissue of shares.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c (50,000 × ₹4) Dr. | 2,00,000 | |||
| To Share Application A/c | 2,00,000 | |||
| (Application money received) | ||||
| Share Application A/c Dr. | 2,00,000 | |||
| To Share Capital A/c | 2,00,000 | |||
| (Application money transferred to Share Capital) | ||||
| Share Allotment A/c (50,000 × ₹3) Dr. | 1,50,000 | |||
| To Share Capital A/c | 1,50,000 | |||
| (Allotment due) | ||||
| Bank A/c Dr. | 1,50,000 | |||
| To Share Allotment A/c | 1,50,000 | |||
| (Allotment money received) | ||||
| Share First and Final Call A/c (50,000 × ₹3) Dr. | 1,50,000 | |||
| To Share Capital A/c | 1,50,000 | |||
| (First and final call due) | ||||
| Bank A/c (46,000 × ₹3) Dr. | 1,38,000 | |||
| Calls-in-Arrears A/c (4,000 × ₹3) Dr. | 12,000 | |||
| To Share First and Final Call A/c | 1,50,000 | |||
| (First and final call received except on 4,000 shares) | ||||
| Share Capital A/c (4,000 × ₹10) Dr. | 40,000 | |||
| To Forfeited Shares A/c (4,000 × ₹7) | 28,000 | |||
| To Calls-in-Arrears A/c (4,000 × ₹3) | 12,000 | |||
| (4,000 shares forfeited for non-payment of the first and final call) | ||||
| Bank A/c (2,000 × ₹5) Dr. | 10,000 | |||
| Forfeited Shares A/c (2,000 × ₹5) Dr. | 10,000 | |||
| To Share Capital A/c (2,000 × ₹10) | 20,000 | |||
| (2,000 of the forfeited shares reissued, fully paid-up) | ||||
| Forfeited Shares A/c Dr. | 4,000 | |||
| To Capital Reserve A/c | 4,000 | |||
| (Balance in Forfeited Shares Account of the reissued shares transferred to Capital Reserve: 28,000 × 2,000 ÷ 4,000 = 14,000 − 10,000 = 4,000) |
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.79 - Share Capital", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Share Capital.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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