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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
A share of ₹100, issued at a premium of ₹10, on which ₹80 (including premium) was called and ₹60 (including premium) was paid, has been forfeited. This share was afterwards reissued as fully paid-up for ₹70. Give Journal entries to record the above.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Share Capital A/c (₹80 − ₹10 premium) Dr. | 70 | |||
| To Share Forfeiture A/c (₹60 − ₹10 premium) | 50 | |||
| To Calls-in-Arrears A/c | 20 | |||
| (A share of ₹100 on which ₹70 was called (excluding the ₹10 securities premium, already received) forfeited for non-payment of ₹20) | ||||
| Bank A/c Dr. | 70 | |||
| Share Forfeiture A/c Dr. | 30 | |||
| To Share Capital A/c | 100 | |||
| (The share reissued at ₹70, fully paid-up) | ||||
| Share Forfeiture A/c Dr. | 20 | |||
| To Capital Reserve A/c | 20 | |||
| (Balance in Share Forfeiture Account after reissue 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.83 - 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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